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IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008
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IDC Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt From Idc #213671), August 2008

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  • 1. EXCERPT Worldwide Data Warehouse Platform Software 2007 Vendor Shares (Excerpt from IDC #213671) Dan Vesset Brian McDonough IN THIS EXCERPT The content for this excerpt was taken directly from the IDC Competitive Analysis Report, Worldwide Data Warehouse Platform Software 2007 Vendor Shares, by Dan www.idc.com Vesset and Brian McDonough (Doc # 213671). All or part of the following sections are included in this excerpt: IDC Opinion, In This Study, Situation Overview, Vendor Profiles, Future Outlook, and Essential Guidance. Also included are Table 1-4 and Figure 2. F.508.935.4015 IDC OPINION The future of the data warehouse (DW) platform software market remains bright. As P.508.872.8200 various business intelligence (BI) and analytics projects remained high on the priority lists of organizations of all sizes, the demand for DW platform software to support these BI and analytics projects continued to grow. In 2007, the DW platform software market was characterized by the following key trends: Revenue for DW platform software grew 14.6% to reach $6.7 billion for the Global Headquarters: 5 Speen Street Framingham, MA 01701 USA worldwide market. There was an increase in the supply of various prepackaged DW solutions that ranged from reference configurations involving software and hardware vendors, to fully preassembled DW appliances. Industry data models were increasingly sold along with DW platform software. All of these options helped to decrease the complexity and time involved in deploying data warehouses. The emerging DW appliances market, composed of physical and virtual appliances, continued to expand at a rapid pace with over a dozen solutions now offered by specialty and large IT vendors. Filing Information: August 2008, IDC #213671e, Volume: 1 Special Reports: Excerpt
  • 2. IN THIS STUDY This IDC study examines the DW platform software market for the period from 2005 to 2007. Worldwide market size is provided for 2007, with trends from 2005. Revenue and market share of the leading vendors is provided for 2007. This study also provides profiles of leading vendors and identifies the characteristics that vendors will need to be successful in the DW platform software market, and the considerations that end users should evaluate to assure successful BI projects. The vendor shares and competitive analysis contained herein update those found in Worldwide Data Warehouse Platform Tools 2006 Vendor Shares (IDC #207851, July 2007). Data Warehouse Platform Software Market Definition IDC defines the DW platform tools market as being composed of two market segments: data warehouse generation (DWG) and data warehouse management (DWM). Data warehouse generation. These software tools are software used in the design, cleansing, transformation, loading, and administration of the data warehouse. Data warehouse management. These software tools are database management software (DBMS) used to manage data in the data warehouse. SITUATION OVERVIEW The Data Warehouse Platform Software Market in 2007 As shown in Table 1, in 2007, the DW platform software market grew 14.6% to reach $6.7 billion in worldwide license and maintenance revenue. This growth was in the expected range of IDC's forecast as published in Worldwide Business Analytics Software 2007–2011 Forecast Update and 2006 Vendor Shares: Business Intelligence, Data Warehousing, and Analytics Applications Forecasts Point to Continued Strength (IDC #208699, September 2007). Table 1 also shows the different sizes and growth rates of the two primary segments of the DW platform software market: DW generation and DW management. 2 #213671e ©2008 IDC
  • 3. TABLE 1 Worldwide Data Warehouse Platform Software Revenue by Segment, 2005–2007 ($M) 2005 2006 2007 2006 2007 2005 2006 2007 Share (%) Share (%) Share (%) Growth (%) Growth (%) Data warehouse generation 1,196.8 1,358.0 1,548.4 22.9 23.1 23.0 13.5 14.0 Data warehouse 4,028.2 4,529.1 5,195.9 77.6 77.4 77.5 12.4 14.7 management Total 5,225.0 5,887.1 6,744.3 100.0 100.0 100.0 12.7 14.6 Source: IDC, June 2008 Performance by Geographic Region in 2007 Figure 2 shows the geographic breakdown of the DW platform software market. The Americas region continues to be the largest market, followed by Europe, the Middle East, and Africa (EMEA), and Asia/Pacific (AP). Further details and analysis of specific regional and country-level trends and market shares are available from IDC. FIGURE 2 Worldwide Data Warehouse Platform Software Revenue Share by Region, 2007 Asia/Pacific (13.1%) Americas (50.7%) EMEA (36.2%) Total = $6.7B Source: IDC, June 2008 ©2008 IDC #213671e 3
