Investment by CIOs and IT managers in business intelligence (BI) software to improve decision making processes is driving the market to greater revenues than 2012, said analyst firm Gartner.
Gartner's Forecast Analysis: Enterprise Application Software, Worldwide, 2011-2016, 4Q12 Update said that BI revenues are predicted to hit A$475.6 million in Australia during 2013, an increase of 9.5 per cent over 2012. This compares to global BI revenues , which are forecast to reach US$13.8 billion this year, a 7 per cent increase from last year.
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According to Gartner Sweden principal research analyst, Dan Sommer, IT executives and business units are buying BI software for department and workgroup analysis.
"BI and analytics have grown to become the fourth-largest application software segment as end users continue to prioritise BI projects and spending to improve decision making and analysis," he said in a statement.
"As more and more information is generated, business models need reinvention, and it's increasingly clear that mastering analytics on big data will be a key driver for the next economic cycle."
However, Sommer also warned that in the near term, BI growth will be hampered by slowing sales cycles of multimillion dollar deals.
Growth in the BI software market his year and over the coming years is expected to be in the single digits, compared to 16 per cent in 2011.
However, Gartner predicted that the emerging data-as-a-service trend could aid the market for BI and analytics platforms.
According to Gartner US research vice president, Kurt Schlegel, enterprises will subscribe to industry-specific data services that bundle a narrow set of data with BI and analytics embedded.
"In time, most companies, regardless of their business model, will need to provide a data-as-a-service offering," he said in a statement.
"Therefore, this trend has the potential to grow the market significantly as a range of vendors look to embed a BI and analytic platform provider's software capabilities into their offerings."
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