Press Release

STAMFORD, Conn., April 2, 2012 View All Press Releases

Gartner Says Worldwide Business Intelligence, Analytics and Performance Management Software Market Surpassed the $12 Billion Mark in 2011

Analysts Examine the Future of BI During the Gartner Business Intelligence Summit, April 1-3, in Los Angeles

      Worldwide business intelligence (BI) platform, analytic applications and performance management (PM) software revenue reached $12.2 billion in 2011, a 16.4 percent increase from 2010 revenue of $10.5 billion, according to Gartner, Inc. The BI, analytics and PM software market 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 digitized world, which is transforming industry after industry," said Dan Sommer, principal analyst at Gartner. 

"The strong growth was driven by two major forces. The first is that 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 No. 1 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," Mr. Sommer said. "Second, new buying centers are opening and expanding outside of IT, in line-of-business initiatives, and 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 Performance Management." 

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 No. 1 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 Performance Management Revenue Estimates for 2011 (Millions of U.S. Dollars)

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 Performance Management Revenue Estimates for 2011 by Subsegment (Millions of U.S. Dollars)

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 is 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 10 years, and help shift the center of gravity away from BI and analytics being only an enterprise IT push adopted by key stake-holders in lines of business, to one with a strong focus on the individual context, inside and outside the firewall. In 10 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.

Additional information on the BI, the analytics and performance management software market is being discussed at the Gartner Business Intelligence Summit taking place April 1-3 in Los Angeles. The Summit provides Gartner's latest insight on how to make BI in organizations meet the new needs of business after the recent economic shift. Business strategies, organizational structures, and BI and performance management (PM) architectures are being "reborn" to reflect changed priorities — helping organizations maximize the potential of these new opportunities by providing the insight that business leaders need.

For further information on the event, please visit www.gartner.com/us/bi. Follow news from the event on Twitter at http://twitter.com/Gartner_inc and using #GartnerBI.

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Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company 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 valuable partner to clients in approximately 10,000 distinct enterprises worldwide. 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, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

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