The global market for business intelligence (BI) and analytics software will reach $18.3bn this year, according to forecasts from Gartner, up 7.3 per cent from the year before.
The company says the latest generation of BI and analytics solutions are leading spending, as organisations look to offer more flexible and agile analytics solutions that are installed by business units and not IT.
BI and analytics spending will hit $22.8bn by 2020, Gartner predicts, but the growth in sales of modern analytics solutions will slow from 63.6 per cent in 2015 to a projected 19 per cent by 2020.
Gartner believes this reflects data and analytics becoming mainstream. The market is on the rise in terms of seat expansion, but revenue will be dampened by pricing pressure.
Cloud analytics in the MENA
A report by Micro Market Monitor forecasts the Middle East & Africa cloud analytics market to grow from $46.0 million in 2014 to $537.5m by 2019, at an estimated CAGR of 63.5 per cent during the forecast period. The drivers for the Middle East & Africa market include utility enhancement in multiple domains, constant growth in big data, and effortless instalment.
Cloud analytics is mainly a cloud-enabled solution that allows an organisation or individual to perform business analysis or intelligence procedures. These solutions and services are delivered through cloud models, such as hosted data warehouses, SaaS business intelligence (BI) and social media analytic products powered by the cloud.
Cloud analytics services work similar to a typical data analytics service, providing similar features and capabilities. The only difference is that cloud analytics integrates some or all of the service models of cloud computing in delivering that solution.
The Middle East and Africa market is increasing steadily due to insufficiency of in-house expertise, conventional business analytics solutions, and so on.
As many enterprises do not have enough IT personnel to manage their complex, mission-critical websites and other applications, cloud is the best and appropriate tool, as it manages colossal amount of data, without the use of any expert IT staff. This has rapidly increased the demand for cloud-based business analytics solutions.
Factors affecting the market
Gartner says that there are seven factors affecting the Business Intelligence and analytics market:
- Modern BI is dominating new buying as users look for accessible and swift solutions they can use themselves
- New vendors will disrupt the market with solutions such as smart data discovery capabilities, machine learning and automation of the entire analytics workflow
- Complex datasets are driving demand for solutions to automate the preparation, cleaning and discovery of data
- Extensible and embedded analytics tools are driving acceptance
- Support for real-time and streaming data is in demand to enable users to make faster decisions
- Cloud adoption is increasing
- BI and analytics marketplaces are encouraging exchange of analytic applications, aggregated data sources, custom visualizations and algorithms
Saudi Arabia’s cloud analytics market is forecast to exceed $74.7m (SAR280m) in 2019, from $5.3m (SAR20m) in 2014, according to a recent Micro Market Monitor report.
The 15-fold growth in the Kingdom’s cloud analytics market will drive Saudi Vision 2030 industry vertical innovation, business leaders announced on April 17 at the inaugural SAP Saudi Cloud Day.
Ahmed Al-Faifi, Managing Director, SAP Saudi Arabia, Bahrain, and Yemen said: “Cloud adoption is central for driving Saudi Vision 2030’s nationwide digital transformation and business competitiveness. The strong turnout at our inaugural Cloud Day event shows the demand for real-time cloud solutions for Saudi organisations across all industry verticals. Cloud solutions enable organisations to have real-time visibility and make better decisions that fuel Saudi economic growth.”
SAP is one of the world’s leading digital transformation enablers, with more than 125 million cloud subscribers worldwide and more than 30 cloud solutions across all lines of business.
Al Nasser Trading and Import Company with partner ISYX Technologies, received a gold award in the SAP Europe, Middle East, and Africa Quality Awards. Al Nasser Trading and Import Company used cloud solutions from digital transformation enabler SAP to improve materials planning by 40 per cent.
Other Saudi organisations receiving awards at the Middle East and North Africa level included the General Authority for Zakat and Tax with partner Invenio, Maadaniyah with partner BaasKaar IT Company, and Saudi Electric Company and Tasnee both with partner Cognizant.