In this previous post, I discussed the importance of predictive analytics and various industries that would benefit from adopting this B.I. initiative. Well today SAP AG reaffirmed the importance of predictive analytics by announcing their plans to acquire KXEN, a leading provider of predictive analytics technology.

KXEN is revolutionizing the use of predictive analytics to make great business decisions using big data, and appears to be a promising addition to SAP’s existing enterprise B.I. capabilities. KXEN’s flagship product, InfiniteInsight, features a quick and agile cloud-based platform that optimizes various steps in the customer lifecycle. The announcement, along with the existing SAP HANA platform, indicates SAP’s intentions to help companies harness big data and engage users across the enterprise.

As mentioned in this article announcing the acquisition, the market for predictive analytics software is estimated to be worth US$2 billion today and is expected to exceed US$3 billion in 2017. The growth in big data environments requires enterprise-level platforms that can predict the future and help companies make proactive decisions that positively influence them. KXEN offers their predictive analytics tools to line-of-business users and analysts in the workplace, and empowers them by automating the end-to-end modeling process with a strong emphasis on faster deployment and adoption.

The acquisition of KXEN is intended to complement the existing SAP Predictive Analysis software. The new technology can be used to enhance core SAP applications, and may be incorporated into cloud and on-premise SAP applications built on SAP HANA. SAP hopes to help customers use predictive analytics and data mining to make better decisions on big data and also intends to increase their portfolio, allowing them to focus on data-intensive vertical industries such as telecommunications and retail.

SAP expects to complete the acquisition by the fourth quarter in 2013.