The increasing popularity of open-source software will continue to force prices lower
Los Angeles, CA (PRWEB) January 20, 2015
Data mining software has a buyer power score of 4.2 out of 5, representing a high level of negotiation power for buyers. “Rising sophistication and capabilities of open-source software have provided buyers a free alternative to paid offerings, which has offset opposing trends in the market to give buyers high leverage,” according to IBISWorld business research analyst Dale Schmidt.
Open-source software (i.e. software with a source code that has been released to the public) has risen strongly in popularity over the past three years. The open-source programming language R in particular has become the most-used data mining tool overall and the most popular primary data mining tool, according to a Rexer Analytics survey. “This free software has provided buyers a solid alternative to the often-expensive proprietary software, or closed-source software, that market suppliers offer, greatly increasing buyer power,” says Schmidt.
Not all buyers can use open-source software, though, either because it struggles with the data tasks the buyer requires or because the buyer's IT department does not have the time or resources to assemble the relevant code. Still, even buyers that cannot use open-source software alternatives themselves benefit from its existence. Suppliers of paid services have steadily cut prices to better compete with the free software and are now more likely to offer data mining software in bundled discounts with their other offerings.
Despite high buyer power, suppliers retain some power in the market because there are no true substitutes for data mining software and the market is highly concentrated. As a result, buyers that need to purchase proprietary software have no alternatives and only a limited number of suppliers to choose from. In addition, the cost associated with switching suppliers is moderate, which means buyers should be confident in their supplier selection or risk incurring costs if they have to switch to a different supplier. Major vendors include SAS, IBM, TIBCO Software Inc. and Microsoft. For more information, visit IBISWorld’s Data Mining Software procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of data mining software, which is used to discover patterns in very large data sets in order to make informed business decisions. This report includes free and open source versions of data mining software, and excludes database software.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.