  • 4. Performance of Leading Vendors in 2007 Table 2 displays 2005–2007 worldwide revenue, growth, and market share of the leading DW platform software vendors. Table 3 displays 2005–2007 worldwide revenue, growth, and market share of the leading vendors competing in the DW generation segment of the market. Table 4 displays 2005–2007 worldwide revenue, growth, and market share of the leading vendors competing in the DW management segment of market. TABLE 2 Worldwide Data Warehouse Platform Software Revenue by Vendor, 2005–2007 ($M) 2005 2006 2007 2006 2007 Share (%) Share (%) Share (%) Growth (%) Growth (%) Company 2005 2006 2007 Oracle 1,653.2 1,885.4 2,136.7 31.6 32.0 31.7 14.0 13.3 IBM 1,120.7 1,254.4 1,423.7 21.6 21.4 21.2 11.9 13.5 Microsoft 630.2 775.7 904.7 12.1 13.3 13.5 23.1 16.6 Teradata 523.8 538.3 609.7 10.1 9.2 9.1 2.8 13.3 SAS 457.4 498.7 548.9 8.8 8.5 8.2 9.0 10.1 Informatica 222.8 248.0 283.1 4.3 4.2 4.2 11.3 14.1 Sybase 88.0 94.3 137.5 1.7 1.6 2.0 7.2 45.8 Business Objects 51.1 57.9 71.5 1.0 1.0 1.1 13.2 23.5 Netezza 22.0 31.1 49.3 0.4 0.5 0.7 41.9 58.3 Pitney Bowes 28.1 30.7 33.8 0.5 0.5 0.5 9.1 9.9 Fujitsu 34.5 35.3 28.4 0.7 0.6 0.4 2.5 -19.6 Software AG 18.7 20.3 23.7 0.4 0.3 0.4 8.7 16.7 Accelrys 11.7 14.6 18.3 0.2 0.2 0.3 24.8 25.3 CA 18.0 17.0 18.3 0.3 0.3 0.3 -6.0 7.9 Information Builders 16.1 14.8 15.0 0.3 0.3 0.2 -7.8 1.0 Kognitio 8.9 10.1 13.6 0.2 0.2 0.2 13.5 34.4 Evolutionary 9.9 10.7 11.7 0.2 0.2 0.2 7.9 10.2 Technologies International InterSystems 8.2 9.2 10.1 0.2 0.2 0.2 11.2 10.1 Hitachi 10.1 10.0 9.8 0.2 0.2 0.1 -0.3 -2.4 HP 5.1 5.7 8.4 0.1 0.1 0.1 11.1 47.8 Subtotal 4,938.4 5,562.1 6,356.0 94.5 94.5 94.2 12.6 14.3 Other 286.6 325.0 388.2 5.5 5.5 5.8 13.4 19.4 Total 5,225.0 5,887.1 6,744.2 100.0 100.0 100.0 12.7 14.6 Source: IDC, June 2008 4 #213671e ©2008 IDC
  • 5. TABLE 3 Worldwide Data Warehouse Generation Software Revenue by Vendor, 2005–2007 ($M) 2005 2006 2007 2006 2007 Company 2005 2006 2007 Share (%) Share (%) Share (%) Growth (%) Growth (%) IBM 220.7 256.4 296.3 19.0 19.4 19.6 16.1 15.6 SAS 224.1 255.6 291.3 19.3 19.3 19.3 14.0 14.0 Informatica 222.8 248.0 283.1 19.2 18.7 18.7 11.3 14.1 Microsoft 96.7 117.0 136.1 8.3 8.8 9.0 21.0 16.3 Oracle 72.0 82.7 94.4 6.0 6.1 6.1 14.9 14.2 Business Objects 51.1 57.9 71.5 4.4 4.4 4.7 13.2 23.5 Pitney Bowes 28.1 30.7 33.8 2.4 2.3 2.2 9.1 9.9 Accelrys 11.7 14.6 18.3 1.0 1.1 1.2 24.8 25.3 Sybase 12.5 14.0 15.8 1.1 1.1 1.0 11.6 13.1 Information Builders 16.1 14.8 15.0 1.4 1.1 1.0 -7.8 1.0 Evolutionary 9.9 10.7 11.7 0.8 0.8 0.8 7.9 10.2 Technologies International CA 10.4 9.8 9.8 0.9 0.7 0.7 -5.8 0.6 Software AG 6.8 7.5 8.7 0.6 0.6 0.6 9.9 16.7 Trillium Software 6.8 7.4 8.2 0.6 0.6 0.5 7.7 10.9 Progress Software 5.5 6.1 7.0 0.5 0.5 0.5 11.2 13.6 Composite 4.0 6.0 6.7 0.3 0.5 0.4 50.0 11.4 Software Subtotal 999.3 1,139.1 1,307.6 83.5 83.9 84.4 14.0 14.8 Other 197.5 218.9 240.8 16.5 16.1 15.6 10.9 10.0 Total 1,196.8 1,358.0 1,548.4 100.0 100.0 100.0 13.5 14.0 Source: IDC, June 2008 ©2008 IDC #213671e 5
  • 6. TABLE 4 Worldwide Data Warehouse Management Software Revenue by Vendor, 2005– 2007 ($M) 2005 2006 2007 2006 2007 Company 2005 2006 2007 Share (%) Share (%) Share (%) Growth (%) Growth (%) Oracle 1,581.2 1,802.7 2,042.3 39.3 39.8 39.3 14.0 13.3 IBM 899.9 998.0 1,127.4 22.3 22.0 21.7 10.9 13.0 Microsoft 533.5 658.7 768.6 13.2 14.5 14.8 23.5 16.7 Teradata 523.8 538.3 609.7 13.0 11.9 11.7 2.8 13.3 SAS 233.3 243.1 257.6 5.8 5.4 5.0 4.2 6.0 Sybase 75.4 80.3 121.7 1.9 1.8 2.3 6.5 51.5 Netezza 22.0 31.1 49.3 0.5 0.7 0.9 41.9 58.3 Fujitsu 34.5 35.3 28.4 0.9 0.8 0.5 2.5 -19.6 Software AG 11.9 12.8 15.0 0.3 0.3 0.3 8.0 16.7 Kognitio 8.9 10.1 13.6 0.2 0.2 0.3 13.5 34.4 InterSystems 8.2 9.2 10.1 0.2 0.2 0.2 11.2 10.1 Hitachi 10.1 10.0 9.8 0.2 0.2 0.2 -0.3 -2.4 CA 7.6 7.2 8.4 0.2 0.2 0.2 -6.2 17.7 HP 5.1 5.7 8.4 0.1 0.1 0.2 11.1 47.8 Subtotal 3,955.4 4,442.5 5,070.3 98.2 98.1 97.6 12.3 14.1 Other 72.8 86.6 125.6 1.8 1.9 2.4 19.0 45.1 Total 4,028.2 4,529.1 5,195.9 100.0 100.0 100.0 12.4 14.7 Source: IDC, June 2008 Vendor Profiles The sections that follow highlight the performance of the top 10 DW platform vendors based on software