Business intelligence vendors specialize in selling management software. There are two types: pure-play vendors that operate independently and mega-sellers formed through acquisitions. Debate exists over which type builds the best products.
A business intelligence vendor is a company that specializes in selling business intelligence management software. There are two types of providers. Those in the first category are known as “pure reproduction” providers, while those in the second category are called “mega sellers”. The two types of vendors differ both in size and in their paths to market entry.
When a business intelligence provider is considered as pure play, it operates independently. In other words, the business intelligence software vendor only sells its own product. Many pure-play vendors end up being approached by larger vendors for consolidation, which can result in higher earnings, improved marketing, and higher distribution fees.
A megavendor is a type of business intelligence vendor made up of many smaller vendors. Formed through acquisitions, these mega-sellers are often the result of consolidation. As opposed to purchasing complete products, however, these vendors often choose from multiple offerings and functions. In other words, instead of purchasing a complete product from an independent vendor, the megavendor chooses only the most effective or marketable functions or offerings. These functions can be integrated with other products.
In addition to selling business intelligence software, a business intelligence vendor is also responsible for optimizing for emerging trends in the business intelligence industry. For example, vendors have focused on products that enable business intelligence analysts with real-time intelligence. This is a way to reduce the time between business events and the production of data for analysis of those events. Vendors have also created a trend towards greater visualization of data, which allows for more sophisticated analysis.
There has been a lot of debate in the business intelligence community about which type of vendor, pure-play or megavendor, builds the best products. Many experts in the field believe that there are many strengths of mega sellers. A strong point is that a megavendor will have a much more stable and strong financial base. This allows for greater efficiency and more sophisticated features in your software products.
Others believe that the best type of business intelligence vendor is the pure play vendor, which is an independent operation and therefore smaller. Although pure reproduction vendors are financially limited, many analysts believe that this type of vendor pays more attention to their products, thus creating more effective and accurate software, even if the graphics and visualization capabilities are not as sophisticated. Proponents of pur-play vendors believe that mega-sellers, who have numerous acquisitions, are less likely to pay close attention to ensuring that each specific product performs to its best potential.
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