TBR
T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
Serving 2 types of customers to drive growth
Insights from TBR’s Business Intelligence Software Vendor Benchmark Technology Business Research Quarterly Webinar Series
Oct. 8, 2014
TBR
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Insights from TBR’s 2Q14 Business Intelligence (BI) Software Vendor Benchmark: Presenters
Matt Healey Principal Analyst Email: [email protected] Twitter: @Mhealey_TBR
Elizabeth Hedstrom Henlin Senior Analyst, Software and Applications Email: [email protected] Twitter: @EAHHTBR
TBR
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TBR delivers actionable intelligence on the maturing BI market to help clients bridge the gap between buyer aspirations and vendor actions
Note: Software vendors under consideration for 2014 report launches include Tableau Software, Splunk and QlikTech. TBR publishes a semiannual report on SAS Institute in the second and fourth calendar quarters.
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Program Overview
Business Intelligence Software Vendor Benchmark
Business Intelligence Professional Services Vendor Benchmark
Business Intelligence Addressable Market Forecast
Business Intelligence Software Customer Research
Business Intelligence Professional Services Customer
Research
TBR
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Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Overview
TBR evaluates the business intelligence (BI) software market across 4 key segments and across a main model of delivery
Note: Business Intelligence and Analytics Engineered Systems is discussed in this benchmark as an accretive revenue model and delivery component, reflecting some contributions from all four software segments.
Integrated solutions encompassing multiple points of BI functionality in a single product
Point products addressing single- or dual-purpose deployments of BI functionality
Data warehousing and related information management products deployed in support of
business intelligence
Basic BI Tools
Advanced BI Tools
Data Warehousing
Business Intelligence and
Analytics Engineered Systems
BI Applications and Platforms
Delivery method for BI software, inclusive of hardware, software and support revenue
TBR
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Analytic Applicationsand Platforms
BI ApplicationsAnd Platforms
Business Applications(Analytic Components)
Performance Management
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Overview
Subsegments in TBR’s BI software taxonomy align to buyer maturity and the features they select along their BI purchasing journey TBR BI Software Taxonomy Subsegments
Reporting, Queries,Spreadsheets
Basic BI Tools
Dashboards, Scorecards
Online Analytical Processing(OLAP)
Data Discovery
TBR
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Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Overview
Subsegments in TBR’s BI software taxonomy align to buyer maturity and the features they select along their BI purchasing journey (cont.) TBR BI Software Taxonomy Subsegments
Data Mining
Advanced BI Tools Event Processing
Data Visualization
Content Analytics
Predictive Analytics
TBR
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Key Takeaways: TBR’s 2Q14 Business Intelligence
Software Vendor Benchmark
TBR
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Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
2Q14 BI Software Market Summary
BI software vendors continue to shift investments to engage data-centric IT purchasers and line-of-business (LOB) stakeholders
As customers expand BI software deployments, rather than scaling out significant net-new purchases, vendors that best align with buyers’ portfolio and messaging needs will accelerate revenue growth.
The ability to marry LOB executive concerns to BI software products will create growth across BI software market segments.
Vendors will focus short-term investments on monetizing existing portfolios, with long-term opportunity contingent on current development plans.
TBR
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2014 BI Software Market Outlook
TBR
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Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
2Q14 BI Software Market Summary
BI software vendors continue to shift investments to engage data-centric IT purchasers and LOB stakeholders
As customers expand BI software deployments, rather than scaling out significant net-new purchases, vendors that best align with buyers’ portfolio and messaging needs will accelerate revenue growth.
The ability to marry LOB executive concerns to BI software products will create growth across BI software market segments.
Vendors will focus short-term investments on monetizing existing portfolios, with long-term opportunity contingent on current development plans.
TBR
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$8.7 $7.6 $9.8 $7.9 $9.1 $8.0 $9.5
$28.1$31.1
$33.6 $34.5 $36.2 $37.9 $39.6 $41.3
$11.6$9.5
$12.5$10.1
$11.7$10.0
$12.0
$35.1
$38.6
$43.1 $43.8$45.8
$47.7$49.5 $50.4
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Est.4Q14 Est. 2011 2012 2013 2014 Est. 2015 Est. 2016 Est. 2017 Est. 2018 Est.
