IBM's SPSS Deal May Spark BI Market Consolidation - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Healthcare // Analytics

IBM's SPSS Deal May Spark BI Market Consolidation

SAP will likely acquire a company specializing in predictive analytics within the next year, Forrester Research predicts.

IBM's planned acquisition of SPSS Inc. is likely to set off a new wave of consolidation in the business-intelligence market, as more software vendors look to beef up their predictive analytics capabilities, according to a Forrester Research report.

Forrester predicts that in the coming year, vendors will look to partner or acquire companies specializing in this area, including Accelrys Software, Angoss, FICO, KXEN, and Portrait Software. SAP, in particular, is likely to make a predictive analytics acquisition, the research firm says.

"Any BI vendor that fails to realign around a strong predictive focus will find itself on the sidelines of this new era of future-facing analytics," according to Tuesday's report, "Business Intelligence Polishes Its Crystal Ball," co-authored by James Kobielus, Boris Evelson, and Leslie Owens.

SAS Institute, a privately held company, is the clear market leader in predictive analytics, followed by SPSS. In a Dec. 2007 interview with InformationWeek, SAS CEO and co-founder Jim Goodnight said he wasn't interested in being acquired. SAS had "numerous opportunities in the last year [to be acquired] and a number of inquiries," Goodnight said in 2007, but he felt such a merger wasn't needed given SAS's strong revenue growth, and would negatively impact the company's culture.

It's unclear whether Goodnight still feels that way, but SAS continues to report strong revenues.

Two years ago, a big wave of consolidation hit the market for traditional BI tools, such as query and reporting. In Oct. 2007, SAP announced it would acquire Business Objects, and a month later, IBM said it would acquire Cognos. Now Forrester expects SAP to follow IBM's move in the predictive (also called advanced) analytics area, to mitigate the risk of depending on its existing partnership with SPSS.

Still, even with SPSS coming under the wings of a competitor, Forrester points out that SAP already has some relevant offerings, including the forecasting and market-basket analysis capabilities in SAP Business Warehouse, and some of the more advanced analytic and trend-projection capabilities in Crystal Reports and Xcelsius.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Previous
1 of 2
Next
Comment  | 
Print  | 
More Insights
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll