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Idc Worldwide Business Intelligence Tools 2008 Vendor Shares
 

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    Idc Worldwide Business Intelligence Tools 2008 Vendor Shares Idc Worldwide Business Intelligence Tools 2008 Vendor Shares Document Transcript

    • EXCERPT Worldwide Business Intelligence Tools 2008 Vendor Shares Dan Vesset Brian McDonough IN THIS EXCERPT The content for this Excerpt was taken directly from the IDC Competitive Analysis Report, Worldwide Business Intelligence Tools 2008 Vendor Shares, by Dan Vesset www.idc.com and Brian McDonough. All or part of the following sections are included: IDC Opinion, In This Study, Situation Overview, Vendor Profiles, Future Outlook, and Essential Guidance. Also included are Figures 1 – 4, and Tables 1 – 4. F.508.935.4015 IDC Opinion In 2008, the business intelligence (BI) tools market reached $7.8 billion in software license and maintenance revenue. The market growth of 10.6% in 2008 surpassed previous IDC projections. The BI tools market was characterized by the following P.508.872.8200 trends: ִ The spending by organizations of all sizes continued. However, the strength of the first three quarters of 2008 was followed by weakness in the fourth quarter, which is likely to carry into the first half of 2009. Furthermore, weak new license Global Headquarters: 5 Speen Street Framingham, MA 01701 USA sales for several leading vendors are likely to lead in the near term to a slower maintenance revenue growth rate. ִ Nevertheless, when compared with the broader IT market, the BI tools market remains an attractive opportunity for both large IT vendors and specialty ISVs. Thirty percent of the market continues to be occupied by specialty vendors with one or two focused software products. ִ For the third year in a row, the advanced analytics segment of the BI tools market grew faster than the query, reporting, and analysis (QRA) segment, and we expect this trend to continue. ִ The definition of what constitutes BI software has begun to evolve. Although, in the short term, IDC is not expecting to change the taxonomy of the specific software tools included in the BI tools market, certain content access and analysis tools are beginning to be viewed as part of the overall BI architecture. In This Study This IDC study examines the business intelligence tools market for the period 2006– 2008. Worldwide market size is provided for 2008, with trends from 2006 and 2007. Revenue and market share of the leading vendors are provided for 2008, with trends from 2006 and 2007. This study also provides profiles of leading vendors. Filing Information: June 2009, IDC #218598E, Volume: 1 Business Intelligence and Data Warehousing Strategies: Excerpt
    • The vendor shares and competitive analysis contained herein update those found in Worldwide Business Intelligence Tools 2007 Vendor Shares: Query, Reporting, and Analysis, and Advanced Analytics Markets Stable in the Face of Economic Turmoil (IDC # 212921 , June 2008). The most recent BI tools market forecast can be found in Worldwide Business Intelligence Tools Software 2009–2013 Forecast: Preliminary Trends Suggest Strong Fundamental Demand Characteristics Tempered by Economic Downturn (IDC # 217443 , March 2009). Methodology Please note the following: The information contained in this study was derived from the IDC Software Market Forecaster database as of May 13, 2009. All numbers in this document may not be exact due to rounding. For more information on IDC's software definitions and methodology, see IDC's Software Taxonomy, 2009 (IDC # 216557 , February 2009). Business Intelligence Tools Market Definition IDC defines the BI tools market as being made up of two market segments: end-user query, reporting, and analysis (QRA) and advanced analytics: End-user query, reporting, and analysis . End-user query, reporting, and analysis software includes ad hoc query and multidimensional analysis tools as well as dashboards and production reporting tools. Query and reporting tools are designed specifically to support ad hoc data access and report building by either IT or business users. This category does not include other application development tools that may be used for building reports but are not specifically designed for that purpose. Multidimensional analysis tools include both online analytical processing (OLAP) servers and client-side analysis tools that provide a data management environment