Post #2: Cloud based BI

I have been working on a project that involves cloud based BI. So for this post, I will be writing about what I have learnt from my experience so far.

Quite like the entire software industry, the trend to move towards the cloud has hit the BI industry. A lot of startups like GoodData, Birst and BIME have cloud products as their primary sources of revenue. Major players like Oracle, Microsoft, Microstrategy and SAP are slowly trying to expand into this space.

There are two variations of cloud BI tools – SaaS BI solutions which run on the cloud where all you need is an internet-enabled device, and desktop BI tools with an online option which allow you to directly share reports on the cloud. The former is definitely more interesting.

Cloud solutions for BI have advantages that are quite similar to cloud computing in general: 

• No installation required: Most solutions offered are SaaS. This means you don’t need to install the software on the client machines and no hardware compatibility issues. 
• High Scalability / Increased flexibility: An organization can quickly increase/decrease the number of users without much of a hassle. It can adapt to changing business needs.
•  Lower costs: There is also no major expenditure like traditional IT environments. As cloud based BI solutions are offered as SaaS, there is no installation cost and no maintenance cost. Upgrades are also free. Of course cost also depends on the licensing model used. There is some variation here, vendors currently offer licenses on a ‘per user’ (with or without platform fee) and hourly basis.
•  Easy access: As all the data is on the cloud, it can be accessed from anywhere through any device. A lot of BI solutions also offer a mobile app to view reports. This also makes for easier sharing of data and facilitates self-service BI.

However, cloud based solutions come with certain caveats:

•  Integration of the tool with data sources is still difficult. Often, connectors need to be designed for specific organizational needs.
• Data visualizations aren’t as powerful as their on premise counterparts. Cloud BI tools are getting there, they just aren’t there yet.
• Security of data is not within the control of the organization. Organizations must rely on the vendor (who may actually do a better job actually).

As stated in this article from Forbes, soon, it won’t be a question of “yes” or “no” rather a question of when and how much. 

References:

http://www.forbes.com/sites/joemckendrick/2013/08/11/business-intelligence-advances-into-the-cloud-but-with-some-caveats/

http://searchbusinessanalytics.techtarget.com/guides/Cloud-business-intelligence-A-guide-to-cloud-BI-technology-and-trends

http://www.indicee.com/cloud-bi/
Image: http://www.jenunderwood.com/