SMB Business Intelligence: Here Come Open Source VARs

business intelligence small business

Our story starts with Google, and the search giant’s free Google Analytics software. Thought certainly not a traditional business intelligence application, Google Analytics made BI concepts commonplace within small businesses that are on the Web. Entrepreneurs now understand that they have to “measure” their progress online. That Google Analytics mentality is now spilling over into marketing, sales, finance and other areas SMBs need to track and manage.

Meanwhile, traditional BI software companies  — SAS Institute, SAP Business Objects, IBM Cognos, etc. — have been expanding their messaging to small and midsize businesses. A case in point: More than 80 percent of new SAS commercial accounts in 2009 were SMB customers. In the U.S., SAS adds, more than 300 new customers in 2009 were midsized businesses.

Meanwhile, there are strong indications that distributors — such as Ingram Micro — are playing closer attention to the business intelligence market. The VAR Guy’s best guess… Watch for Ingram to make some BI moves before the Ingram Micro VentureTech conference in late April 2010.

The New Disrupters

The next BI wave involves companies like Jaspersoft and Pentaho, both of which are open source companies that work closely with channel partners.

Roughly 70% of Jaspersoft’s revenue now comes from channel partners, up from 60% in 2008, according to Jose Morales, VP of business development at the company. Meanwhile, Pentaho has more than doubled its channel partner base from 2008 to 2009, according to Richard Baldwin, worldwide channel director at Pentaho.

Those data points and plenty more will surface in The VAR Guy’s second annual Open Source 50 survey results. The survey wraps up April 16, with a complete report set to debut in May 2010.

Reality Check

Of course, it’s difficult for The VAR Guy to truly measure progress at Jaspersoft and Pentaho, since both companies are privately held. But our resident blogger is starting to hear more and more from Jaspersoft and Pentaho partners — many of whom target the SMB market.

Oh, and one more thing: Somewhere within this conversation The VAR Guy has to mention SaaS-based Business Intelligence. It’s catching on. But that’s a blog topic for another day…

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