BI market still faces challenges

2002 proved to be just as challenging as 2001 for most Business Intelligence (BI) tools vendors, according to IDC. However, despite tough economic conditions, the BI market continues to present good opportunities.

  • E-Mail
By  Matthew Southwell Published  July 22, 2003

2002 proved to be just as challenging as 2001 for most Business Intelligence (BI) tools vendors, according to IDC. However, despite tough economic and business conditions, the analyst house reports that the European BI market continues to present good opportunities to those vendors that offer the right products and solutions and address the market using the right communication and go to market strategies.

Furthermore, IDC suggests that 2002 was the first year when BI vendors began to see a significant increase in analytic applications revenue at the expense of revenue for traditional BI tools.

"IDC believes that the future of the BI market will be affected by the continuation of this trend toward analytic applications, and the likely result will be a decline in BI tools market shares for the larger BI vendors. This opens up new opportunities for pure play BI tools vendors,” says says Christina Steensboe, programme manager with IDC’s European software group.

“However, these specialty BI tools vendors will not have a free ride, because the current market leaders will shift their focus to analytic applications, although this is likely to take several years, while competition from the database vendors that bundle BI tools with the database will continue," she adds.

According to IDC, BI tools have become somewhat commoditised, but there is still room for product improvement in areas such as collaboration support, security management, seamless access to relational and multidimensional data sources, and scalability and performance. There is also a continued need to educate the market on the benefits of BI.

Locally, the BI market is still relatively embryonic, with SAS Institute predicting that the UAE and Saudi Arabia will generate only US$15 million worth of sales during 2003.

“This is just the start because it is primarily extraction tools and reports. The market will continue to bubble and grow for the next two years,” says Basel Tutunji, Middle East country manager for SAS Institute.

However, the Middle East market will pick up and Torben Pedersen, IDC’s MENA software & services analyst, believes the growing investment from BI vendors in the region will spur growth. “We are definitely seeing investment in the local BI market now, especially from the dedicated BI vendors,” he says.

“The future looks good for the BI market and we [Crystal Decisions] are looking at a US$2-3 million revenue stream for ourselves in the next 12 months,” confirms Trevor Caddy, regional director for EMEA at Crystal Decision.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code