TBR ESTIMATED BUSINESS INTELLIGENCE SOFTWARE MARKET REVENUE PROJECTIONS AND COVERED VENDORS' REVENUE WITHIN TBR'S BUSINESS INTELLIGENCE SOFTWARE VENDOR BENCHMARK
TBR BI Software Market as covered in TBR's BI Software Vendor Benchmark TBR Market Estimate: Total BI Software
TB
R E
stim
ate
d B
I So
ftw
are
Mar
ket
Re
ven
ue
(in
$ B
illio
ns)
Calendar Quarter / Year
TBR
SOURCE: TBR ESTIMATES AND COMPANY DATA
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
Portfolio and market consolidation of firms selling advanced BI tools drove near-term revenue growth in 2Q14 and will sustain upticks in 2014 TBR Estimates — BI Software Market
Estimated 2Q14 YTY growth across the landscape: ~24% Estimated 2Q14 YTY growth across covered vendors: ~26%
PREPUBLICATION
TBR
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IBM SOFTWARE
DELL SOFTWARE
GOODDATAGOOGLE
QLIKTECH
SAP
SAS
SPLUNK
TABLEAU
TERADATA
HP SOFTWARE
INFORMATION BUILDERS
MICROSTRATEGY
BOARD INTERNATIONALTIBCO
ACTUATE
MICROSOFT
INFORMATICA
PENTAHO
SALIENT
PIVOTAL
DOMO
DATASTAX
MARKLOGIC
BIRST
DATAMEER
-50%
0%
50%
100%
150%
$(25,000) $(5,000) $15,000 $35,000 $55,000 $75,000 $95,000 $115,000
Year
-to
-yea
r O
vera
ll B
I Rev
enu
e G
row
th (
%)
Overall BI Revenue - Absolute Dollar Growth (in $ Thousands)
2Q14 OVERALL BI SOFTWARE REVENUE GROWTH: % REVENUE GROWTH VS. ABSOLUTE DOLLAR GROWTH
TBR
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.SOURCE: TBR ESTIMATES, COMPANY DATA
Average Absolute Overall BI $ Change = $15 million Average Overall BI % Growth Year-to-year = 5%
KAGGLE($511; 182%)
Covered Vendors’ 2Q14 BI Revenue Growth: Percentage and Dollar Growth
Laggards
Leaders
Vendors moving away from the pack in revenue growth rates seized a core narrative that appeals to multiple BI buyer segments
Pure-play vendors including Tableau, Splunk and Google are successfully monetizing segmented approaches to the BI software market, expanding alliances and industry-led use cases to stabilize footprints and create long-term growth opportunities.
Revenue contribution leader IBM’s sustained focus on analytics for broader reinvention will accelerate the company’s monetization of customers around newer offerings such as Watson.
Note: Kaggle is excluded from current averages.
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
PREPUBLICATION
TBR
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BI Software Market Segmentation
TBR
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Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
2Q14 BI Software Market Summary
BI software vendors continue to shift investments to engage data-centric IT purchasers and LOB stakeholders
As customers expand BI software deployments, rather than scaling out significant net-new purchases, vendors that best align with buyers’ portfolio and messaging needs will accelerate revenue growth.
The ability to marry LOB executive concerns to BI software products will create growth across BI software market segments.
Vendors will focus short-term investments on monetizing existing portfolios, with long-term opportunity contingent on current development plans.
TBR
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SAP
ACTUATE
DELL SOFTWARE
MICROSOFT
ORACLE
QLIKTECH
SALIENT
SAS
IBM SOFTWARE
INFORMATION BUILDERS
PIVOTAL
TERADATA
PENTAHO
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
-40% -20% 0% 20% 40% 60% 80% 100%
BI V
end
or
BI S
egm
ent
Rev
enu
e G
row
th Y
ear-
to-y
ear
BI Vendor Operating Margin
BASIC BI TOOLS 2Q14 REVENUE GROWTH AND MARGIN: % BI REVENUE GROWTH YEAR-TO-YEAR VS. BI OPERATING MARGIN
TBR
Average Revenue Growth Year-to-year = 3.8% Average Operating Margin = 16.8%
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.SOURCE: TBR ESTIMATES, COMPANY DATA
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
Basic BI tools software vendors are accelerating revenue growth with tools that integrate seamlessly with customers’ environments
Profit leader Oracle continues to monetize its Endeca acquisition, and TBR projects integration of those assets into broader business applications and Database 12c deployments.
