Gartner Says Megavendors Are Slowing Business Intelligence Revenue Growth but Increasing Usage by Bundling Applications

Analysts Discuss Changing Business Intelligence Market Dynamics at Gartner Business Intelligence Summit 2009, 20-22 January in The Hague, Netherlands

(PresseBox) (Egham, ) The megavendors are slowing market revenue growth but increasing business intelligence (BI) usage by bundling BI into their product stacks as a low-cost or free value-add, according to Gartner, Inc.

Speaking ahead of the Gartner Business Intelligence Summit 2009, held on 20-22 January in The Hague, Netherlands, Gartner analysts said that the increase in BI usage by organisations 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, visualisation, 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," said Dan Sommer, senior research analyst at Gartner.

To compete, the megavendors are offering creative financing deals, such as free credit or payments by instalments. 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 customisation 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 organisation.

Mr Sommer advises organisations that BI will increasingly be a buyer's market and therefore beneficial to continue to invest in BI, but users must look beyond the up-front costs and consider total cost of ownership. They must also be aware of the risks of dependency on a single vendor's product stack, as well as the risks of overbuying when BI is offered at attractive rates.

Gartner recommends that the focus for end-user organisations should be two-fold when investing in BI. "They need to concentrate on the bottom line - profit margins, operational effectiveness, etc - particularly when there is smaller scope to grow the top line. In addition, they need to review the BI tools they already have - an audit might reveal they have more BI than they thought, particularly as it increasingly comes embedded in other business software," said Mr Sommer.

About Gartner Business Intelligence Summit 2009

Gartner analysts will further discuss BI market dynamics at the annual Gartner Business Intelligence Summit 2009 in The Hague, Netherlands, 20-22 January. For further information on the Summit, please visit www.europe.gartner.com/bi

Gartner UK Ltd

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 the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit www.gartner.com.

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