As with other hosted applications, cloud-based business intelligence solutions, such as those delivered through a SaaS model, make sense for companies looking to cut costs and increase agility within the IT department, according to a recent Computerworld UK report.
“Instead of buying servers and software licenses up front as a large, sunk capital cost, paying monthly fees from operating budgets can be less expensive over the life of the application,” the report states.
When deployed correctly, SaaS business intelligence can provide all the insight into business data that on-premise solutions offer, but with a much lower cost. However, challenges do exist to such analytics.
A company may have to determine which hosted data can be used for business intelligence reporting. An instance where this could be a problem, according to the report, is if a marketing manager doesn’t know what data is useful until they are deep into queries.
Forrester Research published a report earlier this month encouraging companies to deploy cloud-based business intelligence. According to authors James Staten and Lauren Nelson, such BI solutions can offer a simple, low-cost manner for getting familiar with more advanced analytics.