In other news, web analytics software is a very crowded marketplace, the competition is stiff. Best not to enter it unless you have something really new and interesting to offer.
Actually it looks like the market may become a very segmented marketplace with a lot of competitors. This is usually a good thing and its a good place to be for a startup.
And its obviously a very big pain that needs to be solved with lots of customers available.
A worse situation is a winner-take-all market with only a few large companies taking 80% of the market: PC-market (Lenovo,Dell), Social Networking (Facebook,Twitter) etc. Here its much harder to gain a foothold but there are companies that do it eg: AlienWare in the highend PC-Gamer market.
I think you're right, but I also believe there are a lot of different kinds of analytics use cases besides a consumer facing website, and to survive many of these players will probably specialize into those more enterprise-y roles.
Similarly, there is room for an upstart to attack those niches.
