disruption as a means to growth – insights from tbr’s inaugural business intelligence &...

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TECHNOLOGY BUSINESS RESEARCH, INC.

Insights from TBR’s Inaugural Business Intelligence and Analytics Software Vendor BenchmarkTechnology Business Research Quarterly Webinar Series

May 1, 2013

TBR

2 TBR Quarterly Webinar Series | 5.1.13 | www.tbri.com ©2013 Technology Business Research Inc.

Insights from TBR’s 4Q12 BI and Analytics Software Vendor Benchmark: Webinar Presenters

Allan KransSenior Analyst, TBR’s Software [email protected] @Allanktbr

Stuart WilliamsDirector, TBR’s Software and Cloud [email protected]@s2_williams

mailto:[email protected]


TBR


TBR’s 4Q12 Business Intelligence and Analytics Software Vendor Benchmark:

Taxonomy Overview and Research Context

TBR


TBR’s BI and Analytics Software Vendor Benchmark outlines the market to identify how and where vendors are monetizing capabilities

TBR Business Intelligence and Analytics Software Vendor Benchmark Taxonomy

4Q12 BI and Analytics Software Vendor Benchmark: Taxonomy and Context

Core BI and Analytics

Advanced BI and

Analytics

Emerging BI and Analytic

s

Includes vendor products that address:• Spreadsheets• Performance

Management• Reporting• Dashboards /

Scorecards• Data Mining

Includes vendor products that address:• Cloud Business Intelligence• Social Media Analytics• Content / Text Analysis• Mobile Business Intelligence• Event Processing

Includes vendor products that address:• Ad Hoc Queries• Predictive Analytics• Data Visualization• Online Analytical

Processing (OLAP)• Data Discovery

Of note for all segments:• Data warehousing is not included.• Revenue for databases is included as a portion

when tied to one of the above features.

TBR


TBR customer research shows current and future BI and analytics technology adoption segments the market opportunity by quadrant

Lagging Improving Leading Slipping

Lagging and improving customers lack core tools such as: Dashboards/Scorecards, Spreadsheets, Reporting, Predictive Analytics and Data Mining

Lagging: No purchase plans for

next 12 months

Improving: Have plans to invest in

the next 12 months

Leading and slipping customers possess full core toolsets that include: Dashboards/Scorecards, Spreadsheets, Reporting, and Predictive Analytics

Leading: Have plans to invest in

the next 12 months outside of core toolset

Slipping: No purchase plans for

next 12 months

4Q12 BI and Analytics Software Vendor Benchmark: Taxonomy and Context

TBR Business Intelligence and Analytics Software Maturity Quadrant Mapping

TBR


TBR’s 4Q12 Business Intelligence and Analytics Software Vendor Benchmark:

Market Overview

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TBR estimates a sequential decline (but year-to-year growth of 17%) in 1Q13 BI and analytics revenue of covered companies.

As pure-play firms invest in portfolio capabilities and traditional software firms eye acquisitions, the BI market landscape is set for CY13 growth

Estimated 4Q12 YTY growth across covered vendors: ~27%

4Q12 BI and Analytics Software Vendor Benchmark: Market Overview

TBR Estimates — BI and Analytics Software Market

TBR


TBR’s Business Intelligence and Analytics Software Vendor Benchmark:4Q12 Highlights and Outlook

TBR


BI and analytics vendors will see 15% CY13 revenue growth by marketing portfolios against feature-led customer buying trends

Revenue and growth leaders are monetizing feature-focused investments aimed at install base customers or positioning point BI products as interoperable with customers’ environments.

Revenue and growth leaders are extending investments beyond R&D and into go-to-market tactics designed to galvanize regional or segment growth.

TBR projects the BI and analytics software market will reach $25.5 billion by 2015, driving vendors to advance feature-led portfolios closer to end-to-end BI offerings that span BI segments.

