OpinionsData management

According to a 4Q2011 survey by Gartner, nearly one third of organizations either have been using or are planning to use cloud or software-as-a-service (SaaS) offerings to boost their core business intelligence (BI) functions. But what are the push and pull factors of moving BI to the cloud? The explosion of big data is a sure driver.

Rather than viewing it as a challenge, more and more businesses are mining big data in their organizations to help improve business performance and elevate the customer experience.  The increase in cloud adoption, coupled with a more mindful approach to big data analytics, are giving rise to an increasingly attractive proposition for many CIOs -- BI in the cloud.

Leveraging big data can help companies improve competitive positioning, create new revenue streams and generate new businesses. However, for big data to make sense, organizations must be able to have the capability to sort through the mass, make the information easily accessible and equip themselves with analytics that drive better business insights and sales intelligence.

Conventional BI methodologies are increasingly challenged by the onset of big data. Previously, business intelligence was carried out on-premise with system managers conscientiously monitoring corporate databases.

However, the proliferation of unstructured data is rendering on-premise BI tools inadequate. Without the right tools, big analytics is simply too time-consuming. The increased volume and complexity presented by the rise of unstructured data requires tens of thousands of servers running parallel software to handle the varying complex requirements of each dataset. This causes a strain on IT budgets.

The cloud has long been regarded as a convenient and efficient data warehouse. With its versatility, flexibility and ease of access, companies and cloud vendors are understanding the potential benefits of shifting BI functions to the cloud.  

Most BI in the cloud providers operate on a pay-as-you-use and pay-as-you-grow model, so companies need not invest in expensive solutions upfront. Migrating to the cloud makes BI more affordable, enabling enterprise-class BI functions to be made available even to small and mid-sized companies.

The elastic characteristic of the cloud also enables BI functions to readily scale up or down according to business needs. BI in the cloud provides companies with a scalable base which can easily expand to meet surges in data volume. This reduces the compromise on analytics, ensuring the timeliness and integrity of results.