revenue and provide additional comments about a select group of additional DW platform software vendors. Oracle In 2007, Oracle was the largest DW platform software vendor with $2.1 billion in worldwide revenue. The company maintained its market share at just over 30% of the overall market. Oracle derives the vast majority of its DW platform software from the DW management segment of the market, but also offers DW generation software such as Oracle Warehouse Builder. In September 2007, the company introduced the Oracle Optimized Warehouse Initiative. This initiative has two parts: Optimized Warehouse Reference Configurations combine software and hardware components into a selection of configurations intended to suit individual customers' business, technical, and price/performance requirements. These DW offerings aren't actual appliances, but are pre-tested combinations of hardware and software. Reference architectures take a step forward in assisting clients beyond simply providing standalone software and hardware. Oracle Optimized Warehouses are DW solutions that equate to virtual business analytics appliances and are available from Oracle's hardware partners. These 6 #213671e ©2008 IDC
  • 7. appliances come with all the hardware and software components preinstalled and pre-configured, based on requirements of client organizations. In the case of the product offerings from the first three hardware vendors, there is a single number to call for all hardware and software support. Reference configurations and/or optimized appliances are available from Oracle on a number of hardware platforms, including Dell/EMC, HP, IBM, SUN, Fujitsu Siemens, and SGI. IBM IBM was the second largest DW platform software vendor by revenue with $1.4 billion in revenue and 21% market share. In addition to its DW software, IBM also provides server and storage hardware and professional services for DW solution deployments. In the DW platform software category, there is the InfoSphere Warehouse (running DB2 database server at its core) and a range of data integration software. IBM also has a solution called InfoSphere Balanced Warehouse, which started out providing prepackaged physical business analytics appliances. Over the past year, IBM has continued to deliver additional hardware and software integration to its Balanced Warehouse offerings targeting customers of all sizes. Since the acquisition of Cognos, IBM has also began to offer a version of the InfoSphere Balanced Warehouse with Cognos BI Starter Edition, thus combining DW and BI software in a single appliance. Microsoft Microsoft rounds out the top 3 DW platform software vendors with $905 million in software revenue and 13.5% share. It again grew the fastest of the top 4 vendors that in aggregate account for 75% of the market share. Microsoft's offering in the DW platform software market includes the SQL Server for DW management and SQL Server Integration Services for data warehouse generation. In May 2007, Microsoft announced the availability of Microsoft's SQL Server database preconfigured with HP servers for data warehousing. In September 2007, it followed with a similar announcement with Dell. What makes these product packages appealing is that Microsoft SQL Server is not only a database management system, but also incorporates BI and data integration functionality in the form of Data Integration Services, Analysis Services, and Reporting Services. In both partnership cases, there are configuration options based on the amount of data with pricing that is attractive compared to purchasing all the required components individually. On July 24, 2008, Microsoft announced its intent to acquire DATAllegro, a business analytics appliance vendor. The biggest value to Microsoft will be DATAllegro's software that was focused on parallel processing and I/O optimization. In the short term, given DATAllegro's size, this acquisition will not do much to Microsoft's share in the overall data warehouse market as measured by software revenue. However, this acquisition will play a significant role in expanding Microsoft's range of offerings on a continuum of data warehousing requirements. As the sizes and performance requirements of Microsoft's DW clients grow, the company will be able to use the newly acquired technology to address the needs of its clients at the high end of the DW requirements spectrum. See Microsoft Set to Expand Its Data Warehousing Solution Portfolio with the Acquisition of DATAllegro (IDC #lcUS21359908, July 2008). ©2008 IDC #213671e 7
