Analytic applications market remains healthy

According to IDC, the Western European market for analytic applications experienced a ‘healthy’ growth of 13% between 2000 and 2001.

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By  Greg Wilson Published  October 28, 2002

Regardless of tough market conditions, the demand for analytic applications remains strong. According to IDC, the Western European market for analytic applications experienced a ‘healthy’ growth of 13% from 2000 to 2001, however it is significantly lower than the 25% the market showed in the previous year.

Furthermore, IDC predicts 2001–2006 compound annual growth rate (CAGR) of 12% for the Western European analytic applications market, resulting in US$1.4 billion in market revenue by 2006.

“At a time when organisations are seeking to gain insight into and optimise their businesses, the interest in and demand for analytic applications will remain”, says Christina Steensboe, Program Managers with IDC’s European Business Intelligence & Analytic Application research group.

The analytic applications market has attracted vendors from all corners of the software industry including enterprise resource management (ERM), business intelligence (BI) tools, supply chain management, customer relationship management, data integration, and vendors that provide specialised analytic applications as their core business. These groups of vendors follow very different strategies for supplying their analytic applications — some provide broad horizontal suites spanning all three segments of analytic applications, whereas others offer very specialised products aimed at addressing a specific issue, for example risk management in a particular industry such as finance.

The different groups of vendors each have highlight different selling points — the BI tools and pure-play analytics vendors should underline their history in the analytics area and the best-of-breed approach; ERM vendors should focus on the suite approach; and niche vendors should emphasise their deep domain expertise in a particular analytics area or industry.

There are large differences in the 2001 performance of the top vendors. In terms of growth rates, the top vendors showed either sold growth above 15% or negative growth.

“Companies are increasingly implementing analytic applications to analyse and understand business information, including data about the financial performance of the company, processes, customers, suppliers, and employees. Analytic applications provide an opportunity to draw data from information systems throughout the company and turn the data into actionable strategic information enabling decision-makers to make faster and better decisions,” explains Steensboe.

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