Already available on Amazon, GoGrid, Red Hat, and Pivotal Cloud Foundry, Jaspersoft is broadening its cloud reach with the launch of its open source business intelligence (BI) suite on Microsoft’s Windows Azure. Our mission is to become the de facto reporting and analytic service for developers and IT in the cloud, said Karl Van den Bergh, VP of product and alliances, and with this launch, developers can embed Jaspersoft’s BI offering inside applications and processes built on the Azure platform.
Despite the massive increase in available data, and its growing importance in business decision-making, BI adoption seems to have stalled around the 25% adoption rate (Gartner puts it at 30% of potential users), said Van den Bergh. According to IDC, the business analytics software market is expected to grow at a 9.7% compound annual growth rate (CAGR) through 2017. Last year’s sales grew 8.7% to $34.9 billion, following a 15% jump in 2011, but still significantly better than the overall software market, which grew 3.6% year over year in 2012. The six largest vendors – Oracle, SAP, IBM, Microsoft, SAS, Teradata – accounted for 64% of worldwide revenues in 2012.
“There is growing quantifiable evidence that data-driven decision making enabled by business analytics solutions provides a competitive difference,” said Dan Vesset, Program Vice President, Business Analytics at IDC. “This, along with broad interest in big data, has pushed the technology to the top of many executive agendas and ushered it into the mainstream market.”
It gets even better, with Gartner predicting that the influence of analytics is set to increase dramatically. “We are rapidly heading towards a world of analytics everywhere,” said Dan Sommer principal research analyst at Gartner. “Gartner predicts that analytics will reach 50% of potential users by 2014. By 2020, that figure will be 75%, and we will be in a world where systems of record, systems of differentiation and systems of innovation are enabling IT, business and individuals to analyze data in a much denser fashion than before. Post 2020 we’ll be heading toward 100% of potential users and into the realms of the Internet of Everything.”
Jaspersoft — 1,800 customers, 325,000 community members, 130,000 embedded apps and 16 million downloads — is in the niche segment of the most recent Gartner Magic Quadrant for Business Intelligence and Analytics Platforms, although its partner network includes Red Hat, VMware, IBM, Google, Amazon and Novell. The market leaders included such industry heavyweights as IBM, Microsoft, Oracle, SAP and SAS.
Van Den Bergh said the main reason BI adoption hasn’t grown is that information workers already have access to their own preferred tools in their preferred workspace where they spend the majority of their time. “We really need to change the way people make decisions, not gut based, but fact-based.”
Rather than bring the info worker to BI, Jaspersoft wants to bring BI to the worker, embedding it in their preferred apps. “Our vision is to bring the intelligence to every application being built – the data-driven application – we believe every app should have some form of reporting and analysis as part of it.” Today the company has 130,000 apps, but there are millions of apps out there that don’t have BI, and that’s its goal, to become the de facto reporting and analysis part of the Web world, he said.
There are four barriers to this strategy, what Van Den Bergh calls the four Cs, cost, and three levels of complexity: building an app; complexity of use; and complexity to embed BI. “Jaspersoft is pretty good, but we’re still a long way from servicing all of the apps being built today.”
It all really starts with cost, he said. “We like to say we’re 80% of the capability of Business Object at 20% of the cost.”
The company made a pretty big dent in cost when it adopted a utility-base price model, offering it as low as $0.40/hour on Amazon’s AWS marketplace. In total, its 53 cents per hour, 40 cents for its software and 13 cents for the hardware that it runs on.
“That model is disruptive,” said Van Den Bergh. “All you need starting at $0.40 an hour. There’s nothing like this in the BI space.”
Microsoft Azure is the next step, but Jaspersoft plans to continue to attack both cost and complexity. While it needs to do more work on the complexity of deployment, its product roadmap will address the other two complexities, use and embedding, he said. “We expect to create what we call the third generation of embedded BI”, one that lives in the cloud and is largely based on big data.