Gartner: 7 Dynamics Influencing the Evolution of BI and Analytics
February 24, 2017
Share this

Global revenue in the business intelligence (BI) and analytics software market is forecast to reach $18.3 billion in 2017, an increase of 7.3 percent from 2016, according to the latest forecast from Gartner, Inc. By the end of 2020, the market is forecast to grow to $22.8 billion.

According to Gartner, modern BI and analytics continues to expand more rapidly than the overall market, which is offsetting declines in traditional BI spending. The modern BI and analytics platform emerged in the last few years to meet new organizational requirements for accessibility, agility and deeper analytical insight, shifting the market from IT-led, system-of-record reporting to business-led, agile analytics including self-service.

The modern BI and analytics market is expected to decelerate, however, from 63.6 percent growth in 2015 to a projected 19 percent by 2020. Gartner believes this reflects data and analytics becoming mainstream. The market is growing in terms of seat expansion, but revenue will be dampened by pricing pressure.

"Purchasing decisions continue to be influenced heavily by business executives and users who want more agility and the option for small personal and departmental deployments to prove success," said Rita Sallam, Research VP at Gartner. "Enterprise-friendly buying models have become more critical to successful deployments."

Gartner believes the rapidly evolving modern BI and analytics market is being influenced by the following 7 dynamics:

Modern BI at scale will dominate new buying

While business users initially flocked to new modern tools because they could be used without IT assistance, the increased need for governance will serve as the catalyst for renewed IT engagement. Modern BI tools that support greater accessibility, agility and analytical insight at the enterprise level will dominate new purchases.

New innovative and established vendors will drive the next wave of market disruption

The emergence of smart data discovery capabilities, machine learning and automation of the entire analytics workflow will drive a new flurry of buying because of its potential value to reduce time to insights from advanced analytics and deliver them to a broader set of people across the enterprise. While this "smart" wave is being driven by new innovative startups, traditional BI vendors that were slow to adjust to the current "modern" wave are driving it in some cases.

Need for complex datasets drives investments in data preparation

Business users want to analyze a diverse, often large and more complex combinations of data sources and data models, faster than ever before. The ability to rapidly prepare, clean, enrich and find trusted datasets in a more automated way becomes an important enabler of expanded use.

Extensibility and embeddability will be key drivers of expanded use and value

Both internal users and customers will either use more automated tools or will embed analytics in the applications they use in their context, or a combination of both. The ability to embed and extend analytics content will be a key enabler of more pervasive adoption and value from analytics.

Support for real-time events and streaming data will expand use

Organizations will increasingly leverage streaming data generated by devices, sensors and people to make faster decisions. Vendors need to invest in similar capabilities to offer buyers a single platform that combines real-time events and streaming data with other types of source data.

Interest in cloud deployments will continue to grow

Cloud deployments of BI and analytics platforms have the potential to reduce cost of ownership and speed time to deployment. However, data gravity that still tilts to the majority of enterprise data residing on-premises continues to be a major inhibitor to adoption. That reticence is abating and Gartner expects the majority of new licensing buying likely to be for cloud deployments by 2020.

Marketplaces will create new opportunities for organizations to buy and sell analytic capabilities and speed time to insight

The availability of an active marketplace where buyers and sellers converge to exchange analytic applications, aggregated data sources, custom visualizations and algorithms is likely to generate increased interest in the BI and analytics space and fuel its future growth.

"Organizations will benefit from the many new and innovative vendors continuing to emerge, as well as significant investment in innovation from large vendors and venture capital-funded startups," said Sallam. "They do, however, need to be careful to limit their technical debt that can occur when multiple stand-alone solutions that demonstrate business value quickly, turn into production deployments without adequate attention being paid to design, implementation and support."

Share this

The Latest

March 27, 2017

Monitoring a business means monitoring an entire business – not just IT or application performance. If businesses truly care about differentiating themselves from the competition, they must approach monitoring holistically. Separate, siloed monitoring systems are quickly becoming a thing of the past ...

March 24, 2017

A growing IT delivery gap is slowing down the majority of the businesses surveyed and directly putting revenue at risk, according to MuleSoft's 2017 Connectivity Benchmark Report on digital transformation initiatives and the business impact of APIs ...

March 23, 2017

Why containers are growing in popularity is no surprise — they’re extremely easy to spin up or down, but come with an unforeseen issue. Without the right foresight, DevOps and IT teams may lose a lot of visibility into these containers resulting in operational blind spots and even more haystacks to find the presumptive performance issue needle ...

March 22, 2017

Much emphasis is placed on servers and storage when discussing Application Performance, mainly because the application lives on a server and uses storage. However, the network has considerable importance, certainly in the case of WANs where there are ways of speeding up the transmission of data of a network ...

March 21, 2017

The majority of IT executives believe investment in IT Service Management (ITSM) is important to gain the agility needed to compete in an era of global, cross-industry disruption and digital transformation, according to Delivering Value to Today’s Digital Enterprise: The State of IT Service Management 2017, a report by BMC, conducted in association with Forbes ...

March 17, 2017

Let’s say your company has examined all the potential pros and cons, and moved your critical business applications to the cloud. The advertised benefits of the cloud seem like they’ll work out great. And in many ways, life is easier for you now. But as often happens when things seem too good to be true, reality has a way of kicking in to reveal just exactly how many things can go wrong with your cloud setup – things that can directly impact your business ...

March 16, 2017

IT leadership is more driven to be innovative than ever, but also more in need of justifying costs and showing value than ever. Combining the two is no mean feat, especially when individual technologies are put forward as the single tantalizing answer ...

March 15, 2017

The move to Citrix 7.X is in full swing. This has improved the centralizing of Management and reduction of costs, but End User Experience is becoming top of the business objectives list. However, delivering that is not something to be considered after the upgrade ...

March 14, 2017

As organizations understand the findings of the Cyber Monday Web Performance Index and look to improve their site performance for the next Cyber Monday shopping day, I wanted to offer a few recommendations to help any organization improve in 2017 ...

March 13, 2017

Online retailers stand to make a lot of money on Cyber Monday as long as their infrastructure can keep up with customers. If your company's site goes offline or substantially slows down, you're going to lose sales. And even top ecommerce sites experience performance or stability issues at peak loads, like Cyber Monday, according to Apica's Cyber Monday Web Performance Index ...