When it comes to Business Intelligence (BI) solutions, organizations have two distinct options to choose from. Traditional, on-site solutions are still the norm, but more and more companies are beginning to switch to a cloud-based approach. Many organizations, however, remain dubious over making the switch. This attitude is understandable, but ultimately can be considered detrimental due to the obvious benefits a cloud based approach brings.
The most obvious benefit is the cost associated with cloud-based BI. With shrinking IT budgets making every dollar go further is vital, and the Aberdeen Group’s CiTDS study found that sites taking a cloud based approach tend to operate with a budget almost six times smaller than a more traditional, on site approach. This is primarily due to the lack of warehouse management and database tools, among other costs associated with maintaining a full BI platform in-house such as infrastructure and hardware.
Cloud based solutions are also ideal for companies that feature a workforce that is widely dispersed geographically. Since it is accessible from near-anywhere, it drastically cuts down the inefficiency of long wait times for generating data reports, and greatly increases the speed of information delivery. 51% of Cloud Based BI users are satisfied with the speed of information delivery, compared to a paltry 18% of On-Site BI users. Two thirds of Cloud based users reported that critical information was delivered on time, compared to roughly half of on-site users.
This increase in efficiency can lead directly to better performance. Cloud BI has shown noticeable improvement in both the speed of preparation of data and the quality of the data going in to the system. This leads to higher quality data analysis, which tends to lead to higher quality decisions being made. This increase in quality and efficiency can lead to revenue growth, which in turn leads to increased operating profit, year over year. The margins on these growths tend to be noticeably higher in organizations using the Cloud for BI over organizations using standard, on-site BI.
Cloud-based solutions for BI are becoming more and more common, due to the increases they offer in accessibility, efficiency, and cost-savings. These can lead directly to an increase in both revenue stream and operating profit, which can give your organization a vital lift.