Overall migration away from the axis for vendors in basic BI tools emphasizes the success of these firms in migrating late adopters of BI to initial reporting and dashboarding deployments.
Dell Software’s sustained investments in the Toad portfolio, in both development and customer proof points, will maintain its growth in basic BI tools and position it for profitability by the end of CY15.
PREPUBLICATION
Laggards
Leaders
Note: Kaggle is excluded from current averages.
TBR
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SAS
ORACLE
SALIENT
SAP
IBM SOFTWARE
INFORMATICAPIVOTAL
TERADATA
TIBCO PENTAHO
INFORMATION BUILDERS
MICROSOFT
-50%
0%
50%
100%
150%
200%
0% 25% 50% 75%
BI V
end
or
BI S
egm
ent
Rev
enu
e G
row
th Y
ear-
to-y
ear
BI Vendor Operating Margin
ADVANCED BI TOOLS 2Q14 REVENUE GROWTH AND MARGIN: % BI REVENUE GROWTH YEAR-TO-YEAR VS. BI OPERATING MARGIN
TBR
Average Revenue Growth Year-to-year = 5.8% Average Operating Margin = 13.4%
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.SOURCE: TBR ESTIMATES, COMPANY DATA
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
Predictive analytics, data mining and data visualization are growth drivers for advanced BI tools vendors, with content analytics leading revenue
Creating clear paths and time lines to value will move customers from considering to using advanced BI tools such as content analytics — an area in TBR’s BI taxonomy that has, in our opinion, the most potential to expand and overlap with cloud offerings
PREPUBLICATION
Laggards
Leaders
Note: Kaggle is excluded from current averages.
Dell Software acquired StatSoft in 1Q14. TBR estimates that Dell Software realized $600,000 in advanced BI tools revenue in 2Q14 as a result of that purchase.
TBR
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Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
2Q14 BI Software Market Summary
BI software vendors continue to shift investments to engage data-centric IT purchasers and LOB stakeholders
As customers expand BI software deployments, rather than scaling out significant net-new purchases, vendors that best align with buyers’ portfolio and messaging needs will accelerate revenue growth.
The ability to marry LOB executive concerns to BI software products will create growth across BI software market segments.
Vendors will focus short-term investments on monetizing existing portfolios, with long-term opportunity contingent on current development plans.
TBR
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HP SOFTWARE
IBM SOFTWARE
INFORMATICA
MICROSOFT
ORACLE
SAP
TIBCO
Co
vere
d V
end
or
Med
ian
S&
M a
s %
of
Rev
enu
e (3
0%
)
Covered Vendor Median R&D as % of Revenue (15%)
DELL SOFTWARE
HP SOFTWARE
IBM SOFTWARE
INFORMATICA
MICROSOFT
ORACLE
SAP
TIBCO
Stable percentages of sales and marketing, and research and development relative to revenue emphasize BI as an ongoing priority for vendor growth S&M and R&D as Percentage of Revenue: Enterprise Software Vendors
Informatica is in the right place at the right time where BI is concerned — capitalizing on data management skill sets to rapidly increase brand visibility and portfolio traction in new customer bases.
IBM Software will increase its relative focus on sales and marketing for BI heading into CY15, as the company moves to monetize new “freemium” offerings of its Watson product.
HP Software’s increasing focus on R&D as a relative percentage of BI revenue signals additional offerings on the horizon to companion HAVEn, which TBR notes as one of the pillar offerings that can help HP accelerate its reinvention.
Sales as Rising Priority Monetize BI Business
Innovate and Develop Stable Portfolio
Oracle, Microsoft and SAP are examples of vendors targeting one another to accelerate growth; TBR expects all three to prioritize S&M over R&D in the near term to take mindshare.