used for modeling business problems and analyzing business data. Packaged data marts, which are preconfigured software combining data transformation, management, and access in a single package, usually with business models, are also included in this functional market. Advanced analytics software . Advanced analytics software includes data mining and statistical software (previously called technical data analysis). It uses technologies such as neural networks, rule induction, and clustering, among others, to discover relationships in data and make predictions that are hidden, not apparent, or too complex to be extracted using query, reporting, and multidimensional analysis software. This market also includes technical, econometric, and other mathematics- specific software that provide libraries of statistical algorithms and tests for analyzing data. Although statistics products vary in sophistication, most provide base-level functions such as frequencies, cross-tabulation, and chi-square. This market also includes a specialized form of statistical software focused on functional areas such as the industrial design of experiments, clinical trial testing, exploratory data analysis, and high-volume and real-time statistical analysis. 2 #218598E ©2009 IDC
    • The BI tools market includes both standalone packaged software and embedded BI tools provided by some database management software vendors. An example of the latter is Microsoft SQL Server Analysis Services that comes embedded in the SQL Server database. In IDC's software taxonomy, these BI tools are part of the broader market called business analytics, which is depicted in Figure 1. FIGURE 1 IDC's Business Analytics Software Taxonomy, 2009 Source: IDC, 2009 SITUATION OVERVIEW The Business Intelligence Tools Market in 2008 As shown in Table 1, in 2008, the BI tools market grew 10.6% to reach $7.8 billion in worldwide license and maintenance revenue. This growth was slightly higher than expected in previously published IDC's forecast of the BI tools market. Table 1 also shows the different sizes and growth rates of the two primary segments of the BI tools market: QRA and advanced analytics. ©2009 IDC #218598E 3
    • TABLE 1 W orldwide Business Intelligence Tools Revenue by Segment, 2006–2008 Revenue ($M) Share (%) 2006–2007 2007–2008 2006 2007 2008 2006 2007 2008 Growth (%) Growth (%) Query, reporting, and analysis 5,045 5,678 6,263 81.1 80.7 80.5 12.6 10.3 Advanced analytics 1,179 1,358 1,522 18.9 19.3 19.5 15.2 12.1 Total 6,224 7,036 7,784 100.0 100.0 100.0 13.0 10.6 Source: IDC, June 2009 Performance by Geographic Region in 2008 Figure 2 shows the geographic breakdown of the BI tools market. Further details and analysis of specific regional and country-level trends and market shares are available from IDC. FIGURE 2 Worldwide Business Intelligence Tools Revenue Share by Region, 2008 Source: IDC, 2009 Performance of Leading Vendors in 2008 Table 2 displays 2006–2008 worldwide revenue, growth, and market share of vendors with greater than $10 million in worldwide BI tools revenue. For short profiles of the leading BI vendors, see the Vendor Profiles section. 4 #218598E ©2009 IDC
    • Figure 3 depicts the share of the top 10 largest vendors (by software revenue) in the BI tools market. Due to market consolidation, this share has grown from 58% in 2003 to 71% in 2008. However, 30% of the market continues to be occupied by a multitude of specialty vendors worldwide. Figure 4 depicts the BI tools market size and annual growth rates since 1993. Over this time period, the compound annual growth rate of the market has been 15%. Table 3 displays 2006–2008 worldwide revenue, growth, and market share of the leading vendors competing in the QRA segment of the BI tools market. The QRA market represented 80.5% of the total BI tools market and grew at 10.3%. Table 4 displays 2006–2008 worldwide revenue, growth, and market share of the leading vendors competing in the advanced analytics segment of the BI tools market. Advanced analytics represented 19.5% of the overall BI tools market and grew 12.1%. TABLE 2 Worldwide Business Intelligence Tools Revenue by Vendor, 2006–2008 Revenue ($M) Share (%) 2006–2007 2007–2008 Company 2006 2007 2008 2006 2007 2008 Growth (%) Growth (%) SAP 1,214 1,350 1,589 19.5 19.2 20.4 11.2 17.8 SAS 679 791 879 10.9 11.2 11.3 16.6 11.0 IBM 692 762 800 11.1 10.8 10.3 10.1 5.1 Oracle 510 597 701 8.2 8.5 9.0 17.0 17.5 Microsoft 480 555 649 7.7 7.9 8.3 15.6 16.9 MicroStrategy 249 266 282 4.0 3.8 3.6 6.6 6.0 SPSS 198 226 237 3.2 3.2 3.0 14.4 4.5 Information Builders 182 180 178 2.9 2.6 2.3 -1.1 -1.1 Inc. Actuate Corp. 99 111 106 1.6 1.6 1.4 12.5 -4.6 QlikTech 39 70 104 0.6 1.0 1.3 80.0 48.5 TIBCO 52 53 73 0.8 0.8 0.9 2.1 36.9 Panorama Software 38 57 62 0.6 0.8 0.8 52.0 8.1 Fujitsu 33 34 40 0.5 0.5 0.5 1.9 17.4 Arcplan 26 29 31 0.4 0.4 0.4 11.0 8.4 ©2009 IDC #218598E 5
