Big Data Spurs Interest in Business Analytics, Drives Market Growth
Global business analytics revenues grew 14.1 percent in 2011, thanks in part to Big Data hype, according to IDC.
Hype is often viewed as distracting, annoying or both. (Just ask parents of preteens with "Bieber fever.") Hype isn't always a bad thing, though, as it can help create awareness for worthy topics. It's a safe bet business analytics vendors see hype around Big Data as a good thing, as it helped drive double-digit growth in business analytics revenues for 2011.
According to new IDC research, global business analytics revenues grew 14.1 percent in 2011. Data warehousing platform software saw the biggest year-over-year growth, at 15.2 percent. Other strong performers included analytic applications, with a 13.3 percent jump, and business intelligence and analytic tools, which increased 13.2 percent.
Dan Vesset, program vice president for IDC's Business Analytics Solutions, said business analytics software "has crossed the chasm into the mainstream mass market," thanks in part to intense media coverage of Big Data.
Changes in Business Analytics Market
According to IDC, interest in Big Data, combined with new business analytics applications based on non-relational data management technology, is spurring vendors to accelerate their R&D efforts, consider adding new tools and applications to their product lines through acquisitions, and focus on integrating new and existing technologies.
The business analytics market will continue to grow at a healthy clip, with IDC forecasting a 9.8 percent compound annual growth rate (CAGR) through 2016, when it predicts the market will reach $50.7 billion.
IDC predicts companies will show increasing interest in industry- and business process-specific analytics applications, which will require vendors to deliver products and services based on finer segmentation of their customers by industry, region and organization size. Vendors will also need to devote more resources to providing business analytics services, as companies with less business analytics experience become interested in leveraging the technology.
As appliances, software-as-a-service (SaaS) applications and outsourcing engagements involving business analytics become more popular, end-users will pay less attention to specific technology components. They will instead focus on business value arguments and overall functionality, according to IDC.
One area of concern, Vesset said, is "the previously minor issue of the shortage of highly skilled IT and analytics staff."
Ann All is the editor of Enterprise Apps Today. Follow Enterprise Apps Today on Twitter @EntApps2Day.