WORLDWIDE ANALYTIC APPLICATIONS MARKET ON COURSE
TO DOUBLE IN THREE YEARS, ACCORDING TO IDC
Worldwide analytic applications software revenue broke the $1 billion mark in 1997, will pass $2 billion by 2000 and is poised to reach $3.6 billion by 2002 according to the Analytic Applications: 1998 Worldwide Markets and Trends report released by IDC. The burgeoning analytic applications market represents the ``buy'' market for solutions that automate activities for planning, forecasting, and predictive modeling such as budgeting or factory planning. Major enterprise application vendors are now entering the market, the domain of analytic application specialists today.
IDC first defined the term ``analytic applications'' in an August 1997 bulletin as packaged software that meets three distinct conditions:
process support -- packaged application software that structures and automates a group of tasks pertaining to the review and optimization of business operations or the discovery and development of new business
functional separation -- the application functions independently of an organization's core transactional applications, yet can be dependent on such applications for data and may send results back to these applications time-oriented,
integrated data -- the application extracts, transforms, and integrates data from multiple sources, supporting a time-based dimension for analysis
of past and future trends
IDC believes that the analytic applications market is still emerging and its outcome will be driven by two major scenarios, the triumph of vendor-led suites or framework plus independent applications. Vendor- led suites is an analytic market that is dominated by a single or small group of application vendors. The second scenario represents a more mixed market composed of separate, department-level applications along with analytic application frameworks accompanied by applications certified to work with the framework. ``IDC believes that some version of this second scenario is likely, whether the framework is bought or built. The resulting combination of framework, transactional, and analytic applications will become the new benchmark for enterprise applications as enterprise optimization systems.'' said Henry Morris, Program Director of IDC's Data Warehousing and Information Access Tools research and advisory service.
Key Findings
today, with budget/planning and business performance management to grow
the fastest among applications in this category.
specific analytic applications, but other verticals such as retail/wholesale are coming on strong.
IDC's Analytic Applications: 1998 Worldwide Markets and Trends (#B17524) report provides a detailed view of the worldwide analytic applications market by cross-industry and vertical-industry applications. The data is further broken out into nine specific application categories, including accounting, customer relationship management, and financial services with forecasts through 2002. An analysis of leading vendors and their market share are reported for 1997. This is the ``buy'' market for data warehousing solutions. A companion report, Data Warehouse Tools: 1998 Markets and Trends (#B17622) on the ``build'' market is also available. This provides vendor shares, profiles, and market forecasts for the data warehousing tools markets: warehouse generation, data management, and information access. Both reports are available for purchase by calling Cheryl Toffel at 1-800-343-4952.
About IDC
International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com