Posts tagged ‘Business Intelligence’

Jul 3

Roundup Of Analytics, Big Data & Business Intelligence Forecasts And Market Estimates, 2014

From manufacturers looking to gain greater insights into streamlining production, reducing time-to-market and increasing product quality to financial services firms seeking to upsell clients, analytics is now essential for any business looking to stay competitive. Marketing is going through its own transformation, away from traditional tactics to analytics- and data-driven strategies that deliver measurable results.

Analytics and the insights they deliver are changing competitive dynamics daily by delivering greater acuity and focus. The high level of interest and hype surrounding analytics, Big Data and business intelligence (BI) is leading to a proliferation of market projections and forecasts, each providing a different perspective of these markets.

Presented below is a roundup of recent forecasts and market estimates:

The Advanced and Predictive Analytics (APA) software market is projected from grow from $2.2B in 2013 to $3.4B in 2018, attaining a 9.9% CAGR in the forecast period. The top 3 vendors in 2013 based on worldwide revenue were SAS ($768.3M, 35.4% market share), IBM ($370.3M, 17.1% market share) and Microsoft ($64.9M, 3% market share). IDC commented that simplified APA tools that provide less flexibility than standalone statistical models tools yet have more intuitive graphical user interfaces and easier-to-use features are fueling business analysts’ adoption. Source: http://www.idc.com/getdoc.jsp?containerId=249054

A.T. Kearney forecasts global spending on Big Data hardware, software and services will grow at a CAGR of 30% through 2018, reaching a total market size of $114B. The average business expects to spend $8M on big data-related initiatives this year. Source: Beyond Big: The Analytically Powered Organization.

Cloud-based Business Intelligence (BI) is projected to grow from $.75B in 2013 to $2.94B in 2018, attaining a CAGR of 31%. Redwood Capital’s recent Sector Report on Business Intelligence (free, no opt in) provides a thorough analysis of the current and future direction of BI. Redwood Capital segments the BI market into traditional, mobile, cloud and social business intelligence. The following two charts from the Sector Report on Business Intelligence illustrate how Redwood Capital sees the progression of the BI market through 2018.

redwood capital global intelligence market size

Enterprises getting the most value out of analytics and BI have leaders that concentrate more on collaboration, instilling confidence in their teams, and creating an active analytics community, while laggards focus on technology alone. A.T. Kearney and Carnegie Mellon University recently surveyed 430 companies around the world, representing a wide range of geographies and industries, for the inaugural Leadership Excellence in Analytic Practices (LEAP) study. You can find the study here. The following is a graphic from the study comparing the characteristics of leaders and laggards’ strategies for building a culture of analytics excellence.

leaders and laggards2

The worldwide market for Big Data related hardware, software and professional services is projected to reach $30B in 2014. Signals and System Telecom forecasts the market will attain a Compound Annual Growth Rate (CAGR) of 17% over the next 6 years. Signals and Systems Telecom’s report forecasts Big Data will be a $76B market by 2020. Source: http://www.researchandmarkets.com/research/s2t239/the_big_data

Big Data is projected to be a $28.5B market in 2014, growing to $50.1B in 2015 according to Wikkbon. Their report, Big Data Vendor Revenue and Market Forecast 2013-2017 is outstanding in its accuracy and depth of analysis. The following is a graphic from the study, illustrating Wikibon’s Big Data market forecast broken down by market component through 2017.

Big Data Wikibon

SAP, IBM, SAS, Microsoft, Oracle, Information Builders, MicroStrategy, and Actuate are market leaders in BI according to Forrester’s latest Wave analysis of BI platforms. Their report, The Forrester Wave™: Enterprise Business Intelligence Platforms, Q4 2013 (free PDF, no opt in, courtesy of SAS) provides a thorough analysis of 11 different BI software providers using the research firm’s 72-criteria evaluation methodology.

Amazon Web Services, Cloudera, Hortonworks, IBM, MapR Technologies, Pivotal Software, and Teradata are Big Data Hadoop market leaders according to Forrester’s latest Wave analysis of Hadoop Solutions. Their report, The Forrester Wave™: Big Data Hadoop Solutions, Q1 2014 (free PDF, no opt in, courtesy of MapR Technologies) provides a thorough analysis of nine different Big Data Hadoop software providers using the research firm’s 32-criteria evaluation methodology.

IDC forecasts the server market for high performance data analysis (HPDA) will grow at a 23.5% compound annual growth rate (CAGR) reaching $2.7B by 2018. In the same series of studies IDC forecasts the related storage market will expand to $1.6B also in 2018. HPDA is the term IDC created to describe the formative market for big data workloads using HPC. Source: http://www.idc.com/getdoc.jsp?containerId=prUS24938714

Global Big Data technology and services revenue will grow from $14.26B in 2014 to $23.76B in 2016, attaining a compound annual growth rate of 18.55%. These figures and a complete market analysis are available in IDC’s Worldwide Big Data Technology and Services 2012 – 2016 Forecast. You can download the full report here (free, no opt-in): Worldwide Big Data Technology and Services 2012 – 2016 Forecast.

