Monday, 25 June 2012 03:07

BI market revenues grow with infrastructure consolidation


The Australian business intelligence (BI) software market generated $324.12 million in software licensing and maintenance revenue last year, representing revenue growth of 5.4 percent. Further growth of eight percent a year (CAGR) is forecast over the next five years to 2016.

According to the latest survey of the BI market by IDC, the growth for BI tools in 2011 has been primarily driven by the continuous efforts of Australian organisations to consolidate existing IT infrastructure. "In addition, there has been more upgrades on existing BI tools seen as opposed to purchasing newer solutions," IDC Market Analyst, Natalie Ng, said.

"An end-user survey by IDC has found over the past years, adoption rate of BI tools has increased in importance. Businesses are recognising the benefits BI tools can deliver in an increasingly complex environment, and is leveraging them to make intelligent better-informed business decisions."

IDC reports that end-user query and analysis software is primarily used for its report building capabilities and has 82.8 percent share of the Australian BI market. “Advanced analytics software is also a component of the BI market, but a growth inhibitor has been its perceived premium price tag and insufficient supply of business users with appropriate analytical skills to use such tools.  In spite of this, Advanced Analytics applications in Australia have 17.2% share of the overall market for BI,” Ng says.

"With the forthcoming carbon tax, Australian businesses will look to employ analytic tools in an effort to improve business efficiency to reduce carbon emissions."

In the near term, IDC expects pre-packaged analytic applications and business analytics appliance offerings to be favoured by SMBs for its ease and low cost of deployment, and SaaS solutions for its low total cost of ownership (TCO).


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



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