Gartner

Newsroom

STAMFORD, Conn., June 6, 2013 View All Press Releases

Gartner Says Worldwide Business Intelligence, CPM and Analytic Applications/Performance Management Software Market Grew Seven Percent in 2012

Analysts to Discuss Business Intelligence Trends at Gartner Business Intelligence and Information Management Summit 2013, June 10-11 in Mumbai, India

Worldwide business intelligence (BI), corporate performance management (CPM) and analytics applications/performance management software revenue totaled $13.1 billion in 2012, a 6.8 percent increase from 2011 revenue of $12.3 billion, according to Gartner, Inc. Tough macroconditions and confusion related to emerging technology terms led to more muted market growth than in previous years.

"After a few historic banner years of spend in the BI software market, which culminated in more than 17 percent growth in 2011, growth was more subdued in 2012, at seven percent," said Dan Sommer, principal research analyst at Gartner. "While this seems like a dramatic drop, it was in line with our forecasts published during 2012."

Gartner identified five key market dynamics that affected BI software spend and growth in 2012. The first two of these — challenging macronomics and term confusion around "analytics," "big data" and "BI" — had a negative impact on market growth while the third — BI spending moving outside of IT, causing the semantic layer to go into maintenance mode — had a neutral effect. However, the fourth and fifth dynamics — data discovery becoming a mainstream architecture and software as a service (SaaS), while still emerging, being the preferred option for granular analytics — were drivers of market growth.

While all five of the top five BI software vendors retained their top five status, IBM and SAS exchanged places to move IBM into third position and SAS into fourth (see Table 1). IBM grew 9.9 percent in 2012, with revenue of $1.6 billion. The top five vendors together accounted for 70 percent of the total BI software market revenue.

In first place, SAP once again had significantly higher revenue than any other vendor at $2.9 billion with 22.1 percent of the market, although this was up by just 0.6 percent from 2011. Second-place Oracle's revenue grew by 2.0 percent from 2011 to reach $1.9 billion. Fifth-place Microsoft enjoyed the highest growth of the top five vendors in 2012, with revenue rising by 12.2 percent compared with 2011, to reach $1.2 billion.

Table 1. Top 5 BI, CPM and Analytic Applications/Performance Management Vendors, Worldwide, 2011-2012 (Millions of Dollars)

Company

2012 Revenue

2012 Market Share (%)

2011 Revenue

2011-2012

Growth (%)

SAP

2,902.5

22.1

2,884.0

0.6

Oracle

1,952.1

14.9

1,913.5

2.0

IBM

1,625.6

12.4

1,478.8

9.9

SAS

1,599.7

12.2

1,542.9

3.7

Microsoft

1,189.3

9.1

1,059.9

12.2

Others

3,861.90

29.3

3,416.00

13.0

Total

13,131.1

100.0

12,295.1

6.8

Note: SAP reports in Euros, and faced currency head wind that hampered growth in USD.

Source: Gartner (June 2013)

"The business intelligence space managed to grow by a reasonable seven percent in 2012, despite difficult macroconditions, being on the tail end of a spending cycle, and confusion related to emerging technology terms causing a hold on purse strings," said Mr. Sommer. "On the positive side, data discovery became a mainstream architecture in 2012 and the vendors built on this paradigm gained market share, while most semantically layered BI platforms grew in the single digits, at best. Cloud-based buying is also starting to make an imprint on the radar, showing substantial growth, although cloud still accounts for a smaller portion of the BI market compared with other application markets."

On a regional level, Europe and Latin America showed subpar growth because of tough macroconditions and currency headwinds, which impacted vendors with a heavy weighting toward those geographies. Eurasia, the Middle East and Africa, and Asia/Pacific, however, continued to display double-digit growth patterns.

More detailed analysis is available in the report "Market Share Analysis: Business Intelligence,

Analytics and Performance Management, 2012." The report is available on Gartner's website at http://www.gartner.com/resId=2477022.

Additional information and analysis on the BI software market will be discussed at the Gartner Business Intelligence & Information Management Summit 2013 taking place June 10-11 in Mumbai, India. The Gartner BI & Information Management Summit 2013 is specifically designed to drive organizations toward analytics excellence by exploring the latest trends in BI and analytics and examining how the two disciplines relate to one another. Gartner analysts will discuss how the Nexus of Forces will impact BI and analytics, and share best practices for developing and managing successful mobile BI, analytics and master data management initiatives.

More information on the BI & Information Management Summit can be found at http://www.gartner.com/technology/summits/apac/business-intelligence-india/. Members of the press can register for this summit by contacting Sony Shetty at sony.shetty@gartner.com.

Information from the Gartner BI & Information Management Summit 2013 will be shared on Twitter at http://twitter.com/Gartner_inc using #GartnerBI.

Contacts
About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. We deliver the technology-related insight necessary for our 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, we are the valuable partner to clients in over 9,000 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 6,400 associates, including more than 1,480 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.

Gartner Insight
Gartner Webinars