4Q13 Position
2Q14 Position
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
SOURCE: TBR AND COMPANY DATA
PREPUBLICATION
TBR
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DATAMEER
DATASTAXDOMO
GOODDATA
HORTONWORKS
MARKLOGIC
PENTAHO
PIVOTAL
QLIKTECH
SAS
SPLUNK
TABLEAU
TERADATA
Co
vere
d V
end
or
Med
ian
S&
M a
s %
of
Rev
enu
e (3
0%
)
Covered Vendor Median R&D as % of Revenue (15%)
ACTUATE
BIRST
BOARD INTERNATIONAL
CLOUDERA
DATAMEER
DATASTAX
DOMO
GOODDATA
HORTONWORKS
INFORMATION BUILDERS
MARKLOGIC
MICROSTRATEGY
PENTAHO
PIVOTAL
QLIKTECH
SALIENT
SAS
SPLUNK
TABLEAU
TERADATA
-ACTUATE-BIRST-BOARD INTERNATIONAL-CLOUDERA-MICROSTRATEGY
-INFORMATION BUILDERS-SALIENT
Divergence among pure-play firms, driven by increased R&D investment, indicates future growth for functionality and delivery of BI S&M and R&D as Percentage of Revenue: Pure-play BI Vendors
Sales as Rising Priority Monetize BI Business
Innovate and Develop Stable Portfolio
Firms including MicroStrategy, Board International and SAS are expanding investments on all fronts to capitalize on broader demand from customers and larger demand generation machines inside of multiline competitors including IBM and Oracle.
Teradata’s increased focus on S&M alongside stable R&D spend signals a firm monitoring the SAP-Oracle-IBM-Microsoft “database wars” closely, in the hopes corporate investments will lift everyone in this market.
Sustained investments by Salient and Information Builders indicate both firms are focused on evaluating and monetizing offerings to strengthen margins.
Insights from TBR’s 2Q14 BI Software Vendor Benchmark: Market Outlook
SOURCE: TBR AND COMPANY DATA
PREPUBLICATION
4Q13 Position
2Q14 Position
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BI Software Market Projections
TBR
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For vendors with point solutions, the ability to integrate with existing
infrastructure increases customer consideration.
Targeted vendors: Highlight business value of functionality and heterogeneity to raise profile relative to multiline
firms.
Vendors that can put forward multiple BI
buyer-oriented messages will capitalize on customer sentiment and win wallet share across buyer types.
Multiline firms: Embed BI into solutions, renewals
and marketing.
By building BI tools and platforms that readily and
heterogeneously integrate, BI software
vendors can aid customers in doing more
with less.
To disrupt BI software vendor customer relationships, firms can create paths to trust by demonstrating readily integrated products
TBR Projections: 2015 Business Intelligence Software Vendor Landscape
Insights from TBR’s BI Software Vendor Benchmark: Market Projections
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Questions?
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James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166
Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: www.linkedin.com/company/technology-business-research
Insights from TBR’s BI Software Vendor Benchmark: Contact Information
Matt Healey Principal Analyst Email: [email protected] Twitter: @Mhealey_TBR
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Syndicated Research Coverage by Vendor Segment
Software Vendor Reports (Software Business Quarterly)
Benchmarks and Market Landscapes (Benchmark XLS data is also available)
• CA Technologies • Dell Software* • HP Software • IBM Software • Microsoft Corp. • Oracle Corp. • Red Hat • SAP AG • SAS* • Symantec • VMware
• Software Vendor Benchmark The benchmark currently covers 29 firms, encompassing software license, maintenance and professional services revenue.
• Business Intelligence Software Vendor Benchmark* The benchmark includes BI business of select Software Business Quarterly vendors and additional pure-play firms (31 firms as of CY2Q14).
TBR Software Practice Syndicated Coverage
*Semiannual publication; **Annual publication
SourceIT — IT Customer Segment Reports Insight and in-depth study results on N. American and large enterprise budgeting, buyers and competitors across workloads
SourceIT Business Applications: • SourceIT Energy and Utilities* • SourceIT FSI* • SourceIT Healthcare* • SourceIT Retail*
SourceIT Consulting and Systems Integration for Business Applications: • SourceIT Energy and Utilities* • SourceIT FSI* • SourceIT Healthcare* • SourceIT Retail*
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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
About TBR Technology Business Research, Inc. (TBR) is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today.
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