According to Gartner, global business intelligence (BI) and analytics software revenues are to reach $18.3 billion in 2017-- a 7.3% increase from 2016, before growing to $22.8bn by end 2020.
The analyst says modern BI and analytics is expanding more rapidly than the overall market, offsetting declines in traditional BI spending. The modern BI and analytics platform emerged recently to meet new requirements for accessibility, agility and deeper analytical insight, shifting the market from IT-led, system-of-record reporting to business-led, agile analytics including self-service.
Mind, modern BI and analytics growth will eventually decelerate-- from 63.6% in 2015 to 19% in 2020. Such decline reflects data and analytics becoming mainstream, since pricing pressures will affect revenues despite growth in terms of seat expansion.
"Purchasing decisions continue to be influenced heavily by business executives and users who want more agility and the option for small personal and departmental deployments to prove success," Gartner says. "Enterprise-friendly buying models have become more critical to successful deployments."
The analyst points out 7 dynamics affecting the modern BI and analytics market:
- Modern BI at scale will dominate new buying-- Modern BI tools with support for greater accessibility, agility and analytical insight at enterprise level will dominate new purchases, acting as a catlyst for renewed IT engagement.
- New innovative and established vendors will drive the next wave of market disruption-- Smart data discovery capabilities, machine learning and analytics workflow automation will drive a "new flurry" of acquisitions, thanks to the potential value of reducing time to insights.
- Need for complex datasets drives investments in data preparation-- The ability to rapidly prepare, clean, enrich and find trusted datasets in a more automated fashion is a key enabler for more pervasive adoption and value from analytics.
- Support for real-time events and streaming data will expand use-- Vendors need to invest in IoT capabilities in order to offer customers a single platform combining real-time events and streaming data with other types of source data.
- Interest in cloud deployments will continue to grow-- Gartner expects the majority of new licensing buying will likely be for cloud deployments by 2020.
- Marketplaces will create new opportunities for organisations to buy and sell analytic capabilities and speed time to insight-- An active marketplace where buyers and sellers converge to exchange analytic applications, aggregated data sources, custom visualizations and algorithms can generate increased interest in the BI and analytics space and fuel its future growth.
"Organisations will benefit from the many new and innovative vendors continuing to emerge, as well as significant investment in innovation from large vendors and venture capital-funded startups," Gartner concludes. "They do, however, need to be careful to limit their technical debt that can occur when multiple stand-alone solutions that demonstrate business value quickly, turn into production deployments without adequate attention being paid to design, implementation and support."