The analytics market was once dominated on one hand by Business Objects, Cognos and Crystal and on the other hand accountants, analysts and line of business people made MS Excel the software of choice for individuals.
Then along came agile competitors like Qlik, and Tableau, Sisence, Birst and amongst these Tableau was the Gorilla.
It is one thing to have line of business people use revenue budgets to bypass central IT and license these easy to use agile BI/Analytics apps but quite another to implement successful BI & Analytics projects. Research shows the disappointing results experienced.
"Broken Links: Why analytics investments have yet to pay off, from the Economist Intelligence Unit (EIU), found that although 70% of business executives rated analytics as “very” or “extremely important”, just 2% are ready to say they have achieved “broad positive results”
I propose five main factors that could undermine Tableau.
- need for a new breed of BI & Analytics solution provider. - follow the link
- Microsoft with Power BI, Salesforce with Wave Analytics, AWS with Quicksite steal market share
- The traditional mega vendors like SAS, SAP and IBM retain and expand enterprise customers with uptake in Big Data, AI and Augmented Intelligence projects
- Tableau & Qlik are themselves assailed by even more innovating competitors like GoodData, Looker, DOMO etc.
- ISVs and SaaS Solution Providers up their game by embedding world class analytics in enterprise apps from specialist vendors like Logi Analytics
The writing may well be on the wall with discounting the only defence which undermines the whole model anyway.
Wunderlich Securities analyst Bill Choi has just downgraded his rating on Tableau (DATA) shares (via Tech Trader Daily) from buy to hold. The analyst’s price target is also getting cut from $58 to $50. The main reason for the pessimism is an expectation that competition from much larger rivals Amazon.com (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) is going to intensify further this year. While Tableau (DATA) still offers strong visualization and analytics, the broader shift away from on-premise deployments toward cloud-based services poses a potential threat, since most of Tableau’s revenue is generated through on-premise deployments.