    • TABLE 2 Worldwide Business Intelligence Tools Revenue by Vendor, 2006–2008 Revenue ($M) Share (%) 2006–2007 2007–2008 Company 2006 2007 2008 2006 2007 2008 Growth (%) Growth (%) Open Text 28 26 25 0.4 0.4 0.3 -4.3 -4.5 Teradata 20 23 24 0.3 0.3 0.3 11.0 4.4 Lawson Software 28 19 23 0.4 0.3 0.3 -32.1 23.2 CA 29 34 20 0.5 0.5 0.3 18.3 -42.6 Fair Isaac 7 13 18 0.1 0.2 0.2 79.8 36.8 Kalido 15 16 17 0.2 0.2 0.2 11.4 7.7 KXEN 8 12 16 0.1 0.2 0.2 41.0 39.3 Hitachi 15 13 15 0.2 0.2 0.2 -12.9 16.1 Targit 9 11 14 0.1 0.2 0.2 33.9 25.9 Infor 12 13 14 0.2 0.2 0.2 11.7 8.3 Datawatch Corp. 13 14 13 0.2 0.2 0.2 5.9 -6.5 Advizor Solutions 9 10 11 0.2 0.1 0.1 12.1 7.2 Unica Corp. 7 9 10 0.1 0.1 0.1 23.1 15.4 Other 1,533 1,741 1,832 24.6 24.7 23.5 13.5 5.2 Total 6,224 7,036 7,784 100.0 100.0 100.0 13.0 10.6 Notes: The difference in Oracle revenue in this study and last year's study is due to additional information that resulted in a correction to the 2007 value. In cases where acquisitions were completed in 2008, revenue from acquired companies has been appended to the current and past years for the given vendor. Source: IDC, June 2009 6 #218598E ©2009 IDC
    • FIGURE 3 W orldwide Business Intelligence Tools Combined Revenue Share of the Top 10 Largest Vendors, 2003–2008 80 70 60 50 (%) 40 30 20 10 0 2003 2004 2005 2006 2007 2008 Note: The calculation of the share of the top 10 vendors by software revenue in any given year is not backstreamed to reflect acquisitions. Source: IDC, June 2009 FIGURE 4 W orldwide Business Intelligence Tools Revenue, 1993–2008 9,000 35 8,000 30 7,000 25 Revenue ($M) 6,000 Growth (%) 5,000 20 4,000 15 3,000 10 2,000 1,000 5 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 BI tools Grow th Note: Any differences to historical figures are due to corrections made after receipt of additional market intelligence. Source: IDC, June 2009 ©2009 IDC #218598E 7
    • TABLE 3 Worldwide Query, Reporting, and Analysis Tools Revenue by Vendor, 2006–2008 Revenue ($M) Share (%) 2006–2007 2007–2008 Company 2006 2007 2008 2006 2007 2008 Growth (%) Growth (%) SAP 1,214 1,350 1,589 24.1 23.8 25.4 11.2 17.8 IBM 685 755 794 13.6 13.3 12.7 10.3 5.1 Oracle 502 588 692 9.9 10.3 11.0 17.2 17.7 Microsoft 462 533 623 9.2 9.4 10.0 15.4 17.0 SAS 297 352 373 5.9 6.2 6.0 18.3 6.0 MicroStrategy 249 266 282 4.9 4.7 4.5 6.6 6.0 Information Builders Inc. 182 180 178 3.6 3.2 2.8 -1.1 -1.1 Actuate Corp. 99 111 106 2.0 2.0 1.7 12.5 -4.6 QlikTech 39 70 104 0.8 1.2 1.7 80.0 48.5 Panorama Software 38 57 62 0.7 1.0 1.0 52.0 8.1 TIBCO 35 38 51 0.7 0.7 0.8 8.4 36.2 Fujitsu 27 28 33 0.5 0.5 0.5 2.1 17.5 Arcplan 26 29 31 0.5 0.5 0.5 11.0 8.4 Open Text 28 26 25 0.5 0.5 0.4 -4.3 -4.5 Lawson Software 28 19 23 0.6 0.3 0.4 -32.1 23.2 CA 29 34 20 0.6 0.6 0.3 18.3 -42.6 SPSS 24 21 19 0.5 0.4 0.3 -10.0 -9.3 Kalido 15 16 17 0.3 0.3 0.3 11.4 7.7 Targit 9 11 14 0.2 0.2 0.2 33.9 25.9 Infor 12 13 14 0.2 0.2 0.2 11.7 8.3 Datawatch Corp. 13 14 13 0.3 0.3 0.2 5.9 -6.5 Advizor Solutions 9 10 11 0.2 0.2 0.2 12.1 7.2 Other 1,025 1,155 1,186 20.3 20.3 18.9 12.7 2.6 8 #218598E ©2009 IDC
    • TABLE 3 Worldwide Query, Reporting, and Analysis Tools Revenue by Vendor, 2006–2008 Revenue ($M) Share (%) 2006–2007 2007–2008 Company 2006 2007 2008 2006 2007 2008 Growth (%) Growth (%) Total 5,045 5,678 6,263 100.0 100.0 100.0 12.6 10.3 Notes: The difference in Oracle revenue in this study and last year's study is due to additional information that resulted in a correction to the 2007 value. In cases where acquisitions were completed in 2008, revenue from acquired companies has been appended to the current and past years for the given vendor. Source: IDC, June 2009 TABLE 4 Worldwide Advanced Analytics Tools Revenue by Vendor, 2006–2008 Revenue ($M) Share (%) 2006–2007 2007–2008 Company 2006 2007 2008 2006 2007 2008 Growth (%) Growth (%) SAS 382 440 506 32.4 32.4 33.2 15.2 15.0 SPSS 174 205 217 14.8 15.1 14.3 17.8 6.0 Microsoft 18 22 25 1.6 1.6 1.7 20.0 15.0 Teradata 20 23 24 1.7 1.7 1.5 11.0 4.4 TIBCO 17 15 21 1.5 1.1 1.4 -10.4 38.7 Fair Isaac 7 13 18 0.6 1.0 1.2 79.8 36.8 KXEN 8 12 16 0.7 0.9 1.1 41.0 39.3 Unica Corp. 7 9 10 0.6 0.6 0.7 23.1 15.4 Oracle 9 9 9 0.7 0.7 0.6 4.9 3.5 Fujitsu 6 6 7 0.5 0.4 0.5 1.3 16.5 Portrait Software 4 6 7 0.4 0.5 0.4 52.1 7.1 Hitachi 8 6 7 0.7 0.4 0.4 -26.8 15.4 ©2009 IDC #218598E 9
