The Future of BI Financial Model

Next to the evolution of the Business Intelligence applications, (less IT, more End User), there’s also a "r"-evolution going on in pricing. 

The best BI companies are challenging us by pricing their services in very different ways, making in some cases difficult a comparison between them unless you're an expert finance guy ;-). 

This could be just a financial issue, but it is not, it is critical for survival at the BI companies to match business model and financial model; the reason is that the changes in the business model are so intense and have so many implications that it is not longer possible to remain competitive by maintaining the current pricing model.

The BI "power" is minute by minute migrating from the BI companies to the end users, which are able to create, manage and change the way they look at and present the data by themselves. At the same time, BI companies are becoming "pure" software companies. There's little need for external services or dedicated developments.

In this context, there's a competition between BI companies with "high implementation costs-low yearly maintenance", against the ones with "low implementation-cost-higher yearly maintenance", with BI companies placed somewhere in between. 

The key question for BI companies is whether the pricing policy chosen is a sustainable financial model or not. 

What a fantastic time for small and medium companies management is starting thanks to recent Business Intelligence evolutions!

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