Business Intelligence and Analytics Software CY4Q12 Overview and 2013 Outlook

4Q12 BI and Analytics Software Vendor Benchmark: Highlights

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TBR’s Business Intelligence and Analytics Software Vendor Benchmark:

4Q12 Highlights

TBR


Growth Drivers:• Market revenue leaders are driving growth by

adding high-interest features to establish products, which extends share of wallet.• Pure-play growth leaders are using leading

products to tackle pressing customer problems, thus monetizing single points of R&D across multiple BI revenue segments.

Traditional software vendors exceed 70 percent of the current BI and analytics software market by revenue, with pure plays influencing growth

4Q12 Business Intelligence and Analytics Software Market

Insights from TBR’s 4Q12 BI and Analytics Software Vendor Benchmark: Current State

TBR


SOURCE: TBR ESTIMATES, COMPANY DATA

Laggards(relative to TBR

average)

Leaders(relative to TBR

average)

Dollar growth leaders are traditional enterprise firms attaching high-value BI features to core products to drive share of wallet revenue growth

4Q12 BI and Analytics Software Vendor Benchmark: Current State

4Q12 BI and Analytics Software Market Segment Revenue Percentage and Dollar Growth

TBR

13 TBR Quarterly Webinar Series | 5.1.13 | www.tbri.com ©2013 Technology Business Research Inc. SOURCE: TBR ESTIMATES, COMPANY DATA

Leading pure-play vendors are monetizing high-interest, easy-to-deploy BI features including data visualization and predictive analytics


Laggards(relative to TBR average)

Leaders(relative to TBR average)

4Q12 BI and Analytics Software Market Segment Revenue Percentage and Dollar Growth

TBR


GOODDATA

ORACLE

TABLEAU

IBM

JASPERSOFT

HP SOFTWARE

PENTAHO

KXEN

SAP AG

SALIENTBIRST

MICROSTRATEGY

ACTUATE EMC MICROSOFT

QLIKTECH

SASGOOGLE

-100.0%

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

400.0%

-40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70%

BI V

endo

r Cor

pora

te R

even

ue G

row

th Y

ear-

to-Y

ear

BI Vendor Operating Margin

OVERALL BI 4Q12 REVENUE GROWTH AND MARGIN: % BI REVENUE GROWTH YEAR-TO-YEAR VS. BI OPERATING MARGIN


TBR

Average 4Q12 Corp Growth Year-to-Year = 60% Average Operating Margin= 10%

Enterprise software vendors will maximize install base revenue and BI profitability through core portfolio-led sales, driving CY13 growth

4Q12 BI & Analytics Software Market Segment Revenue Growth and BI Operating Margin

Insights from TBR’s 4Q12 BI and Analytics Software Vendor Benchmark: Current State



TBR


Unified value propositions are fueling growth leaders’ market momentum within the BI and analytics software landscape

GOODDATA

ORACLE

TABLEAU

IBM

JASPERSOFT

HP SOFTWARE

PENTAHO

KXEN

SAP AG

SALIENTBIRST

MICROSTRATEGY

ACTUATE EMC MICROSOFT

QLIKTECH

SASGOOGLE

-100.0%

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

400.0%

-40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70%

BI V

endo

r Cor

pora

te R

even

ue G

row

th Y

ear-

to-Y

ear

BI Vendor Operating Margin

OVERALL BI 4Q12 REVENUE GROWTH AND MARGIN: % BI REVENUE GROWTH YEAR-TO-YEAR VS. BI OPERATING MARGIN


TBR

Average 4Q12 Corp Growth Year-to-Year = 60% Average Operating Margin= 10%

4Q12 BI and Analytics Software Market Segment Revenue Growth and BI Operating Margin




TBR


Leading vendors opt to extend investments beyond products and into go-to-market tactics to set up for long-term revenue growth

Go-To-Market Investments:• Geographic Strategies: Vendors use

established core BI install bases as well as initial cloud and mobile BI purchases to drive year-to-year growth.

