Several analytical vendors have recently opened algorithm marketplaces that enable algorithms or code snippets to be bought and sold. These marketplaces will see substantial growth. In fact, by 2020, Gartner predicts that the three leading marketplaces will offer more functions than all other analytical vendors combined - transforming the analytics and broader software market in the process.
Algorithms are the DNA of software. They codify the macrosteps of how computers already run large parts of the world. Gartner believes that the predominance of algorithms will only increase in the digital age, especially with the growth of the Internet of Things.
“Algorithm marketplaces are similar to the mobile app stores that created the ‘app economy’. The essence of the app economy is to allow all kinds of individuals to distribute and sell software globally without the need to pitch their idea to investors or set up their own sales, marketing and distribution channels,” explained Alexander Linden, research director at Gartner.
An algorithm marketplace takes the app economy one step further. It allows algorithms and other software components to be brokered. These algorithms are not stand-alone apps, but are meant to be used as building blocks within tailored solutions.