  • 8. Teradata Teradata ended 2007 with $610 million in DW platform software revenue and 9% market share. Prior to the company's spin-off from NCR in 2007, IDC speculated that there was a high likelihood that Teradata would experience a slowdown in growth in 2007 due to the spin-off. Instead, Teradata accelerated its software growth in 2007 as its products continued to gain traction among end users with high data volume requirements and a shared vision for enterprise data warehouse (EDW) architecture. Over the past couple of years, Teradata has been targeted by several new entrants into the DW platform market that have introduced lower priced options of massively parallel processing (MPP)-based DW solutions. Revenue data suggests that as an independent company, Teradata has been able to respond to these challenges successfully. In April 2008, in its response to the growing competition from the business analytics appliances market, Teradata released the Teradata 2500 product as a business analytics appliance. This product enables Teradata customers and prospects to purchase DW capacity in smaller increments than previous Teradata bundles, alleviating the pricing issues faced by Teradata when competing with some of its lower-priced rivals. However, as IDC's end-user survey data show, price is only one of the criteria for evaluating business analytics appliances and Teradata remains a preferred choice for many organizations that have very large DW platforms. These clients also find value in Teradata's extensive professional services, industry and process data models, and high-availability and disaster recovery features. SAS SAS' presence in the DW platform software market grew 10% to just under $550 million. The company's broad portfolio of BI tools and analytic applications enables it to cross-sell complementary products, including those for SAS' DW platform software tools. SAS derives 53% of its DW platform software revenue from the DW generation segment with a combination of data integration and data quality software, including that of its DataFlux subsidiary. The rest of the company's revenue in this market comes from multithreaded relational storage software designed for use by SAS tools and applications to achieve a high level of flexibility required during model development processes. Recently, SAS announced its In-Database initiative, which embeds SAS analytical tasks or routines into relational database engines. Beginning with a partnership with Teradata, this initiative leverages the respective strengths of SAS and DW platform software. Informatica In 2007, Informatica was the sixth largest vendor with $283 million in revenue. All of its revenue within the DW platform software market comes from the DW generation segment where it was the number 3 vendor with close to 19% market share. Informatica's DW generation tools include both ETL and data quality products. The company's data integration platform is used for both DW and non-DW applications such as master data management and replication. In 2007 and 2008, Informatica has placed strong emphasis on its real-time data integration capabilities in addition to its traditional batch ETL capabilities. Also in 2007, Informatica released a software-as-a- service (SaaS) offering called Informatica On Demand, which is a set of hosted multi- tenant data integration services that have been designed to operate in a SaaS 8 #213671e ©2008 IDC
  • 9. environment. It provides data integration solutions that can be configured, deployed, and managed using a browser. Sybase Sybase saw a resurgence of demand for its Sybase IQ database in 2007. On the strength of this product, Sybase grew its DW platform software revenue 46% in 2007 to reach $138 million. As the first major columnar database vendor, Sybase had neglected the DW platform market until the past 18–24 months. In 2007, Sybase IQ experienced a 77% growth rate in revenue. On May 12, 2008, Sybase announced its first business analytics appliance. Marketed as the Sybase Analytic Appliance, the product combines Sybase IQ DW software, Sybase PowerDesigner, Sybase ETL, and Microstrategy BI software on IBM POWER Systems hardware platform (using AIX). The product will be sold, and first level support will be provided by mLogica, a services company that currently resells technology from all three vendors involved with the Sybase Analytic Appliance. Although there are over 1,300 customers of Sybase IQ, the products' market penetration is much lower than that for Sybase