Business Analytics SaaS Market to Grow Three Times Faster Than the Overall Business Analytics Market, IDC Finds

FRAMINGHAM, Mass. – January 11, 2010 – Over the next five years, the business analytics software-as-a service (SaaS) market will grow more than three times as fast as the total business analytics software market with a compound annual growth rate (CAGR) of 22.4% through 2013. A new study from IDC finds that the number of business analytics SaaS users will grow rapidly from a small base, however market revenue will remain low relative to on-premise software throughout the forecast period.

"The business analytics SaaS market is poised for rapid growth as more organizations 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."

As more and more business analytics software providers move to address increasing market demand for software that is updated frequently, hosted offsite, and can be purchased on a subscription basis, several factors will help aid in driving this growth. They are:

* 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 user.

* 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 customized, through a flexible platform to suit most business needs.

This IDC study, Worldwide Business Analytics Software-as-a-Service Forecast, 2008-2013 (IDC #221320) presents the forecast for business analytics software offered as a service and discusses the drivers and trends impacting the market. It also addresses the competitive landscape of the business analytics SaaS market, which is now comprised of a mix of new entrants – established as SaaS providers – as well as established analytics vendors who have added SaaS offerings. Finally, the study provides essential guidance for vendors and users.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com/ [http://www.idc.com/].

###