    • TABLE 4 Worldwide Advanced Analytics Tools Revenue by Vendor, 2006–2008 Revenue ($M) Share (%) IBM 7 6 7 0.6 0.5 0.4 -5.9 3.1 Visual Numerics 6 7 6 0.5 0.5 0.4 15.0 -7.2 Inc. ANGOSS Software 5 6 6 0.4 0.4 0.4 14.4 2.2 Silicon Graphics 5 4 4 0.5 0.3 0.2 -19.6 -14.6 NEC 0 0 0 0.0 0.0 0.0 8.7 13.3 Other 495 569 632 42.0 41.9 41.5 15.0 11.0 Total 1,179 1,358 1,522 100.0 100.0 100.0 15.2 12.1 Notes: The difference in Visual Numerics' revenue in this study and last year's study is due to additional information that resulted in a correction to IDC revenue model. In cases where acquisitions were completed in 2008, revenue from acquired companies has been appended to the current and past years for the given vendor. Source: IDC, June 2009 Vendor Profiles The sections that follow highlight the performance of leading BI tools vendors in 2008. SAP 2008 marked the first year of combined BI tools revenue for SAP and Business Objects. The growth rates shown for SAP in this study represent organic growth because IDC methodology backstreams revenue of acquired companies. SAP derives all of its BI tools revenue from the QRA market segment. In 2008, the company's SAP BusinessObjects portfolio benefited from the vastly enlarged sales force and was able to sell BI tools to SAP's applications customers. The company ran into some resistance from customers to its pricing structure but was able to overcome this challenge partly through improved communication about its BI tools portfolio road map. Although SAP's rationalization of acquired BI tools has not been completed, the company is well positioned to fulfill the future needs of BI technology purchasers. SAP is also on the forefront of redefining the functionality of a BI solution by integrating traditional QRA tools with those for content access and analysis, collaboration, and event monitoring. The one omission from SAP's BI portfolio is a product for advanced analytics. In 2008, SAP partnered for this functionality with SPSS. It will remain to be seen if a partnership strategy is enough to address the needs of its customers for more advanced analytics. 10 #218598E ©2009 IDC
    • SAS SAS was the second-largest BI tools vendor in 2008 and the only one that derives at least 40% of its BI tools revenue from both the QRA and advanced analytics markets. SAS remains the overwhelming leader in the advanced analytics market. However, its momentum in QRA tools stalled in 2008. During tough economic times, most companies revert to their core competency, which for SAS includes advanced analytics and data integration software. As the economy is expected to start improving in the second half of 2009, the challenge for SAS will be to broaden its footprint within its existing client base. SAS' strength in advanced analytics also contributes to its strong position in various analytic applications market segments of the broader business analytics market. These analytic applications are all built using advanced analytics functionality, which few of its competitors are able to match. IBM IBM was the third-largest BI tools vendor in 2008, which marked the first year of combined BI tools revenue for IBM and Cognos. The growth rates shown for IBM in this study represent organic growth because IDC methodology backstreams revenue of acquired companies. It seems that IBM was not as successful as its closest competitors in being able to execute on Cognos BI tools sales by the expanded IBM sales force. IDC speculates that unlike SAP and Oracle, which have substantial applications software businesses, IBM's focus on infrastructure and middleware software and professional services means that selling to large number of business end users is not a core competency of IBM's non-Cognos sales force. It remains to be seen if IBM regains a higher growth pattern with an additional year of integration of the Cognos organization. In the meantime, IBM continues to bring to market various business analytics products that in aggregate represent one of the broadest portfolios of tools and analytic applications not only for traditional BI but also for content access and analysis, event monitoring, data integration, and data warehousing. Oracle In 2008, Oracle reaped the benefits of its investment in Oracle