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Real-time has caught the imagination of the industry. From data capturing to
sales force automation, everything is happening in real time or is well on its
way to happen in real time. In the face of this scenario, if there is one
application that has gained momentum in adoption, it is business intelligence
(BI). In the past one year, BI has been the buzzword in the industry as it moves
from informing to analyzing.
And the BI space itself is displaying a lot of activity. In January, 2008,
SAP completed its acquisition of Business Objects and IBM completed its
acquisition of Cognos. The acquired firms were two of the largest in the market
and had arguably been the defining suppliers in the space. Their absorption into
larger entities (along with Hyperion into Oracle six months earlier) seemingly
marked the end of BI platforms as a predominantly stand-alone, best-of-breed
buying decision.
Buying Behavior
The purchase trends in the BI space have also undergone some significant
changes. There has been a growing bifurcation of buying preferences. Broadly,
there are two types of buying behaviors evident. In the first one firms see
their BI platform as an extension of their enterprise middleware and require the
platform to fit into more heterogeneous data and application sources, and then
there are those with an inclination for pre-integration of a BI platform into a
stack of data and application sources from a single vendor.
| Making the SaaS
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- Hosted or SaaS model for BI
- BI in real-time
- BI for small and mid businesses
- BI as SOA
- Re-emergence of work-group BI
BI Stats
- According to IDC, the market for BI software is already worth more
than $7 bn worldwide
- The Indian market is over $75 mn
- By 2010, 20% of organizations will have an industry-specific analytic
application delivered via software as a service (SaaS) as a standard
component of their BI portfolio
- According to Gartner, BI growth, worldwide will shift to single digits
owing to the recession. It is now expected to have a CAGR of 8-9%
- In 2009, collaborative decision making will emerge as a new product
category that combines social software with business intelligence platform
capabilities
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Both these types of buyers, have sparked off the integration drive amongst
the mega-vendors, and their road maps are inevitably pointing at integrating the
acquired technologies into their existing portfolios. While the first phase of
BI was wrought with implementation challenges, in the latter stages, BI seems to
have come of age.
There are enough reasons to counter the failure of some BI implementations in
the initial stages and the inability of some to see the light of day. According
to Sanjay Deshmukh, country manager, Business Objects, SAP India, In the
earlier times, every user had a different idea of what they meant by BI. There
was a lot of confusion in that space.
However, most of the buyers now agree that the older definition of BI is now
dead. As per Ashit Panjwani, director, marketing, Alliances & Channels, SAS
India, BI doesnt exist as it used to before. This statement brings out the
massive evolution that the BI domain has seen over the past couple of years or
so. From being just a data gurgling system, BI is now a data analysis system.
BI has moved to data analysis rather than just data organization. We no longer
call it Business Intelligence. We call it Business Analytics, he says.
The Trends
Till about a few years back, the focus was on data generation. Now, it is
about utilizing the generated data effectively. Analysts havent predicted an
ERP style growth for BI without a basis. Some of the major traits that BI is
displaying are business customization, increased levels of interactivity and
heightened real-time operations.
Moreover, the maturing of Microsofts lower-cost BI portfolio, the
application of Web 2.0 techniques, the availability of data warehouse (DW)
appliances, the growth of open-source BI and the ongoing emergence of software
as a service (SaaS) offerings have continued to make BI capabilities
increasingly accessible and more affordable.
Mehak Chawla
mehakc@cybermedia.co.in
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