Cloud
is the “new normal”, and the use of business intelligence
is increasing in organizations of all sizes. But does that mean you’ll be using
cloud BI for
your own enterprise?
Although the advantages of cloud computing have been praised
by the press and various vendors, it’s important to resist the temptation to
dive in without a second thought.
There may be good reasons to consider a cloud-based business
intelligence solution, but there may also be elements that mean an
on-premise solution is preferable for your organization. You should first
look at what you need, and decide
afterwards on the best approach to meeting those needs.
We’ve taken a look at four key areas that could sway your
decision one way or the other, and described them below. After reading, you
should have a much better idea of whether cloud or on-premise business
intelligence makes more sense for you.
IT System Cost
Money, money, money. Running business intelligence
in the cloud is often seen as the best way to cut costs. The rationale is
that, by using somebody else’s infrastructure on a pay-as-you-go basis, you
avoid your own capital expenditure and you only pay for what you use.
Indeed, when you consider some of the complex or
resource-intensive BI configurations in use today, the possibility of shifting
the financial outlay needed for high-priced, high-octane systems onto somebody
else sounds attractive. However, there are two aspects that could mean saving
less than you might expect.
First, cloud service providers
need to make money, too. Even if they offer small or zero initial costs,
monthly subscriptions or per usage charges will be calculated according to the
amount of infrastructure required and the risk to the provider. If your BI
vendor insists on massive data warehousing storage or huge processor ratings
for handling queries and analytics, this will be reflected in your bill.
Second, some powerful BI solutions also work well on
inexpensive, commodity hardware – the sort you might have on your site. Smart
use of in-chip memory and columnar database formats allows a BI application to
access only the data needed for a given query, instead of having to ingest huge
datasets. Similarly, fast data store architecture that is especially made for
extensive querying removes the need for
cumbersome data warehousing, while still giving users easy access to all the
data sources of their enterprise.
Technology innovations like these narrow the cost difference
between cloud and on-premise BI solutions. As
you make your decision, look at the real costs for each option, rather than
relying on hearsay or advertising hype.
Data Center Overhead
Data center overhead for BI solutions is
often understood to be simply the load on the IT department for setting up and
supporting the BI system. But this is a mistake. It’s true that any system will
require some time and effort to install and maintain it. However, support for
users and their demands for integrating new sources of data, setting up new
queries, and creating new reports may consume far more resources.
Whether a BI solution runs
in the cloud or on your premises, the big difference in overhead will be in the
possibilities of self-service for the non-technical people in your
organization. When your business end-users can ask ad hoc questions, get their
insights by themselves, and make their own graphics and dashboards to discuss
the results, that frees up your IT staff to work on other projects of value to
your enterprise.
Even if cloud BI platforms
include vendor services for deployment, maintenance, bug fixes, and upgrades,
you should still do your homework. Look at the savings available from intuitive
and effective BI self-service, before factoring in the technical impact of
hosting the BI solution on your server or on somebody else’s.
Information Integrity
and Confidentiality
Scaremongering and fear of letting data go outside the
company walls have sometimes given cloud BI security
a less than perfect reputation. Yet in many cases, data held in the cloud is
safer than if the same data were held on site. Cloud providers invest in both
physical and cyber security to protect all the resources they manage, with
strong encryption, robust permission systems, and continually replicated data
stores. Their ability to keep current customers and attract new ones depends on
their trustworthiness as service providers.
What cloud installations may not offer, however, is the same
level of control that you have on your own premises. For example, cloud
providers may feel greater pressure to release customer data to law enforcement
agencies, if asked to do so. If your organization works with very sensitive
data, such as personal health information or consumer financial records, you
may feel that an on-premises solution is the only way to ensure the stringent
control you require. Regulatory restrictions may also prevent you from using a
cloud-based BI solution in the US, for example, if your data must not leave the
European Union.
Working with Internal
and External Partners
Collaboration between businesses is increasingly popular as
a way to compete in markets. Sharing data, analytics, and insights allows
enterprises to move ahead together with joint projects and ventures. However,
many companies are rightfully wary of exposing their internal systems to
external users, even when these users are their own employees working from
other locations.
Cloud
BI platforms offer possibilities of collaboration that do not compromise
on-premise IT security. In addition, by centralizing data and analytics in one
virtual location, you can create one version of the truth across your entire
enterprise and with your business partners. Well-designed cloud
BI solutions will allow authorized users to access business intelligence
resources from any device, anywhere and at any time. Dashboards can be
available for self-service, encouraging innovative use of business data and BI
queries by non-technical users, whether from your own company or that of your
business partner.
What will You Choose
for Your BI Hosting?
Your decision must be driven by the capability of a cloud or
an on-premise BI solution to best meet your business needs. Besides efficiency
and cost-effectiveness, you will also want a BI system that can easily:
Handle your different data sources
Offload your IT department
Put BI power into the hands of your business users
Deliver results – fast (approaching real time for everyday
BI queries)
Draw up your list of requirements, using the information
above and any other needs you have. Then rank any solutions you’re thinking of
according to how well they meet each requirement. Some solutions offer fully
functional versions for either cloud based use or on-premise deployment, which
may simplify your decision process. In this case, you’ll know that your BI
platform will offer you the performance and flexibility you need wherever you
host it, leaving you free to make the final choice that suits your business and
your budget best, without sacrificing any of the advantages.
Source: Techbullion
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