ASE database, providing the company with an opportunity to expand sales of IQ into its own user base as well as into net new accounts. Business Objects, a SAP Company Business Objects derives its DW platform software revenue from the DW generation market segment where it experienced rapid growth of 23.5% in 2007. Business Objects has both ETL and data quality tools that contribute to its position in this market. Business Objects' goal is to expand what it calls its Enterprise Information Management (EIM) product line. In early 2008, SAP completed its acquisition of Business Objects. Following a transition period that will include closer integration of its data integration technology with SAP applications and the NetWeaver platform, Business Objects will likely see expanded opportunities for its DW generation software. Netezza Netezza was again the fastest growing of the top 10 DW platform software vendors. Note that the revenue listed in Tables 1 and 3 of this study excludes IDC's estimate of Netezza's hardware revenue. In 2007, Netezza grew by close to 60%. As the first of the new business analytics appliances, Netezza accumulated over 140 customers by the end of 2007 and continues on an impressive path of growth. Netezza's initial success came from deployment of subject-specific data marts. However, some of its clients have extended their deployments into multidomain EDWs. IDC expects Netezza to continue to grow its EDW reference sites. In the second quarter of 2008, Netezza acquired NuTech. Although the new subsidiary will be run independently, it will provide Netezza with experience in advanced analytics and IDC expects that eventually some of NuTech's technology will find its way directly into the database or will be sold as an extension to the Netezza Performance Servers. Netezza has enjoyed first mover advantage and superb marketing and sales execution. However, with the entry of many new competitors, whose technology is being proven in the market, and more attention from large database vendors, Netezza is likely to encounter more competition in the coming years. ©2008 IDC #213671e 9
  • 10. Pitney Bowes The primary reason for including Pitney Bowes in the DW platform software report is due to the company's Group 1 data quality product line, which contributes revenue to the DW generation segment. Other Selected Vendors In addition to these DW platform vendors that lead the market based on software revenue, there are dozens of other software providers in this market. Some of vendors listed below are not included in the vendor share tables due to IDC having a low level of confidence in our revenue estimates for these vendors. The revenue contribution of these vendors to the market is accounted in the Other vendors revenue line of the tables included in this study. Some noteworthy, because of their technology feature/functionality or experience in the DW platform software market, representative vendors are listed the following paragraphs (in alphabetical order). Ab Initio. The company is a provider of data integration software for data warehouse generation with a focus on very large data warehouse projects. Accelrys. As a provider of analytics and data integration software, Accelrys has focused its sales almost exclusively on the life sciences industry. The company's inclusion in the DW generation market is based on its SciTegic data integration product line. GoldenGate. As a provider of data integration software, GoldenGate enables the real-time movement of new transactional data from primary database systems into the data warehouse while maintaining transactional integrity. In addition to delivering real-time data to the data warehouse, it provides dual-active high- availability solutions for data warehouse implementations and distinctively for Teradata, which was a codeveloped solution. HP. Although HP is one of the leading providers of hardware for DW platforms, the company's inclusion in this report is due to its Neoview business analytics appliance. Introduced in 2007, the product is a physical DW appliance with all components based on HP technology. These include everything from the storage and server to the OS and database software. The latter is based on the core code of HP NonStop SQL, which has been significantly modified for the special needs of an analytic database. Since the first release, the company has continued to improve the Neoview technology and build out a specialized sales, marketing, and professional services organization. Information Builders. The inclusion of Information Builders, which is primarily a business intelligence software vendor, in the DW platform software study, is due to the company's broad portfolio of data integration products, including DataMigrator and over 300 Native Data Adapters, from the iWay Software subsidiary. Kalido. It is a provider of data warehouse management and master data management software. Its primary DW software product is the Dynamic Information Warehouse, which automates the creation and life cycle management of data warehouses. 10 #213671e ©2008 IDC