Big Data technology and services will grow from $1.95B in 2013 to $9.83B in 2020, attaining a CAGR of 26%. These and other market forecasts and projections are in a report Huawei sponsored titled Big Data & Advanced Analytics in Telecom: A Multi-Billion-Dollar Revenue Opportunity. A chart from the study is shown below that shows Big Data analytics market size by business category.

big data analytics by market size

Financial Services firms are projected to spend $6.4B in Big Data-related hardware, software and services in 2015, growing at a CAGR of 22% through 2020. Software and internet-related companies are projected to spend $2.8B in 2015, growing at a CAGR of 26% through 2020. These and other market forecasts and projections can be found in Bain & Company’s Insights Analysis, Big Data: The Organizational Challenge. An infographic of their research results are shown below.

Big-Data-infographic-Bain & Company

The World Economic Forum, INSEAD and Cornell University published The Global Information Technology Report 2014 Rewards and Risks of Big Data (369 pp., free, no opt-in), providing a thorough global analysis of technology trends. This book provides a thorough overview of the Networked Readiness Index and in-depth analysis by national ICT adoption levels. One of the more valuable sections is on Big Data adoption, with a summarized analysis presented below. You can download the entire book in PDF form here.

potential payback of big data initiatives

Sep 16

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Why CIOs Are Quickly Prioritizing Analytics, Cloud and Mobile

Customers are quickly reinventing how they choose to learn about new products, keep current on existing ones, and stay loyal to those brands they most value. The best-run companies are all over this, orchestrating their IT strategies to be as responsive as possible.

The luxury of long technology evaluation cycles, introspective analysis of systems, and long deployment timeframes are giving way to rapid deployments and systems designed for accuracy and speed.

CIOs need to be just as strong at strategic planning and execution as they are at technology. Many are quickly prioritizing analytics, cloud and mobile strategies to stay in step with their rapidly changing customer bases. This is especially true for those companies with less than $1B in sales, as analytics, cloud computing and mobility can be combined to compete very effectively against their much bigger rivals.

What’s Driving CIOs – A Look At Technology Priorities

Gartner’s annual survey of CIOs includes 2,300 respondents located in 44 countries, competing in all major industries. As of the last annual survey, the three-highest rated priorities for investment from 2012 to 2015 included Analytics and Business Intelligence (BI), Mobile Technologies and Cloud Computing.

Source: From the Gartner Report Market Insight: Technology Opens Up Opportunities in SMB Vertical Markets September 6, 2012 by Christine Arcaris, Jeffrey Roster

How Industries Prioritize Analytics, Cloud and Mobile

When these priorities are analyzed across eight key industries, patterns emerge showing how the communications, media and services (CMS) and manufacturing industries have the highest immediate growth potential for mobility (Next 2 years). In Big Data/BI, Financial Services is projected to be the fastest-developing industry and in Cloud computing, CMS and Government.

In analyzing this and related data, a profile of early adopter enterprises emerges. These are companies who are based on knowledge-intensive business models, have created and excel at running virtual organization structures, rely on mobility to connect with and build relationships with customers, and have deep analytics expertise. In short, their business models take the best of what mobility, Big Data/BI and cloud computing have to offer and align it to their strategic plans and programs. The following figure, Vertical Industry Growth by Technology Over the Next Five Years, shows the prioritization and relative growth by industry.

Source: From the Gartner Report Market Insight: Technology Opens Up Opportunities in SMB Vertical Markets September 6, 2012 by Christine Arcaris, Jeffrey Roster

How Mobility Could Emerge As the Trojan Horse of Enterprise Software

Bring Your Own Device (BYOD), the rapid ascent of enterprise application stores, and the high expectations customers have of continual mobile app usability and performance improvements are just three of many factors driving mobility growth.

Just as significant is the success many mid-tier companies are having in competing with their larger, more globally known rivals using mobile-based Customer Relationship Management (CRM), warranty management, service and spare parts procurement strategies. What smaller competitors lack in breadth they are more than making up for in speed and responsiveness. Gartner’s IT Market Clock for Enterprise Mobility, 2012 captures how mobility is changing the nature of competition.

Source: IT Market Clock for Enterprise Mobility, 2012 Published: 10 September 2012 Analyst(s): Monica Basso

Bottom Line – By excelling at the orchestration of analytics, cloud and mobile, enterprises can differentiate where it matters most – by delivering an excellent customer experience. Mobility can emerge as an enterprise Trojan Horse because it unleashes accuracy, precision and speed into customer-facing processes that larger, complacent competitors may have overlooked.