The free inclusion of basic BI capabilities in SQL Server 2005 is helping Microsoft to quickly gain share in the Business Intelligence (BI) market. IT managers currently exploring BI solutions should analyze Microsoft’s current offering before making a purchasing decision.

Microsoft Disrupts the BI Market

Microsoft is the largest threat to established BI players such as Business Objects and Cognos due to its large installed base, strong partnership channel, and financial power. As illustrated in Figure 1, Microsoft is by far the fastest growing vendor in the BI market. Between 2003 and 2005, Microsoft achieved a growth rate of 182.5% (i.e. from $125 million in 2003 to $353.1 million in 2005). This performance is approximately five times the growth rate of Cognos, which was the second fastest growing BI vendor.