Photo - Yanna Dharmasthira, Research Director at Gartner.
Technology research firm Gartner, Inc. expects Malaysia's business intelligence (BI) software revenue to reach RM114.5 million (US$36.94 million) in 2013, which is a nine percent increase from 2012. In addition, worldwide BI software revenue will reach US$13.8 billion in 2013, a seven percent increase from 2012, while the market will touch US$17.1 billion by 2016.
A research director at Gartner, Yanna Dharmasthira, said: ""According to a primary research survey of 415 IT leaders from organisations in Asia/Pacific, last year, Malaysia (51 percent) had the highest percentage of respondents that planned to increase their BI software spending."
"The primary objective for using BI is to improve decision making by putting information to better use," said Dharmasthira. "In the slow economy, tracking sales activity and customer data became important, given the business priority to better manage expenses, increase revenue, improve marketing capabilities and increase customer satisfaction."
She said the CIO appetite for BI was complemented by more-tactical buying in business units for departmental and workgroup analysis, as well as for personal BI, enabled by the Nexus of Forces (cloud, mobile, social and information). "These are fundamental drivers. However, in the near term, growth will be hampered by sluggish macro indicators, as well as by slowing sales cycles of multimillion-dollar end-to-end BI deals. Compared with 2011 growth of 16 percent, 2013 and the coming years are expected to be slower, with growth in the high single digits."
"BI and analytics have grown to become the fourth-largest application software segment as end-users continue to prioritise BI and information-centric projects and spending to improve decision making and analysis," added Gartner principal research analyst, Dan Sommer. "As more and more information is generated, business models need reinvention, and it's increasingly clear that mastering analytics on big data will be a key driver for the next economic cycle."
Top CIO priority
"Although this is a mature market and has been a top CIO priority for years, there is still a lot of unmet demand," said Gartner research vice president, Kurt Schlegel. "Every company has numerous subject areas - such as HR, marketing, social and so on - that have yet to even start with BI and analytics."
"The descriptive analytics have largely been completed for most large companies in traditional subject areas, such as finance and sales, but there is still a lot of growth expected for diagnostic, predictive and prescriptive deployments," said Schlegel. "Since many mid-sized enterprises have yet to even start their BI and analytic initiatives, we expect the market for BI and analytics platforms will remain one of the fastest-growing software markets."
He said the emerging data-as-a-service trend could significantly grow the market for BI and analytics platforms. "Today, the business model is largely "build" driven in that organisations license software capabilities to build analytic applications. However, organisations increasingly will subscribe to industry-specific data services that bundle a narrow set of data with BI and analytic capabilities embedded. In time, most companies, regardless of their business model, will need to provide a data-as-a-service offering. Therefore, this trend has the potential to grow the market significantly as a range of vendors look to embed a BI and analytic platform provider's software capabilities into their data-as-a-service offerings."
Sign up for Computerworld eNewsletters.