| Share

Gartner: Worldwide Business Intelligence, Analytics and Performance Management Software Market Surpassed US$12 Billion in 2011



STAMFORD, Conn., 3 April 2012 — Worldwide business intelligence (BI) platform, analytic applications and performance management (PM) software revenue reached US$12.2 billion in 2011, a 16.4 percent increase from 2010 revenue of US$10.5 billion, according to Gartner, Inc. It was the second-fastest growing sector in the overall worldwide enterprise software market in 2011.

"BI, analytics and PM have been identified as one way to filter vast and growing amounts of information to reach insights and decisions in the digitised world, which is transforming industry after industry," said Dan Sommer, principal analyst at Gartner. "Strong growth was driven by two major forces. Firstly, IT continues to spend and earmark money to BI, despite constrained budgetary environments. Gartner's 2012 CIO survey showed that analytics and BI is the top technology priority for CIOs in 2012. BI projects remain relatively shielded, while a healthy portion of any discretionary money will be available for upcoming analytic initiatives.

"Secondly, new buying centres are opening and expanding outside of IT in line-of-business initiatives, which are taking an increasingly large stake of the spending pie. Key drivers for this are self-service data discovery tools, the race among vendors to provide business context through packaged analytics and CFOs taking a renewed interest in BI and PM."

The top five vendors continue to consolidate the market through a combination of acquisition, integration and upsell/cross-selling activities with their stacks, resulting in them owning close to three quarters of the market. However, Gartner has identified more than 100 innovative vendors jostling for positions, some of them in hyper-growth mode. So, in no way is this a market with closed opportunities.

SAP remained the leading vendor in combined worldwide BI, analytics and PM software revenue in 2011, accounting for 24 percent of the market (see Table 1), followed by Oracle, SAS Institute, IBM and Microsoft. 

Table 1: Worldwide BI, Analytics and PM Revenue Estimates for 2011 (Millions of USD)

Company

2011

 Revenue

2011 Market Share (%)

2010

 Revenue

2010 Market Share (%)

2010-2011 Growth (%)

SAP

2,883.5

23.6

2,413.1

23.0

19.5

Oracle

1,913.5

15.6

1,645.8

15.7

16.3

SAS Institute

1,542.8

12.6

1,386.5

13.2

11.3

IBM

1,477.6

12.1

1,222.0

11.6

20.9

Microsoft

1,059.9

8.7

913.7

8.7

16.0

Other Vendors

3,363.8

27.5

2,931.1

27.9

14.8

Total

12,241.0

100.0

10,512.2

100.0

16.4

Source: Gartner (March 2012)

All three subsegments of the market showed fairly even growth (see Table 2).

"This goes to show that clients prefer a balanced approach to sourcing across a portfolio of technologies, rather than focusing on just one subsegment," said Mr. Sommer. "It's not a build or buy decision; it's both."

Table 2: Worldwide BI, Analytics and PM Revenue Estimates for 2011 by Subsegment (Millions of USD)

Subsegment

 2011 Revenue

2011 Market Share (%)

2010

 Revenue

2010 Market Share (%)

2010-2011 Growth (%)

Analytic Applications and Performance Management

1,938.6

15.8

1,652.6

15.7

17.3

BI Platform

7,793.4

63.6

6,703.3

63.7

16.3

CPM Suites

2,509.0

20.5

2,156.3

20.5

16.4

Total

12,241.0

100.0

10,512.2

100.0

16.4

Source: Gartner (March 2012)

"In 2011, the market was still dominated by traditional on-premises solutions linked to PCs," said Mr. Sommer. “However, key forces like cloud, mobile, social and big data will play a key role in increased adoption over the next ten years. This will help shift the centre of gravity away from BI and analytics being only an enterprise IT push adopted by key stakeholders in lines of business, to one with a strong focus on the individual context, inside and outside the firewall. In ten years time, everyone will be touched by analytics in a much denser and more frequent way than today."

Additional details are available in the Gartner report "Market Share: All Software Markets, Worldwide, 2011." The report is available on Gartner's website at http://www.gartner.com/resId=1969315.

About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner to 60,000 clients in 11,500 distinct organisations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyse and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 4,500 associates, including 1,250 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.