Gartner: Emerging technology analysis_213778

Gartner for Business LeadersPublication Date: 17 June 2011 ID Number: G00213778Emerging Technology Analysis: Visualization-BasedData Discovery ToolsDan Sommer, Rita L. Sallam, James RichardsonAlthough still a small part of the market, visualization-based data discovery tools havefar-reaching implications for how business information is consumed, and will take anincreasingly large stake as the front end for analysis, querying, exploration and"dashboarding." Business intelligence (BI) vendors are either proactively or reactivelyshaping their strategies around this paradigm.Key Findings Lighter-footprint data discovery tools are one of the fastest-growing areas of BI, mainly due to their self-service capabilities; Gartner expects data discover tools to outgrow the overall market by a factor of three until 2015. Because they are light in infrastructure and fast to deploy with short sales cycles, data discovery tools are spreading to where traditional BI tools find it hard reach. Most large vendors are reacting, belatedly, and are reshaping their BI front-end capabilities to address the data discovery tool paradigm. In the longer term, this might close off some opportunity for todays independent leaders. Data discovery will be a $1 billion market in its own right as soon as 2013.Recommendations Vendors should explore ways of embracing information aggregators and market researchers as an additional sales channel for visualization-based data discovery. This will enable entry into new accounts and user constituents. Vendors should keep portions of the application program interface (API) open, enabling value-added retails (VARs) to build vertical and horizontal add-ons. This will make the data discovery tool more entrenched in accounts, without driving up consulting overhead, and help flank competition. Service providers should tap into the fear IT organizations have of the disconnected "rogue" data discovery information islands separate from the "sanctioned" IT infrastructure. Provide service offerings targeted at information and organizational governance best practices to help customers overcome this challenge.© 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or itsaffiliates. This publication may not be reproduced or distributed in any form without Gartners prior written permission. Theinformation contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims allwarranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors,omissions or inadequacies in such information. This publication consists of the opinions of Gartners research organizationand should not be construed as statements of fact. The opinions expressed herein are subject to change without notice.Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice orservices and its research should not be construed or used as such. Gartner is a public company, and its shareholders mayinclude firms and funds that have financial interests in entities covered in Gartner research. Gartners Board of Directorsmay include senior managers of these firms or funds. Gartner research is produced independently by its researchorganization without input or influence from these firms, funds or their managers. For further information on theindependence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity" on its website,http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp

Service providers should look at data discovery software as an enabler to sell tactically into organizations, which might lead to larger outcome-based transformational projects down the line, once a presence is established. End-user organizations should adopt use as a way to improve the success of their BI program, because data discovery tools, owing to their ease of use, spread adoption of BI and enable users to do more-advanced types of analysis for greater business impact. Instead of trying to prevent the spread of data discovery tools, BI leaders in end-user organizations position it as IT-sanctioned analyst "sandboxes"/playgrounds. Users of these playgrounds will make discoveries that should be shared with the broader user community. These new models can serve as rapid prototypes for sanctioned corporate data models. In this situation, centralized BI teams should facilitate requests for new information views and data models in the corporate standard data warehouse and BI platform. This tighter collaboration between IT and analysts will help prevent data discovery tools turning into a plethora of "rogue" data mart solutions.Publication Date: 17 June 2011/ID Number: G00213778 Page 2 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

TABLE OF CONTENTSStrategic Planning Assumption ..................................................................................................... 4Analysis ....................................................................................................................................... 4 Technology Description.................................................................................................... 4 Technology Adoption ....................................................................................................... 4 Factors Driving Adoption ..................................................................................... 4 Factors Inhibiting Adoption .................................................................................. 5 Scope of Adoption ............................................................................................... 5 Technology Impacts....................................................................................................... 11 Impact on Buyers .............................................................................................. 