  • 11. Kognitio. Founded in the United Kingdom, Kognitio entered the business analytics market in 2005 through a merger with WhiteCross. The company entered the U.S. market in February 2008. Kognitio has three main products including WX2 Analytic Database, Data Factory Toolkit, and Pricing Appliance. ParAccel. After the October 29, 2007, company launch, ParAccel has already secured customers. It is also one of only three business analytics appliance vendors to have published the results of its Transaction Processing Performance Council decision support benchmark (TPC-H). The company sells two primary products, Maverick and Amigo. The former is a standalone business analytics appliance, the latter is an add-on appliance capable of accelerating the performance of an existing DW deployed on Microsoft's SQL Server or Oracle databases. WhereScape. It is a provider of DW management software. Its WhereScape RED DW life cycle management software is designed to rapidly build and then maintain data warehouses developed on Oracle, Microsoft SQL Server, and Teradata platforms. Additional virtual or physical data warehouse appliances are described in more detail in Business Analytics Appliances: Novelty to Necessity (IDC #212720, July 2008). These DW platform software vendors include 1010Data, Greenplum, Illuminate, Vertica, InfoBright, Dataupia, Kickfire, AsterData Systems, and Exasol. FUTURE OUTLOOK The future of the data warehouse platform software market remains bright. As various BI and analytics projects remain high on the priority lists of organizations of all sizes, the demand for DW platform software to support these BI and analytics projects is likely to continue to grow. The amount and type of data continues to expand from traditional transactional data to various reference data sources, geo-spatial data, and different forms of unstructured data that some vendors transform into structured data. In the DW generation market, the key trend is for software vendors to offer functionality that supports more frequent data loads. Whereas in the past, many of the real-time or near real-time data integration technologies were deployed to bypass the data warehouse, IDC is seeing more deployments involving direct real-time updates of data warehouses. Data quality, metadata, and master data management tools will continue to find wider adoption as organizations grappling with the deluge of data will turn to more automated solutions to deal with the perennial business and IT problems related to information quality management. For more information about the latter two trends see Overcoming Data Integration and Data Quality Challenges: End-User Survey Results (IDC #212773, July 2008). Growing adoption of data warehouse appliances will continue at an aggressive pace. These purpose-built DW solutions, with their attractive price–performance ©2008 IDC #213671e 11
  • 12. characteristics, along with the ability to incrementally expand a DW deployment, are likely to continue to find favor with end-user organizations. For a detailed analysis of trends in this market segment see Business Analytics Appliances: Novelty to Necessity (IDC #212720, July 2008) The focus on small and mid-sized organizations, especially by the large DW platform software providers, continues and is introducing a whole new community that has previously had no experience with DW, to the capabilities of the technology. This trend presents opportunities to the thousands of large and small systems integrators, consultants, and value-added resellers whose services will be needed by the new DW technology acquirers. An updated DW platform software forecast will be published in IDC's upcoming study titled Worldwide Business Analytics Software 2007 Vendor Shares and 2008 – 2012 Forecast. ESSENTIAL GUIDANCE End Users DW technology evaluation and acquisition depends on several variables. The following are some of the many questions that organizations need to answer: What is the