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BI market shifts and the move away from traditional BI usage

Monday, January 18, 2010

Despite all of the spending cuts taking place due to the economic downturn, many BI solution providers are announcing that 2009 was a growth year and that their customer base and overall product use has increased.  It seems as if, although organizations are tightening their belts, the importance of BI has not been overlooked.  Companies are considering business intelligence as one of their top priorities and in turn, realizing that more business visibility leads to greater business success. Overall, what this means is that the promise of business value through BI use is starting to become a reality in organizations and that businesses in general are beginning to realize that without a way to analyze disparate data, their ability to compete in today’s market place is bleak.

In addition to the shift in attitude and continual increase of BI adoption, the market itself is slowly changing.  Solution providers are beginning to diversify their offerings and are becoming more flexible.  One recent example is the expansion of Jaspersoft’s Enterprise addition to the mix of traditional open source BI.  Although open source continues to remain free for the developer community, because of the ability to develop solutions more quickly, open source BI providers are starting to focus on commercial offerings to give companies the benefits of continual improvements to solutions and easy maintenance with lower price points than their traditional BI solution provider counterparts. 

Aside from looking at what vendors are doing, it becomes interesting to note that open source BI adoption is also increasing within companies that are looking for added business value. This added competition helps push traditional BI vendors to the next level in their offerings as well – whether this is something as simple as subscription based licensing models (for instance, in the case of SAP that is slowly moving in that direction) or the increasing use of in-memory processing, the use of complicated and delicate data visualizations, or new solution offerings (as in the case of Dundas expanding their solution offerings towards consumable end user targeted dashboards). 

In all of these cases, organizations require business intelligence and analytics to stay informed but either do not have the resources or do not want to spend exorbitant amounts on a single solution.  Consequently, solution providers are scrambling to stay ahead and provide businesses with offerings that meet their needs, are sensitive to pricing concerns, and that meet the standards of technology advancements.

About the Author

Lyndsay Wise is an industry analyst for business intelligence. For over seven years, she has assisted clients in business systems analysis, software selection and implementation of enterprise applications. Lyndsay is the channel expert for BI for the Mid-Market at B-eye-Network and conducts research of leading technologies, products and vendors in business intelligence, marketing performance management, master data management, and unstructured data. She can be reached at lwise@wiseanalytics.com. And please visit Lyndsay's blog at myblog.wiseanalytics.com.

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