More and more companies are trying to cut the costs of business intelligence (BI) systems by standardising around a single BI supplier. That is according to BI vendors, who forecast that in 2006 organisations will replace departmental BI systems with centralised BI platforms.

However, many firms will face resistance to such changes, because their staff will be reluctant to see BI tools they are familiar with being replaced, according to experts.

Graham Walter, UK managing director of BI specialist Cognos, said that traditionally firms have deployed BI tools on an ad hoc basis with departments installing technologies as they needed them. "[As a result we have worked with] some companies that had 15 to 20 different BI products," he added.

This approach leads to higher costs, as IT departments have to develop skills to support a wide range of technologies, said Richard Neale product marketing manager at BI vendor Business Objects.

Walter said that growing numbers of customers plan to improve efficiency by standardising around just one BI provider. "[Standardisation] means you can develop a unified skill set while gaining the value of having a single way of looking at information across the company," he added. "We expect the trend to accelerate in 2006."

Choosing a single BI supplier also limits the need for expensive tendering processes, Walter said. "As requirements change [firms that have standardised] don't have to go through a huge due diligence and bidding process, but just add more licences or tools from their supplier," he argued.

But Alys Woodward of analyst firm Ovum warned that although standardisation delivers benefits, companies are unlikely to achieve results overnight.

"Some firms are picking one supplier, but they are not going to rip and replace their other BI tools," she said. "Instead they are setting up a central BI best practice model and competence centre then rolling out preferred products when refreshes are required."

Companies also need to clearly explain to staff the benefits of the changes, according to Woodward. "There is likely to be resistance [to standardisation] from end-users who want to stick with tools they are familiar with," she added.