11 Impact on Vendors and Markets ........................................................................ 11 Usage Impact ....................................................................................... 13 Market Impact ....................................................................................... 13 Conclusion..................................................................................................................... 13Recommended Reading ............................................................................................................. 14LIST OF TABLESTable 1. Summary of Main Vendors in the Data Discovery Space ................................................. 7Table 2. Differences Between Vendors ....................................................................................... 11LIST OF FIGURESFigure 1. Data Discovery, Forecast Growth Rates ........................................................................ 6Figure 2. Data Discovery Market Share ...................................................................................... 12Figure 3. Data Discovery Size, Forecast ..................................................................................... 13Publication Date: 17 June 2011/ID Number: G00213778 Page 3 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

STRATEGIC PLANNING ASSUMPTIONData discovery tools will grow triple the rate of the overall BI market until 2015.ANALYSISTechnology DescriptionBefore the usage of BI platforms became widespread, a set of tools of personal or workgroupnature existed aimed for dissemination and analysis of data. A number of cube online analyticalprocessing-based products, such as ProClarity, Panorama, PowerPlay and Brio provided ameans for analysts to explore multidimensional data, while Microsoft Excel pivot tablesdemocratized the concept for information workers. However, line-of-business silos made it difficultto do enterprise or cross-functional analysis. Much a result of this difficulty, market consolidationhappened, and notion of the BI platform usually allied with enterprise data warehousing andcommon enterprise standards became the norm, shifting more of the responsibility away frombusiness users to IT.Often, use of personal or workgroup tools was not encouraged either by vendors that had beenselling them that wanted to move their customers to more-expansive platforms, or by the ITorganizations mandating the usage of a centralized standard. Excel continued to proliferate, fillingtactical needs. In the past five years, much as a reaction of that centralization, data discoverytools have emerged strongly as a new category. A new breed of vendors banked on theopportunity to plug the void in the market for easy-to-use data analysis tools, providing BIcapabilities suitable for workgroup or personal use (that is, often without IT involvement), where akey criterion is usability, flexibility and control over how to model and build content without havingto go to IT. These data discovery alternatives to traditional BI platforms offer highly interactiveand graphical user interfaces built on in-memory architectures to address business users unmetease-of-use and rapid deployment needs.Visualization-based data discovery tools are characterized by three attributes: A proprietary data structure to store and model data gathered from disparate sources, which minimizes reliance on predefined drill paths and dimensional hierarchies A built-in performance layer that obviates the need for aggregates, summaries and precalculations An intuitive interface, enabling users to explore data without much trainingData discovery tools fall into two groups: those that take an interactive visualization approach,and those that take a search-based approach. Both groups provide the three attributes describedabove but employ different technologies and often have different use cases (see "The Rise ofData Discovery Tools"). This document focuses on visualization-based data discovery, the mostwidespread and mature of the two.Technology AdoptionFactors Driving Adoption Increasing business unit buying of BI/performance management/analytics — Because of: (1) cutbacks in IT budgets, shifting necessary investments out to business units; and (2) perception of needs not being met from the BI tools IT has provided. Business units are the prime constituency for data discovery tools.Publication Date: 17 June 2011/ID Number: G00213778 Page 4 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Small and midsize (SMBs) businesses with a scarcity of resources and skills often find data discovery tools enough to meet their BI needs. Time to value — Light footprint data discovery tools can be deployed more quickly than larger platforms. Often, sales organizations can do proof-of-concepts much more quickly, shortening the sales cycles too. Rapid prototyping — An upswing in the adoption of agile methodologies has set the stage for rapid prototyping to be done in data discovery tools. Improvements in computer processing and the move to 64 bit, enabling data discovery tools to store and manipulate large amounts of information in-memory, freeing it from underlying information infrastructures. Usability — Strong visualization capabilities, intuitive user interfaces and fast query times. Usability is the No. 1 selection criterion when choosing BI tools, according to "Magic Quadrant for Business Intelligence Platforms." Viral spreading — Users who like working in the data discovery tools recommend it to their peers and take it with them when they move to new roles and responsibilities.Factors Inhibiting Adoption BI standardization initiatives: Many organizations are of the view that they have far too many