Fueled by big data talk, the business analytics software market is set to growth at a 9.8 percent compound annual growth rate to hit $50.7 billion in 2016, according to IDC projections.
What's driving the business analytics sales, which grew 14.1 percent in 2011? A lot of big data hype. Big data headlines are putting analytics on the radar of chief executives and other top brass. As a result, analytics is top of mind for corporations.
The other moving part here is that analytics software vendors have to ramp their research and development efforts largely to prepare for non-structured data technologies like Hadoop.
Add it up and there will be new spending and new tools on tap for the years ahead. By category, data warehousing software showed the strongest 2011 growth as revenue jumped 15.2 percent from the previous year. Analytics software and business intelligence software both grew a bit more than 13 percent.
IDC also noted that cloud and software as a service options are deemphasizing the actual components of an analytics stack. In a nutshell, vendors will have to tweak their core pitches to focus on business value.