The Cloud business analytics market will grow more than three times faster than the traditional on premise market over the next five years, but still not be as big a revenue spinner for vendors.
That's the prediction from International Data Corporation (IDC) which forecasts a compound annual growth rate (CAGR) of 22.4% through to 2013 for business analytics delivered as a service. But for all that, revenues from the Cloud sector of the market will remain low relative to on-premise software throughout the forecast period due to the low starting point of users for the on demand model.
"The business analytics SaaS market is poised for rapid growth as more organisations turn to Cloud-based computing and alternative deployment options," said Brian McDonough, research manager for IDC's Business Analytics Solutions research service. "Growth expectations must be tempered as revenue generation gains traction behind user adoption."
But the expected rise in the number of people adopting the Cloud model is being driven by a number of underlying factors. IDC cites the main drivers as being:
-
Capital expenditure policies and budget constraints make SaaS offerings more attractive as they enable departments to subscribe to software services using operational budgets.
-
IT resources are strained and there is insufficient time to build, buy, or evaluate specific solutions for various business problems, putting control of technology decisions into the hands of the business
-
Additional software functionality built on new platforms is suitable for SaaS delivery since there are well-established best practices that can be configured, rather than customised, through a flexible platform to suit most business needs.
The predictions are found in a new IDC study, Worldwide Business Analytics Software-as-a-Service Forecast, 2008-2013 which presents the forecast for business analytics software offered as a service and discusses the drivers and trends impacting the market.
Post new Comment