tools and are looking to rationalize in the portfolio to go ahead with one or two centrally governed BI standards. Centrally run BI initiatives, or a steering group such as a BICC, sponsored by the CIO or CFO, often tries to stop the proliferation of rogue data discovery tools to manage skills and costs and try to keep control centrally. Tools outside that standard are "forbidden" in the organization and in its business units. This trend rarely benefits the independent vendors that focus on data discovery tools. However, Gartner is seeing (and recommending) a portfolio standardization approach, which enables organizations to take advantage of newer technologies (of which data discovery tools are one) within a managed-solution architecture. Loose coupling with the official information infrastructure: Due to many data discovery tools inherent ability to work independently, it is often decoupled from "official" cleansed and sanctioned underlying metadata, business glossaries and data stores. Data stewards, therefore, try to stop the spread of data discovery tools to avoid another "spread mart" problem and many versions of the truth. Regulation, prompting stricter transparency and data quality. Costs: While a few data discovery tools are inexpensive for one or a few users, costs can be high, especially with named-user pricing, when they spread to more users. Alternative technologies: While enjoying great momentum, its not certain that visualization-based data discovery tools will "win." Packaged analytics delivered through software as a service or on-premises, if flexible and usable enough, pose a viable alternative to users, as do search-based data discovery tools such as Endeca.Scope of AdoptionA mix of the economic situation not favoring large new projects, technological innovation anddisillusionment with what IT has provided centrally have driven the trend for more line-of-businessbuying, often bypassing IT. Beneficiaries are in-memory analytics and light-footprint/easy-to-usePublication Date: 17 June 2011/ID Number: G00213778 Page 5 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

tools that are quick to implement. Here, data discovery tools fit the bill, and as an emerging area,market adoption of data discovery tools has been rapid.As Figure 1 shows, data discovery grew double-digits even in the crisis year of 2009, and in 2010growth reached 37%. A continued strong growth pace is also expected from 2011 through 2015,with a gradual tapering off of growth as the area matures.Figure 1. Data Discovery, Forecast Growth RatesSource: Gartner (June 2011)Table 1 provides a short summary of the main vendors in the data discovery space.Publication Date: 17 June 2011/ID Number: G00213778 Page 6 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Table 1. Summary of Main Vendors in the Data Discovery Space Estimated Software Geographic/Vertical/Horizontal Vendor Profile, Positioning and Strategy Revenue, Scope 2010 QlikTech The biggest vendor in the data discovery $205.1 million 60% of sales out of Western space with a 2010 IPO injecting capital for Europe. Cross-industry further expansion and growth. With "land deployments. and expand," the company is making small entry into organizations, with the aim to scale out at a later stage. The company is adding more enterprise focus to complement its SMB core competence. Founded in Sweden but headquartered in the U.S. Tibco Spotfire Tibco Spotfire is the second-largest data $70.5 million Manufacturing and discovery vendor, trying to target the pharmaceuticals the dominating "analysis gap," between traditional BI sectors. Majority of sales in North platforms, packaged apps and statistical America. tools, where users are often forced to turn to spreadsheets for their analysis needs. What differentiates Spotfire is that its slightly higher in analytic application development sophistication and targets more-advanced analysts than QlikTech and Tableau. It also integrates with Tibco BAM to support real-time data discovery. Tibco Spotfire directs small deals to channel partners and primarily targets larger organizations with its direct sales force.Publication Date: 17 June 2011/ID Number: G00213778 Page 7 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Estimated Software Geographic/Vertical/Horizontal Vendor Profile, Positioning and Strategy Revenue, Scope 2010 Tableau Tableau was the fastest-growing BI $38 million In the middle of a geographic vendor in 2010, at 113%. It is an outlier expansion, more than 80% of when it comes to positive customer sales are in North America. satisfaction scores in the BI platform Magic Quadrant. Tableau connects better to existing information infrastructures than some of its competition. It is optimized for direct MDX query against multidimensional data sources such as MSAS and Essbase. Tableaus newly added support for in-memory processing places it squarely in the data discovery space. SAS JMP (for business visualization) is $35 million Dominant sector is high-tech positioned for the business analyst just manufacturing, followed by life below SASs traditional user base of sciences. However, JMP has a statisticians. It is more advanced data presence in all industries. exploration driven than dashboards and ad hoc query, and, hence, doesnt proliferate as much as some of its competition.Publication Date: 17 June 2011/ID Number: G00213778 Page 8 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Estimated Software Geographic/Vertical/Horizontal Vendor Profile, Positioning and Strategy Revenue, Scope 2010 Microsoft PowerPivot Microsofts portion of the market is difficult $25 million Microsoft in general has a strong to measure because PowerPivot is position in emerging markets, bundled as part of 3 