Business Intelligence Strategies for the CIOSpending in emerging markets and in Western Europe helped the worldwide business intelligence (BI) software market grow to $5.1 billion last year, an increase of 13% from 2006, according to Gartner Inc.
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But BI spending in the U.S. slowed "drastically" to 5% in 2007, thanks in part to a looming recession and a weak dollar, according to the Stamford, Conn.-based analyst firm. U.S. spending grew a healthy 16% in 2006, before the subprime mortgage crisis put a drag on the U.S. economy.
The biggest winners were the so-called mega-vendors – SAP, IBM, Oracle and Microsoft – which together increased their market share from 20% in 2006 to 66% in 2007, mainly through acquisitions. SAP and IBM completed acquisitions of Business Objects and Cognos, respectively, in January of this year. MeanwhileOracle bought Hyperion in March 2007.
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A combined Oracle and Hyperion tied Microsoft for 4th overall, each with 10.6% market share. Still, Gartner predicts that independent BI vendors will play an important role going forward. "Others" controlled over a quarter of the BI market in 2007.
The BI market has undergone "a pendulum shift from a market driven by best-of-breeds to one dominated by mega-vendors," said Dan Sommer, senior research analyst at Gartner, in a statement. "However, many smaller independent BI vendors grew faster than the market, and we expect continued innovation and new vendors to enter the market."
| Company | 2007 revenue | 2007 market share (%) | 2006 revenue | 2006 market share | '06-'07 growth (%) |
| Business Objects | 939.6 | 18.2 | 870.6 | 19.0 | 7.9 |
| SAS Institute | 752.3 | 14.5 | 665.8 | 14.4 | 13.0 |
| Cognos | 710 | 13.7 | 621.5 | 13.6 | 14.2 |
| Microsoft | 547 | 10.6 | 455.2 | 9.9 | 20.2 |
| Oracle | 484.5 | 9.4 | 236.4 | 5.2 | 105 |
| SAP | 408.5 | 7.9 | 306.5 | 6.7 | 33.3 |
| Others | 1,332.6 | 25.8 | 1,420.4 | 31 | -6.2 |
| Total | 5,141.7 | 100 | 4,576.3 | 100 | 13.1 |
Source: Gartner (May 2008)
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