BI Spending to Remain Strong, for Now

Ann All

I blogged back in January about Gartner's prediction that the business intelligence market was about to enter a "flux" phase, largely due to market uncertainty following last year's buying spree in which nearly every major tech vendor snapped up a BI pureplay.


But BI will see another year or two of healthy growth before it hits the flux phase, reports ITPro. Companies see BI as a top priority, which means it won't be as affected by an economic downturn as other technologies, says Gartner, which predicts spending will hit $5.8 billion this year, an 11.2 percent increase from 2007.


Growth will begin to slow in 2009, due to vendor and product consolidation. Gartner forecasts a compound annual growth rate (CAGR) of 8.1 percent through 2012, with the global market to hit $7.7 billion that year.


Many aspects of BI, especially query, online analytical processing and reporting, will become commodities, which will drive down pricing. That downward pressure will be somewhat offset by BI's overall growth and the introduction of new capabilities, says Gartner.


Interestingly, Forrester Research believes that BI will play a key role in kicking off an eight-year period of accelerated technology spending, beginning in 2009. As I blogged in February, Forrester notes that tech spending historically follows the overall economy for eight years and then outpaces it for another eight years. If the pattern holds true, 2009 will mark the beginning of the next strong growth phase. In the past, spending activity has been driven by such game-changing technologies as the mainframe computer and the Internet.

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