Leveraging Information and Intelligence

David Linthicum

SaaS BI Growing

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Did you hear about SaaS BI? It's going to be exploding.

"Mounting evidence suggests that in 2010, the hottest segment in BI (business intelligence) software will revolve around offerings delivered from the cloud, thanks to increased product sophistication, strained IT budgets and other factors.

A new IDC report finds the SaaS BI market will experience triple the growth of the market overall, soaring at a compound annual growth rate of 22.4 percent through 2013, although actual revenue totals will remain small compared to on-premise BI applications."

Good to hear, but 22.4 percent is a bit excessive if you ask me. However, I can understand why this would occur considering that budgets are tight, also SaaS BI is addressing a portion of the market that traditional BI technology has not addressed, such as front office operations. Those guys have not had the BI tools required to do their job, and many SaaS BI providers, such as Good Data and others, and looking to fill that slot.

Additionally, with the BI tool living out in the cloud you now have the perfect opportunity to mash up your BI data with lots of interesting third party data, such as your sales compared against census data, or sales growth as related to other data sets. You can have a bunch of fun with that, trust me.

To be honest I've been a bit bearish on SaaS and BI for the last few years. The existing SaaS BI tools had some baking to do before they are ready for enterprise prime time. That said, I now believe that most of the BI SaaS players have done a good job in addressing those needs, and you can count on SaaS BI being mixed in with traditional BI systems for the next few years, perhaps replacing those system in 5 years. It's all going to the cloud, right?

3 Comments

David: 22% over a smaller, growing SAAS BI market seems easier to achieve when compared to the overall $5 billion BI market.

While it may take time for enterprises to adopt SAAS BI, the growth can come from the SMBs segment. SMBs can use the no-cost-upfront, pay-as-you-go model of SAAS to their full advantage. For example, the service that I represent - Zoho Reports - has a free edition and pricing plans start at $12 per month.

Oops, a typo!

The pricing plans for Zoho Reports start at $15 per month.

Industry expert Dave Linthicum tells you what you need to know about building efficiency into the information management infrastructure

David Linthicum

David Linthicum is the CTO of Blue Mountain Labs, and an internationally known distributed computing and application integration expert. View more

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