As organisations turn to cloud-based computing and alternative deployment options
The business analytics software-as-a service (SaaS) market is expected to grow more than three times as fast as the total business analytics software market, with a compound annual growth rate (CAGR) of 22.4% through 2013, according to a new study from market intelligence firm IDC.
The study found that the number of business analytics SaaS users will grow rapidly from a small base, while market revenue will remain low relative to on-premise software throughout the forecast period.
Brian McDonough, research manager for business analytics solutions research service at IDC, said:The business analytics SaaS market is poised for rapid growth as more organisations turn to cloud-based computing and alternative deployment options. Growth expectations must be tempered as revenue generation gains traction behind user adoption.
IDC said that more business analytics software providers move to address increasing market demand for software that is updated frequently, hosted offsite, and can be purchased on a subscription basis.
According to IDC, several factors that will boost the growth include, capital expenditure policies and budget constraints that make SaaS offerings more attractive as they enable departments to subscribe to software services using operational budgets; and insufficient time to build, buy, or evaluate specific offerings for various business problem as IT resources are strained.
In addition, the study also finds that additional software functionality built on new platforms is suitable for SaaS delivery since there are well-established best practices that can be configured, rather than customised, through a flexible platform to suit most business needs.