BI spending to grow 11%

By Staff Writer for Gartner
Johannesburg, 02 Apr 2008

The worldwide market for BI platforms is forecast to reach $5.8 billon in 2008, an 11.2% increase from 2007, says Dan Sommer, senior research analyst at Gartner.

According to the analyst, worldwide BI platform revenue is forecast to grow at a compound annual growth rate of 8.1% through 2012, to reach $7.7 billion.

Gartner analysts expect BI platform revenue to be less affected by an economic downturn than some other technologies because of the high priority BI platforms hold with CIOs. BI was the number one technology priority in 2008 in a worldwide survey of 1 500 CIOs by Gartner Executive Programs.

"Furthermore, the survey indicates CIOs are looking to increase their budgets for BI by about 11% this year.

"Despite BI being a top priority for 2009 and beyond, we expect a downward-spiral growth projection because of product and vendor consolidation, which will be offset somewhat by larger sales forces behind some of the products," Sommer says.

"Commoditisation of BI across the board, but in particular for query, online analytical processing and reporting, will drive price points down. This will be partially offset by newer, innovative BI capabilities, as well as the general proliferation of BI, allowing it to reach more users within organisations."

Last year saw a turbulent shakeout of BI vendors, with Microsoft growing its capabilities, and Business Objects (SAP), Cognos (IBM) and Hyperion (Oracle) being the most notable acquisitions of the year, resulting in a new playing field, dominated by these mega vendors, Sommer explains.

"Growth in 2007 has been partly inflated by Europe, the Middle East and Africa (EMEA), in which the strong euro has caused a boost of global growth rates when reporting in dollar terms. Overall for 2007, in dollar terms, EMEA and Asia/Pacific displayed stronger growth rates than North America, and they are expected to do so again in 2008."