This blog is an excerpt from a research report titled “2018 BI and Data Analytics Survey: Analytics remains critical with a positive spend outlook amongst businesses.” To download the report, please log in to your SharesPost account or register here.
Since we conducted our inaugural survey in October 2017, businesses have been collecting exponentially more data. Demand for sophisticated business intelligence and data analytics has soared, along with valuations for both private and public data analytics companies. 2018 saw analytics companies, including Cloudera and Alteryx, going public with an average of over 8x revenue multiple at IPO. This bodes well for companies such as Palantir who plan to follow suit next year.
SharesPost surveyed over 300 IT executives and decision makers in October 2018 to understand the change in their preferences and outlook on Business Intelligence (BI) and data analytics tools over the past 12 months. Companies have unanimously told us that analytics is now a critical business function for their organizations to succeed, with over 90 percent planning to increase their spend on BI tools specific to their data needs.
Some of the other key takeaways from the survey are:
Niche BI players are gaining market share over the Big 4. Analytics companies such as Tableau, Splunk and Qlik, which focus on specific tools like data visualization, reporting or integration, are winning customers from all-in-one service providers like Microsoft, IBM, Oracle, and SAP. The percentage of businesses using Tableau rose to 33 percent from 18 percent last year, Splunk users to 22 percent from 19 percent, and Qlik users to 11 percent from 8 percent. During the same period, IBM users decreased to 40 percent from 54 percent, Oracle users to 38 percent from 45 percent and SAP users to 29 percent from 38 percent.
Significant growth in adoption of descriptive and predictive analytics tools. The percentage of IT professionals using descriptive and predictive analytics grew to high 60s percent from mid 40s over the past 12 months. Content analytics usage increased to 54 percent from 43 percent. We believe the exponential rate at which companies are collecting data has increased the need for easy visualization and the ability to analyze and act on the data.
Unstructured data is a big challenge for businesses. Over 40 percent businesses must frequently deal with unstructured data and over 95 percent of businesses face some kind of need to manage unstructured data . Small and medium sized business especially feel this need. Almost half of the IT professionals polled from smaller companies say they must manage unstructured data all the time, up from 43 percent in 2017. The percentage grew similarly for mid-size companies from 55 percent from 51 percent over the same period.
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