Egham, UK, December 9, 2009 -- Once the preserve of cash-strapped organizations, open-source business intelligence (BI) tools are becoming a mainstream deployment option for all kinds of BI usage, according to Gartner, Inc.

Gartner analysts said that while functionality is not yet on a par with large commercial platforms and is still rarely seen as an enterprisewide BI standard, open-source BI tool deployment is growing solidly.

“Open source BI has seen an interesting adoption pattern over the last few years,” said Andreas Bitterer, research vice president at Gartner. “Hardly any organization looked at open-source BI until 2004, let alone deployed it to a significant number of users, but this submarket had developed nicely, having developed consistent growth rates over the last few years.”

Although the average size deal for an open-source BI contract remains approximately $30,000 for a yearly subscription, some contracts repeatedly exceed $500,000 for a multiyear support subscription, which is in the same ballpark as many commercial counterparts.

Organizations pushing open-source BI adoption are often from different vertical industries than those of the mainstream commercial vendors. While the latter claim deployments in every industry, the flagship implementations are typically in Type A organizations in the financial sector and in telecommunications. Open-source is more often seen in price-conscious midsize companies, as well as in government and the public sector, healthcare or manufacturing, and more Type B organizations with smaller budgets.

A large portion of the growth in open-source adoption is coming from the vendors' original equipment manufacturer business, which cannot be properly sized, as many independent software vendors simply use the downloadable version of the open-source BI product and add it as additional functionality in their own applications. In addition, system integrators have started to build practices around open-source technology, and they are also implementing BI platforms (mostly reports and dashboards) as part of the contracted solution.

“As you might imagine, the increasing open-source traction has not gone unnoticed by the commercial vendors. While often dismissed as being no competition, even the large established BI vendors have come up with counter measures to address the challenges from the lower-cost competitors,” said Mr. Bitterer.

Additional information is available in the Gartner report “Open-Source Business Intelligence Tools Production Deployments Will Grow Five-Fold through 2012.” The report is available on Gartner’s website at http://www.gartner.com/resId=1210513.

Gartner analysts will provide more detailed analysis on the future of the BI industry at the Gartner Business Intelligence Summit, being held 1-2 February, at the Lancaster London. The Gartner Business Intelligence Summit offers BI solutions, advice, real and tangible strategies, cutting edge best practices, and the latest tools and technology that will help IT leaders develop a more-effective BI strategy and improve the performance of their business. Members of the media can register by contacting Holly Stevens at holly.stevens@gartner.com. Additional information is available at www.europe.gartner.com/bi.

The Gartner Business Intelligence & Information Management Summit will be held at the Sydney Convention & Exhibition Centre in Sydney, 2-3 March. Members of the media can register by contacting Susan Moore at susan.moore@gartner.com. Additional information is available at www.gartner.com/ap/bi.

The Gartner Business Intelligence Summit will be at the Mandalay Bay Resort & Casino, 12-14 April, in Las Vegas.

Source: Gartner Press release