SharesPost 2018 BI and Data Analytics Survey: Data Analytics remains critical as businesses plan to spend more in 2019
January 30, 2019 | Blog

SharesPost 2018 BI and Data Analytics Survey: Data Analytics remains critical as businesses plan to spend more in 2019

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.

Exhibit 1: Year over Year change in preferences of BI tools: From the Big 4 to niche companies
Exhibit 1: Year over Year change in preferences of BI tools: From the Big 4 to niche companies
Source: SharesPost Research; 2018 Survey N= 302, 2017 Survey N=250; Question: Please select the vendors you have used for business intelligence and analytics in your company? Percentages rounded off to the nearest integer; Data shows the percentage difference in preferences between 2017 and 2018 for each of the analytics vendors.

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.

Exhibit 2: Growing analytics needs for businesses year over year
Exhibit 2: Growing analytics needs for businesses year over year
Source: SharesPost Research; 2018 Survey N=302, 2017 Survey N=250; Question: What kind of business intelligence and analytics tools do you use currently in your organization? (multi-select)? Percentages rounded off to the nearest integer

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.

Exhibit 3: The need to deal with unstructured data consistently high at 95%
Exhibit 3: The need to deal with unstructured data consistently high at 95%
Source: SharesPost Research; 2018 Survey N=302, 2017 Survey N=250; Question: Do you perform business intelligence and analytics with unstructured data? Percentages rounded off to the nearest integer

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

CONFLICTS

This report is distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation, and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own financial advisors before making any investment decisions. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

This report does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

ANALYST CERTIFICATION

The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about the subject matter therein, including all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be during their employ directly or indirectly related to their specific views contained in this report.

Analyst compensation is indirectly based upon the growth and success of SharesPost, Inc., including the overall performance of its subsidiaries, the individualized performance of any such analyst, and the development and progression of the overall research effort. SharesPost, Inc. earns revenue from, among other avenues, brokerage sales, and therefore the analyst may indirectly benefit from research reports that have the ultimate effect of increasing trading activity, either through SharesPost Financial Corporation and/or with SharesPost Investment Management, LLC.

DISCLAIMER

This report does not contain a complete analysis of every material fact regarding any issuer, industry, transaction, or security. The opinions expressed in this report reflect the judgment of the analyst at a specific point in time and are subject to change. The information contained in this report has been obtained from sources the analysts consider to be reliable; however, there is no guarantee the any of the information is accurate.

Securities referenced in this report may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2019. All rights reserved.

Alejandro Ortiz

Alejandro Ortiz

Alejandro is a Research Analyst, Private Investment Research for SharesPost Research LLC. Prior to joining SharesPost, he was a Valuation Analyst at Duff & Phelps with a focus on TMT industries.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

CONFLICTS

This report is distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation, and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own financial advisors before making any investment decisions. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

This report does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

ANALYST CERTIFICATION

The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about the subject matter therein, including all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be during their employ directly or indirectly related to their specific views contained in this report.

Analyst compensation is indirectly based upon the growth and success of SharesPost, Inc., including the overall performance of its subsidiaries, the individualized performance of any such analyst, and the development and progression of the overall research effort. SharesPost, Inc. earns revenue from, among other avenues, brokerage sales, and therefore the analyst may indirectly benefit from research reports that have the ultimate effect of increasing trading activity, either through SharesPost Financial Corporation and/or with SharesPost Investment Management, LLC.

DISCLAIMER

This report does not contain a complete analysis of every material fact regarding any issuer, industry, transaction, or security. The opinions expressed in this report reflect the judgment of the analyst at a specific point in time and are subject to change. The information contained in this report has been obtained from sources the analysts consider to be reliable; however, there is no guarantee the any of the information is accurate.

Securities referenced in this report may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2019. All rights reserved.