IDC’s Worldwide Business Intelligence Tools Tracker Finds the Market Surpassed $4 Billion in Revenues in the Second Half of 2010 with Further Growth Expected in 2011

FRAMINGHAM, Mass., June 27, 2011 – The worldwide business intelligence (BI) tools market generated more than $4 billion in revenues in the second half of 2010 (2H10), according to the International Data Corporation (IDC) Worldwide Semiannual Business Intelligence Tools Tracker. This marks the first time the market has surpassed the $4 billion mark in a semiannual period. For the full year 2010, the BI tools market grew 12.7% year over year, adding $893 million in global revenues over the previous year.

"2010 was a solid year for the BI tools market and our models indicate that growth will continue throughout the five-year forecast period," said Dan Vesset, program vice president, Business Analytics. "Business analytics remains one of the top priorities for most organizations and BI tools are one of the key enabling technologies for more pervasive business analytics. To continue growing in the BI tools market, vendors need to align their technology packaging and pricing with the growing preference among end-users for departmental and incremental projects and subscription pricing. Although the latter still represents only a small portion of the BI tools market, SaaS or cloud BI offerings are growing three times faster than the rest of the market."

For the full year, SAP and IBM were the top 2 BI tools vendors, capturing more than $1 billion each in software revenue during 2010. SAP enjoyed strong growth in a number of large country markets, including Australia, Canada, and Russia. IBM's performance was bolstered by strong results in Australia, Canada, Japan, and the United Kingdom. The top 10 vendors accounted for 72% of the overall market in 2010, with four vendors – MicroStrategy, Oracle, Panorama Software, and QlikTech – outperforming the market in terms of year-over-year growth. A total of 58 vendors were included in the 2H10 market results.

The End-User Query, Reporting, and Analysis functional market enjoyed a stronger growth rate for the year, up 13.7% over 2009. Russia delivered an outstanding performance in this functional market, with annual growth of more than 200%. Australia, Canada, India, Korea, and PRC also had growth rates above the global average. In addition, Brazil and Russia broke through the $100 million revenue mark in 2010, joining eight other major countries with annual revenues over $100 million.

In comparison, the Advanced Analytics functional market grew 8.6% year over year in 2010 with three large country markets – Australia, Brazil, and India – growing more than 30% year over year in 2010. IDC expects six large country markets – Australia, Brazil, Canada, India, Korea, and Russia – to achieve double-digit growth rates in 2011.

IDC's Worldwide Semiannual Business Intelligence Tools Tracker provides total market size and vendor share for the following functional markets: end user, query, reporting, and analysis; and advanced analytics software. Measurement for this tracker is total software revenue, which includes license plus maintenance plus SaaS and other subscription revenue. The Tracker covers six geographic regions with country-level data for 13 nations. Annual five-year market forecasts for this Tracker are updated semiannually and include five-year annual market projections. Forecasts are available at worldwide, regional, and country levels.

For more information about IDC's Worldwide Semiannual Software Trackers, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

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