• Segment Strategies: Vendors invest in current core BI install bases as launching points for advanced BI sales.

Insights from TBR’s 4Q12 BI and Analytics Software Vendor Benchmark: Go-To-Market

4Q12 Business Intelligence & Analytics Software Market

TBR


TBR’s estimated BI and analytics market across covered vendors in the Americas rose 50% year-to-year in 4Q12 to reach a projected $2 billion in revenue for the quarter.

Vendors will create worldwide CY13 BI revenue growth opportunities by catering to the region-specific needs of customers and partners

4Q12 BI and Analytics Software Vendor Benchmark: Core BI and Analytics

4Q12 BI and Analytics Software Market: Geographic Assessment

TBR’s estimated BI and analytics market across covered vendors in EMEA rose 30% year-to-year in 4Q12 to reach a projected $1.6 billion in revenue for the quarter.

TBR’s estimated BI and analytics market across covered vendors in APAC rose 25% year-to-year in 4Q12 to reach a projected $1.2 billion in revenue for the quarter.

TBR


TBR’s Business Intelligence and Analytics Software Vendor Benchmark:

2013 Outlook

TBR


Global BI and analytics revenue remains tied tightly to vendors’ distinct sales and marketing plans, promising diverse CY13 growth opportunities

BI Market Segment Opportunity:• Advanced BI: Data visualization and predictive

analytics will drive pure-play acquisition by enterprise software firms in CY13 and CY14.

• Emerging BI: Cloud and mobile delivery will be the leading edge of adoption, with accelerating growth in CY14 from social media analytics.

Insights from TBR’s 4Q12 BI and Analytics Software Vendor Benchmark: 2013 Outlook

TBR 2013 Business Intelligence and Analytics Software Market Outlook

TBR


Data insights and analytics are driving near-term purchasing, which positions established vendors for 1H13 revenue growth in core BI

4Q12 BI and Analytics Software Vendor Benchmark: Core BI and Analytics



4Q12 BI and Analytics Software Core BI Segment Revenue Percentage and Dollar Growth

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TBR research shows BI adoption increasing across segments, positioning vendors with established advanced BI offerings for CY13 revenue growth


4Q12 BI and Analytics Software Advanced BI Segment Revenue Percentage/Dollar Growth


average)


average)

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PENTAHO

GOOGLE

ORACLE

EMC

IBM

JASPERSOFT

QLIKTECH

ACTUATE

BIRST

SAP AG

SASKXEN

-25%

-5%

15%

35%

55%

75%

95%

115%

$(20,000) $- $20,000 $40,000 $60,000 $80,000 $100,000YEAR

-TO

-YEA

R EM

ERG

ING

BI/

ANAL

YTIC

S RE

VEN

UE

GRO

WTH

%

EMERGING BI/ANALYTICS ABSOLUTE DOLLAR GROWTH (IN $ THOUSANDS)

4Q12 EMERGING BI/ANALYTICS REVENUE GROWTH: % REVENUE GROWTH VS. ABSOLUTE DOLLAR GROWTH


TBR

GOODDATA($3,100, 300.0%, $4,100)

HP SOFTWARE($129,000, 260.0%, $180,000)

TABLEAU($3,800, 360%, $4,800)

Average Absolute Dollar Growth Emerging BI $ Change = $16,000 (in $ thousands) Average Year-to-Year Corporate Revenue Growth Emerging BI % Growth Year-to-Year = 70%

With emerging BI and analytics still evolving as a BI segment, growth potential is high for vendors delivering cloud and mobile BI in CY13


4Q12 BI and Analytics Software Emerging BI Segment Revenue Percentage/Dollar Growth


average)


average)

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Questions?

TBR


For further information, please contact:

Stuart Williams James McIlroyDirector, Software and Cloud Practice Vice President, [email protected] [email protected]

TBR’s 4Q12 BI and Analytics Software Vendor Benchmark: Contact Information

Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannel



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TECHNOLOGY BUSINESS RESEARCH, INC.

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