Business Intelligence Enterprise Edition (OBIEE) — the company's BI platform and its different modules for query, reporting, and analysis. OBIEE was built on the technology acquired from Siebel and has emerged as a growth driver in the overall Oracle portfolio. At the same time, we estimate that Oracle's 2007 acquisition of Hyperion has only marginally contributed to the company's BI tools revenue. The maintenance from Hyperion's legacy BI tools products does continue to contribute to Oracle's BI tools revenue, but the primary focus of the Hyperion product line remains on financial performance and strategy management applications, where Oracle holds the market leading position. Oracle is well positioned to continue to benefit from OBIEE by selling it to its existing vast applications and database customer base. ©2009 IDC #218598E 11
    • Microsoft Microsoft continued its strong growth in the BI tools market in 2008. The company's primary products in this market include SQL Server Analysis Services and SQL Server Reporting Services. Microsoft's packaging of BI tools within SQL Server continues to be an attractive option for its customers. Note that IDC does not allocate any revenue derived by Microsoft from Excel or SharePoint Server to the BI tools market. Yet most of Microsoft's customers that purchase SQL Server for their BI needs also frequently purchase or use these related products. As of January 2009, Microsoft's PerformancePoint Server ceased to be a separate product. Instead the scorecards and dashboards that were referred to as PerformancePoint Monitoring and the query and analysis functionality (technology acquired by Microsoft from ProClarity) became a component of the SharePoint Server. Going forward, IDC may be reevaluating its methodology for allocating BI software revenue to Microsoft. For more information on Microsoft's realignment of the PerformancePoint Server product, see Another Step Toward Pervasive Business Intelligence: Microsoft Realigns BI Product Portfolio and Its Internal BI Organization (IDC #lcUS21646809, January 2009). Future Outlook Several interlinked trends in the BI market are likely to evolve over the coming years: ִ Standardization and the expected eventual commoditization of core reporting, dashboard, and OLAP functionality. This core QRA technology, which still forms the bulk of the revenue for BI technology vendors, has been available for decades. Although substantial feature and functionality improvements have been made to this software over the years, the lack of differentiating features will continue to drive down the cost of this software. The logical conclusion will be the broad availability of open source or very low-cost commercial reporting, dashboard, and OLAP technology with a shift in spending from licenses to support services. ִ Despite the previously described long-term trend toward commoditization of core QRA tools, there will be an intermediate-term opportunity for some vendors to differentiate their ad hoc query and multidimensional analysis tools based on features and functionality that put a premium on simplicity and performance. This may include use of in-memory deployment techniques, interactive visualization, or associative data management structures. It is interesting to note that the two fastest-growing QRA vendors (QlikTech and TIBCO Spotfire) both provide in- memory QRA tools. However, even these tools will find growing competition from the adjacent market of content access and analysis, which continues to encroach on multidimensional analysis requirements of end users with a different set of technologies. ִ Regardless of the specific BI technology, in the short term, the executive mandate for most organizations will be to do "more with less." Although we continue to see healthy demand for BI functionality from business end users, IT departments and business end users alike are being asked to curtail costs. As a result, incremental, small purchases, and deployment of BI technology will 12 #218598E ©2009 IDC
