Megavendors are slowing market revenue growth but increasing business intelligence usage by bundling BI into their product stacks, according to Gartner, Inc.'s press release, "Gartner Says Megavendors Are Slowing Business Intelligence Revenue Growth but Increasing Usage by Bundling Applications."

Gartner analysts said that the increase in BI usage by organizations is driven by two factors.

“First, the megavendors will integrate BI in the infrastructure, applications and processes that users already work in, such as email, spreadsheets and other business applications, spreading it to a larger user base. Second, smaller vendors will lead improvements in usability enabled by mash-ups, visualization, search, Web 2.0, rich Internet environments and in-memory analytics. However, although employees are becoming savvier in their use of data, many still view BI as an isolated technology or activity so it will take time to adjust,” says Dan Sommer, senior research analyst at Gartner.

To compete, the megavendors are offering creative financing deals, such as free credit or payments by installments. This approach has not been common in the software market and might prove an advantage over smaller vendors, which are not in a position to offer such deals. Meanwhile, smaller vendors need to innovate to reach new levels of scalability, usability, advanced functionality and customization that megavendors can’t offer. In a tough selling environment, vendors need to improve and clarify the business case for BI to an audience outside of the IT organization.

Gartner analysts will further discuss BI market dynamics at the annual Gartner Business Intelligence Summit 2009 being held March 9-11, 2009 at the Gaylord National Resort in Washington D.C.

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