products: SQL especially Asia/Pacific, so as it Server, SharePoint and Office. But since it spreads, PowerPivot will get a requires the 2010 versions of these strong foothold there. products (actually SQL Server 2008 R2), Gartner estimates the market presence to be small, but growing, as more organizations upgrade to Office 2010 and SharePoint 2010. PowerPivot still lacks the compelling front end many of the competitors have, which makes it borderline to qualify as a data discovery tool. But the vendor has stated plans to add interactive visualization in the upcoming "Project Crescent" release. MicroStrategy Visual MicroStrategy is a new entrant in the data Released in MicroStrategys two strongest Insight discovery space, and the footprint of May 2011 industry sectors are retail and Visual Insight is insignificant, but growing. communications The current deployment requires the full MicroStrategy product suite and is included as a feature of MicroStrategys flagship product, Report Services. It is a way for MicroStrategy to fend off stand- alone data discovery vendors in its customer accounts.Publication Date: 17 June 2011/ID Number: G00213778 Page 9 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Estimated Software Geographic/Vertical/Horizontal Vendor Profile, Positioning and Strategy Revenue, Scope 2010 Advizor Solutions Advizor is positioned as a departmental Less than $10 Sales in mainly North America discovery and analysis solution for million and Japan. business people, but is smaller in revenue The company has a long- and has less brand equity than some of its standing OEM relationship with bigger rivals. It has tightly integrated in- Information Builders and with memory management, interactive leading vendors in network visualization, and predictive modeling. security and intrusion, call centers, healthcare, energy, workforce analytics, campaign analytics and higher education. IBM IBM is expected to enter into the space Not yet Not yet sold with a desktop exploration tool, which also released includes planning and write-back capability. It is as much a reactive move to fend off competitors as it is to find new users.Source: Gartner (June 2011)Publication Date: 17 June 2011/ID Number: G00213778 Page 10 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Other vendors to name (that have an interactive visualization user interface and in-memoryprocessing) with small but growing revenue: IDBS Inforsense, Vision I/O DecisionIris, InetsoftStyle Scope and Panopticon EX and Quiterian.Technology ImpactsImpact on BuyersWhat began as a market buying trend in 2010 has become a bifurcation of the market into twodistinct segments. While IT is increasingly stack-centric in its behavior (see "Market Trends:Business Intelligence, Worldwide, 2011-2014"), business users are increasingly turning to datadiscovery vendors. The main difference between the traditional BI platform and data discoverytool is described in the "Magic Quadrant for Business Intelligence Platforms" and in Table 2.Table 2. Differences Between Vendors Traditional BI Platforms Data Discovery Platforms Key Buyers IT Business Main Sellers Megavendors, large independents Small, fast-growing independents Approach Top-down, IT-modeled (semantic layers), Bottom-up, business-user- query existing repositories mapped (mashup), move data into dedicated repository User Interface Report/KPI dashboard/grid Visualization Use Case Monitoring, reporting Analysis Deployment Consultants UsersSource: Gartner (June 2011)The chasm between these segments has deepened, because business users find the benefits ofusing data discovery tools so compelling that they make this choice despite the risk of creatingfragmented silos of data, definitions and tools. This has accentuated the need for IT organizationsto back away from a single-minded pursuit of standardization on one vendor to a more pragmaticportfolio approach. Specifically, IT has been challenged to put in place new enterprise informationmanagement architectures, development methodologies, and governance processes thataccommodate and bridge the gap between the different buying centers, architectures,deployment approaches, and use cases of both segments into an enterprise BI portfolio that canmeet both business user and enterprise requirements (see "Magic Quadrant for BusinessIntelligence Platforms," "Agile Techniques Augment But Do Not Replace Business Intelligenceand Data Warehouse Best Practices" and "Business Intelligence Standardization; Better aPragmatic Portfolio Than an Unworkable Single Vendor Solution").Impact on Vendors and MarketsFigure 2 provides an estimated breakout of vendor share, when isolating revenue to datadiscovery tools only. Many vendors dont break data discovery revenue out or embed it in otherproducts, so this is a high-level Gartner estimation. What can be derived is that QlikTech holdshalf of the market, and QlikTech, Spotfire, Tableau and JMP combined hold four-fifths of theestimated market. The remaining 19% of the market is split between some smaller vendors, plusMicrosoft.Publication Date: 17 June 2011/ID Number: G00213778 Page 11 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Figure 2. Data Discovery Market ShareSource: Gartner (June 2011)Small vendors dominate this scene, and will continue to do so for the next couple of years. Thesuccessful QlikTech IPO and the fast growth of Tableau Software during 2010 is openingopportunities for other small vendors to get access to capital from investors, so chances are wellsee new names popping up too. Until recently, the larger BI vendors have been fairly absent. Butsomething is happening now. As data discovery tools are quickly setting the norm for what isexpected in usability, deployment and fast