Business Intelligence Market Updates
To date, BI has fallen significantly short of its full
potential. Companies want much more from business intelligence systems,
than they can currently deliver, including the ability to predict
customer problems and make analysis part of minute-to-minute operations.
BI vendors recognize that businesses want query, reporting,
and analysis tools completely integrated with their operations,
not as a seperate side capability. Keep up to date with how BI vendors
are rising up to meet this challenge.
Over the past year, the foundation of the business intelligence
market have been completely revised, with synergy between transactional
systems and BI. Research company, Forrester, also sees more blurring
of BI and transaction/process management ahead, and IDC calls it
"intelligent process automation. "It's all about infusing
BI into the workflow of applications, whether they are HR, finance
or whatever," explains IDC's Dan Vesset. "That's where
SAP can really make a mark because it controls the applications,
and with Business Objects it will also have the BI tools."
They key, like any product will be in the differentiation.
Business Objects competitor SAS also believes that analytics and
application environments need to be one and the same, but not necessarily
through acquisition. Jim Davis, senior vice president and chief
marketing officer of SAS said,"If you just look at components
like query and reporting, they're becoming a commodity. Our success
has been based on things like fraud detection, price optimization
in retail, churn management in telco and campaign management in
marketing. The apps have analytics in them, but it's not analytics
Whilst Oracle, Microsoft and now SAP (with Business Objects) are
the mainstays of the new business intelligence market, independent
BI vendors are deemphasizing BI and are instead promoting analytics
[SAS] or performance management [Cognos].
Whilst Oracle and Microsoft are promoting the term 'BI', they are
doing so in reference to analytic applications, data warehousing
and tools. BI is retained as a marketing term rather than a technology,
but it now has a broader meaning.
SAP Buying Business Objects
SAP has reached an agreement to acquire Business Objects for $6.8
billion. [ 42 Euros per share]
Business Objects, was founded in France in 1990 and currently
maintains a headquarters in Paris and a U.S. base in San Jose, Calif.
The industry's largest business intelligence vendor, had a revenue
of $1.25 billion in 2006.
"The acquisition of Business Objects is in keeping with SAP's
stated strategy to double our addressable market by 2010 as announced
in 2005," said SAP CEO Henning Kagermann. InformationWeek reported
last fall that SAP pegged its customer base at 35,000, and wanted
to hit 100,000 by 2010.
According to Business Objects' Web site, the global BI specialist
has 43,000 customers. Thus, the acquisition will immediately vault
SAP's user roles to 78,000.
The BI capability will complement SAP's delivery of the first business
process platform and its enterprise SOA platform, SAP NetWeaver,
and the first complete on-demand business solution for midsized
companies, SAP Business ByDesign.
SAP will also gain Cartesis in the deal, the European performance
management vendor acquired by Business Objects in April 2007.
A joint statement claimed SAP will aim to provide "new, innovative
offerings of enterprise-wide business intelligence solutions along
with embedded analytics in transactional applications."
Closing date of the deal is heavily reliant on negotiating French
More on SAP BI Solution
Worldwide Business Intelligence Tools 2006
In 2006, business intelligence [BI] tools were still strong, compared
with other business applications and tools, and represented one
of the top investment priorities for end-user organizations.
- The market showed growth of 11.5% in 2006 for a total market
size of $6.25
billion in worldwide software revenue.
- BI vendor acquisitions continued
- New version releases - Cognos 8 BI
- Effective marketing and sales efforts by many small and medium-sized
BI vendors. Largely targeted at broader use base, with little
direct impact, however, results will be ongoing.
Interest in advanced analytics for forecasting, optimization,
and other decision
support techniques is growing as organizations look to move beyond
tools only for query and reporting.
More on Cognos 8 BI Solution
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Clear About BI With This Comprehensive Guide To BI Strategy, Program &
BI Solution Index | Market
| Gartner Eval. |
Comparisons | BI
On Demand | BusinessObjects | Cognos
8 BI | IBM | Information
Builders | MS PerformancePoint
| MS Sharepoint | Microstrategy
| Oracle BI | SAP
BI | SAS |
Teradata | BI Virtual Appliances
| BI Vendor Updates | 2008