Magazine article CRM Magazine

Analytics Advance through the Cloud: The Analytics-as-a-Service Market Is Expected to Grow Fivefold in Five Years

Magazine article CRM Magazine

Analytics Advance through the Cloud: The Analytics-as-a-Service Market Is Expected to Grow Fivefold in Five Years

Article excerpt

[ILLUSTRATION OMITTED]

Like many other CRM applications, analytics is moving to the cloud, much to the benefit of the businesses that have adopted such solutions, according to a pair of reports released this past summer.

The emerging analytics-as-a-service market includes specific solutions for customer service, marketing, sales, Web, social media, financial, and other needs, according to MarketsandMarkets. The research firm values the market at $4.23 billion currently, but says it is poised to soar to $23 billion by 2020.

Key growth drivers, the firm found, are the lower total cost of ownership and the increased agility and scalability that such solutions provide. "As analytics-as-a-service eliminates the need to implement and manage analytics infrastructure on premises, it helps organizations cut preventable losses, generate more revenue by increasing operational efficiency, and create new opportunities," the firm stated in its market forecast report. "These factors have resulted in an increasing demand for analytics-as-a-service to analyze critical business situations on demand as soon as they occur."

The report notes that businesses of all sizes are increasing their adoption of cloud-based analytics from vendors such as SAS Institute, IBM, Oracle, Computer Sciences Corp., and Hewlett Packard.

Nucleus Research adds vendors such as Domo, Adaptive, GoodData, Pentaho, Tableau, Salesforce.com, Qlik, and Yellowfin to that list. The firm also notes that barriers to entry in the analytics-as-a-service market have been lowered, resulting in the segment becoming "more crowded."

Even Accenture joined in, following its July launch of advanced analytics applications that can be run on their own or through the Accenture Insights Platform. The Accenture Insights Platform is an end-to-end analytics-as-a-service solution comprised of an integrated suite of technologies, consumption-based commercial arrangements, and enterprise support.

The industry has become more competitive as well. "Moving forward, stand-alone analytics vendors will have to differentiate themselves with either industry-specific solutions, which deliver a 57 percent faster time to value, or more advanced analytics functionality," says Anne Moxie, an analyst at Nucleus Research and one of the report's authors. …

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