Posted by Muneeswara C Pandian
December 17th, 2010

In the last few years starting with the Oracle acquisition of Hyperion in 2007 to the recent acquisition like Sybase by SAP, Netezza by IBM, many small and large acquisitions have happened in between. Market consolidation happening among the mega vendors Oracle, SAP and IBM, has led to major changes in the consumption of Business Intelligence (BI) by the organizations.

The impact on the BI service and related areas due to market changes can be observed across 6 different areas as

  1. BI User Base
  2. BI License Revenue
  3. BI Product Vendors
  4. Analytic Applications
  5. BI Application Upgrades and Migrations
  6. Alternate BI Solutions

Following table summarizes the trends observed because of the market consolidation in the last few years

BI Related Trend Observation Drivers
BI User Base
  • The users accessing the data from the data warehouse increases and are increasing every day as BI applications start delivering real-time and operational reports.
  • Increase in the availability of BI applications that are specific for the interface of mobile devices like iPhone, iPad etc.
  • The introduction of SME focused budget friendly BI platforms from vendors like SAP (BO Edge, BO On Demand) and IBM (Cognos Express) will get many smaller organizations access to the BI systems at lesser cost.
BI License Revenue
  • The BI licensing cost component has decreases.
  • The BI platforms and as well the analytic solutions are getting packaged as an add-on to the ERP applications, also the Mega vendors  are pushing the BI solutions at a miniscule cost to avoid the situation for an independent BI vendor to get in.
BI Product Vendors
  • The number of independent BI platform vendors has decreased
  • Competition among the Mega vendors has led to the acquisition of many small to large independent BI products
Usage of Analytic Applications
  • Organizations are now demanding quicker BI solutions, leading to an increase in the packaged analytic solutions implementation.
  • Also enabling an analytic solution with industry standard ERP platforms has become much easier now. All Mega vendors have started offering Packaged analytics along with the ERP packages at a lesser cost
BI Application Upgrades & Migration
  • There has been considerable increase and interest shown by organizations in the BI platform migration projects.
  • Also organizations are looking at license and maintenance cost saving by consolidating different BI platforms to one preferred platform.
  • Proposition from Mega vendors to migrate to their platforms at a lesser cost
  • Existence of multiple BI products among the Mega vendors like Oracle (Discoverer, Siebel Analytics, Brio etc), SAP (BEx) leading to platform consolidation to the newer supported platform
Alternate BI Solution
  • To compete against Mega vendors we can observe an increase in industry specific BI solutions being defined by niche vendors on areas like Spend Analytics, Healthcare Analytics.
  • Also the Mega vendors are looking at reducing the BI experience cost through alternate offerings like On-Demand, Cloud solutions, low cost SME specific BI platform editions like SAP BO Edge Series, IBM Cognos Express.

Thanks for reading, let me know your observations. .wish you a happy new year 2011

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