Here is how Gartner describes a "Leader":
Leaders are vendors that are reasonably strong in the breadth and depth of their BI platform capabilities, and which can deliver on enterprisewide implementations that support a broad BI strategy. Leaders articulate a business proposition that resonates with buyers, supported by the viability and operational capability to deliver on a global basis.
For "Challengers", they provide the following definition:
Challengers offer a good breadth of BI platform functionality and are well positioned to succeed in the market. However, they may be limited to specific technical environments or application domains. Their vision may be hampered by a lack of coordinated strategy across the various products in their BI platform portfolio. Or they may lack the sales channel, geographic presence and industry-specific content offered by the vendors in the Leaders quadrant.
You recognize the leaders that Gartner says have the most ability to execute successfully in the BI software industry: IBM, Microsoft, Oracle, and SAP. You also see SAS and MicroStrategy in the mix. IBI is a wallflower standing alone in the corner, but is considered by Gartner to be more innovative than Microsoft.
Gartner has really good things to say about IBI's BI product, based on comments from customers, many of whom say they use WebFOCUS as their standard BI tool. Gartner praises IBI for its new offerings, but points out that these innovations have not really helped IBI move beyond its core strengths in enterprise reporting.
On the negative side, Gartner points out that IBI is "late to the game" if they want to get into the on-demand side of BI (self-service, analytics, and OLAP). Gartner seems to view IBI as a vendor that is primarily positioned to deliver static enterprise information to report consumers.
Gartner continues to complain about the small amount of revenue earned by IBI through third-party channels, but points out that IBI is making an effort (by rehiring ex-IBIer Tom Rydz and putting him in charge of partnerships in early 2008). Gartner points out that IBI has twice as many North American direct sales reps as indirect throughout the world.
Gartner also waves a big red flag for IBI: a large chunk of its business is done with financial services firms -- a major downturn there means major downturn for IBI?
Gartner points out the continuing problem that IBI has little name recognition in the BI market despite having been a player since the 1970s. (Case in point: when I mentioned IBI to a Microsoft manager earlier this week, he said, "Information Builders? Never heard of them.") Even within customer sites, IBI applications are not explicitly branded, so users do not know they are using WebFOCUS.
Be sure to read the entire article, compliments of SAS, who wants everybody to know Gartner still recognizes them as the most visionary of the BI leaders.