long-term strategic vision for the organization's DW platform? Should it include a single, centralized enterprise data warehouse (EDW) or distributed data marts or a combination of both? What is the state of the organization's current DW architecture and technology? How is it performing? Does it fulfill the needs of all relevant decision-maker user groups? What are the current and expected data volumes for the DW and the number of users with direct access to the DW? How frequently does the data need to be captured and loaded into a DW? What is the range of query workloads to be supported by the DW? What type of internal DW IT skills exist? What skills can a systems integrator provide? What is the right balance between internal and external IT staff? Is a software-as-a-service (SaaS) DW solution available? End users should continue to view DW platform software as the focal point of a broader business analytics architecture. Recently, much of the industry discussion has been about the emerging trend of increasing operational BI for which the technology often bypasses a DW, focusing instead on reporting directly off of operational applications. However, a solid DW or data mart strategy should remain as part of any operational BI initiative. Organizations need historical perspective to be able to establish monitoring thresholds and a basis for future predictions. 12 #213671e ©2008 IDC
  • 13. Many end-user organizations will already have either a central enterprise DW or distributed data marts. The key to successful utilization of these IT assets is a rationalized data integration and data quality strategy. Only by providing the right data to the right people at the right time can IT staff, charged with executing data warehousing projects, fulfill the needs of business end users. Any lack of confidence in the data due to a multitude of potential quality problems can derail even the most experienced IT team. It is therefore important for IT to work with their business constituents to jointly establish data quality standards whether they originate from compliance-related data governance projects, master data management projects or general performance management projects. Vendors DW platform software vendors continue to be split into two camps. One includes vendors anchored by their database products such as Oracle, IBM, Microsoft, Teradata, and Sybase. The other includes vendors that provide one or more nondatabase product(s) and include such companies as SAS, Informatica, Business Objects, Pitney Bowes, Accelrys, and Information Builders. Given the larger size of the database vendors, specialists will do well by continuing to innovate and expand their offerings with related functionality for unstructured, semi- structured and rich media content access, analysis, and management. Specialists can also expand into business activity monitoring and other real-time data capture and analysis market segments, which may require development or acquisition of rules engines. Horizontal functionality has sufficed so far and is likely to continue to benefit some DW platform software vendors. However, industry and business process–specific appliances are emerging and opportunities for specialized appliances for processes such as pricing optimization, fraud detection, or product recommendations will require more than technology expertise. DW vendors can gain industry or process expertise through partnerships with application vendors and systems integrators, through acquisitions, or internal focus on a select number of applications. In general, data quality and data integration remain the biggest challenges faced by end users when deploying business analytics solutions. Some of these challenges are directly tied to technology issues, but many are due to organizational issues with data management policies. Thus, services vendors have the opportunity to expand their business analytics projects to include expert advice on creating data governance bodies and policies for managing data quality and master data initiatives. These project extensions typically include a significant portion of non-IT tasks that fall under the broader business consulting domain. ©2008 IDC #213671e 13
  • 14. Copyright Notice This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit www.idc.com to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit www.idc.com/offices. Please contact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved. 14 #213671e ©2008 IDC

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