proof of concepts, the larger vendors in the BI spaceare following suit. SAPs Business Explorer as a front end to BusinessObjects enablesrudimentary search-based data exploration but still lacks a visualization-based data discoverytool. IBMs Cognos Express will be complemented by a desktop data exploration tool that was inthe labs at the time of publishing this report. Microsoft has come farthest with PowerPivot. It stilllacks the compelling front end many of its smaller competitors have, but that is expected to beaddressed in the next release of SQL Server, which includes Project Crescent for visualization.Gartner estimates that Microsofts presence in this space is relatively small now, but will reachcritical mass as adoption of the latest incarnations of SQL Server, SharePoint and Officeincreases.Oracle is the one large vendor absent from this area, as its focus lies on its suite of prepackagedreport-centric analytic applications (traditional reports and dashboards) to reach further intobusiness user constituents. Hence, it would not be wildly speculative to expect Oracle to make anacquisitive move to reach parity, or making it a top development priority. SAS is in the game withJMP. Also MicroStrategy, best-known for enterprise BI deployments on top of large datawarehouses, now has data discovery functionality through its Visual Insights product. InformationBuilders has an OEM agreement with Advizor and search-based discovery through WebFocus. Intime, these multivendor initiatives will likely close off some opportunity for the current independentleaders in the space, as IT promotes the data discovery alternative provided by the same vendoras their BI standard out to business units, which might perceive those data discovery tools to be"good enough."Publication Date: 17 June 2011/ID Number: G00213778 Page 12 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Usage ImpactThese vendor initiatives, and the rapid adoption from end users, have the potential to shake theBI market to its foundations. First, it will help change the way people consume BI. Asorganizations look to move past measurement to analysis for greater business impact, discoverybecomes an increasingly significant portion versus managed reporting that dominates BIconsumption today. Essentially, whereas now the dominating use case for BI is managedreporting — potentially as much as 90% — data discovery will take a much bigger stake of use —claiming possibly as much as 40% of the way people consume BI by the end of the forecastperiod.Market ImpactBy the end of 2013, data discovery tools are expected to have surpassed $1 billion in softwaresales, and growth is then expected to taper off somewhat but will remain in the double digits. Bythen, very likely, large vendors will have a bigger stake of the market share. This might hampergrowth of smaller vendors that will find it more difficult to reach into departmental accounts wherethere is a larger BI vendor as standard. Overall, were expecting a compound annual growth rate(CAGR) of 30% from 2010 through 2015. As a result, it will claim an increasingly large stake of BIrevenue. In 2010, data discovery tools represented 4% of the total BI platform market. By 2015,the data discovery market is expected to reach $1.6 billion, which is projected to be 10% of the BIplatform market.Figure 3. Data Discovery Size, ForecastSource: Gartner (June 2011)ConclusionFor the past couple of years data discovery platform vendors have experienced tremendousgrowth, and most of their success has been at the departmental level with smaller user and datadeployments. In 2010, data discovery tool deployments grew and became more complex.Publication Date: 17 June 2011/ID Number: G00213778 Page 13 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Megavendors and traditional BI vendors will accelerate their response to the success of datadiscovery platforms, which will likely lead to further industry consolidation, putting pressure ondata discovery vendors to continue to improve their enterprise capabilities and to innovate. Themarket will ultimately coalesce, with future leading vendors providing ways to bridge the chasmbetween business users and IT in enterprise deployments. We expect a market CAGR of 30%over the coming five years.RECOMMENDED READINGSome documents may not be available as part of your current Gartner subscription."Hype Cycle for Performance Management, 2010""Hype Cycle for Business Intelligence, 2010""Magic Quadrant for Business Intelligence Platforms"EvidenceTo support findings, apart from the already-published research, we have used internal data andmodels gathered throughout the market-sizing process for 2010 and previous years. We havealso utilized survey data from the business intelligence Magic Quadrant, and looked at the mostrecent published forecast estimates.Publication Date: 17 June 2011/ID Number: G00213778 Page 14 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

REGIONAL HEADQUARTERSCorporate Headquarters56 Top Gallant RoadStamford, CT 06902-7700U.S.A.+1 203 964 0096European HeadquartersTamesisThe GlantyEghamSurrey, TW20 9AWUNITED KINGDOM+44 1784 431611Asia/Pacific HeadquartersGartner Australasia Pty. Ltd.Level 9, 141 Walker StreetNorth SydneyNew South Wales 2060AUSTRALIA+61 2 9459 4600Japan HeadquartersGartner Japan Ltd.Aobadai Hills, 6F7-7, Aobadai, 4-chomeMeguro-ku, Tokyo 153-0042JAPAN+81 3 3481 3670Latin America HeadquartersGartner do BrazilAv. das Nações Unidas, 125519° andar—World Trade Center04578-903—São Paulo SPBRAZIL+55 11 3443 1509Publication Date: 17 June 2011/ID Number: G00213778 Page 15 of 15© 2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Gartner: Emerging technology analysis_213778

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