    • dominate the market in the short term. This trend is also likely to push more organizations toward SaaS and outsourced BI and analytics solutions that have a pricing model, which enables better allocation of direct costs to current profitability. Additionally, IDC is beginning to see evidence of greater interest in outsourcing of advanced analytics processes. ִ Adoption of advanced analytics to improve decision-making processes related to a variety of business processes will increase, thus driving the continued, faster growth rate of this segment of the BI tools market. The need to create and easily modify predictive models will increase as organizations deal with a heightened level of uncertainty. ִ The next wave of innovation in the BI market will come from the expansion of the overall business analytics solution to include functionality for supporting: ִ Unified access to and analysis of structured data and unstructured content ִ Collaboration during the process of decision making ִ Capture of knowledge learned in the context of decision making ִ Intelligent process automation, which combines BI functionality with that of business process management For additional trends related to these four points of convergence of BI with related technology, see Decision Management: A Strategy for Organizationwide Decision Support and Automation (IDC #218353, May 2009). For additional information on the future outlook of the market as well as the 2009– 2013 forecast, see Worldwide Business Intelligence Tools Software 2009–2013 Forecast: Preliminary Trends Suggest Strong Fundamental Demand Characteristics Tempered by Economic Downturn (IDC #217443, March 2009). Essential Guidance In November 2008, IDC completed a study titled Improving Organizational Decision- Making Through Pervasive Business Intelligence: The Five Key Factors That Lead to Business Intelligence Diffusion (IDC white paper #215157, November 2008). The research focused on defining pervasive BI based on six indicators, the evaluation of the level of pervasiveness of BI within organizations, and the identification of five factors that managers can influence to improve diffusion of BI. In April 2008, IDC conducted a research study with KMWorld magazine titled Decision Management Survey Shows Need for Better Collaborative Decision-Making and Knowledge Capture Support (IDC #218277, May 2009). Along with other ongoing market research efforts, these latest studies suggest the following guidance for technology users and vendors. Organizations should continue with BI and analytics projects that can help reduce costs or retain customers. There is growing evidence that more pervasive BI and analytics have a direct impact on competitiveness. Better decision making is more ©2009 IDC #218598E 13
    • important when resources become restricted during a recession, so BI and analytics projects will still appeal to management. However, justifying large capital outlays for software will be challenging unless short- term benefits can be directly correlated with the investment. As more incremental projects are undertaken, it will be important to execute these projects within the long- term strategic plan of organizationwide decision management. BI technology vendors should begin to actively address customer needs for convergence of BI functionality with that of content access and analysis, collaboration, and knowledge capture and learning. See Decision Management: A Strategy for Organizationwide Decision Support and Automation (IDC #218353, May 2009) for additional guidance regarding this market trend. As organizations increasingly deploy advanced analytics and QRA tools, they will discover there are benefits from integrating the two. The results of models built with advanced analytics tools need to be disseminated using QRA tools. Conversely, content from models that is evaluated using QRA tools can uncover new requirements for model builders. BI technology users and vendors should ensure that there is greater integration and availability of both of these tool sets within their BI portfolios. One of the ways some vendors will capitalize on the trend for core QRA technology commoditization will include increased offerings of SaaS BI tools, with their associated subscription pricing model. In addition to simply porting QRA tools to the SaaS model, greater value-add will be available from analytics as service solutions, whereby all or some of the analysis of the data will be outsourced to third parties. In the long term, BI tools software vendors should consider offering a portion of their solutions through a SaaS delivery model, some of which will likely be delivered through a private or public cloud. However, we do not expect en masse migration to SaaS or cloud-based BI tools software deployments over the next five years. 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 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved. 14 #218598E ©2009 IDC