The world of work is increasingly tending toward a hybrid structure, allowing employees the flexibility to seamlessly and collaboratively across time zones. Cloud-based data and SaaS tools have emerged as a vital enabling component for remote work and have proven invaluable in enhancing scalability and cost efficiency.
Business Intelligence (BI) applications hosted in the cloud make business data more accessible than ever. Due to their simplicity of use, quicker execution time, flexibility, and openness, they are suitable for organizations that seek better and quicker ways of analyzing and visualizing their data.
According to a Dresner Advisory Services report, 54% of businesses say cloud BI is either “critical or very important” to current and future strategies. Let’s see how cloud business intelligence software can increase the value of insights for your team and improve the business performance.
What is cloud BI?
Cloud BI applications are deployed on a virtual network, such as the Internet. They enable organizations to access BI-related data, including dashboards, KPIs, and other business analytics.
Some of the most common SaaS applications enterprises adopt include Customer Relationship Management (CRM) applications such as Salesforce, file sharing and collaboration tools such as Dropbox or Box, and help desk software such as UserVoice or Zendesk. This trend comprises business intelligence software adopting the cloud’s flexibility and accessibility.
Cloud BI vs. traditional BI
Business intelligence is about delivering the right information to the right people at the right time, and cloud computing provides an agile way to access BI applications. Here are five differences between traditional business intelligence and cloud BI so that you can choose the best solutions for your company’s needs:
Cost efficiency
Starting with cost, a cloud solution stands out for its affordability. Unlike traditional BI, which often involves hefty initial investments in hardware, software, and infrastructure, cloud BI operates on a subscription-based model.
This allows small businesses to enjoy lower upfront costs. It also reduces or even eliminates expenses related to ongoing maintenance, upgrades, and IT staffing. In the long run, opting for a cloud-based business intelligence tool can lead to significant cost savings. It allows you to allocate resources more effectively elsewhere in your business.
Ease of use
Traditional business intelligence tends to be complex and challenging to navigate. In contrast, cloud BI software runs on more sophisticated technology. This enables developers to create software with a user-friendly experience, intuitive interfaces, and streamlined functionalities.
Business intelligence used to require writing complex queries and reports, but now, with cloud BI software, even non-technical users can easily create visualizations and reports.
Deployment speed
Cloud applications are very simple to deploy since they require no additional hardware or software installations. With these business intelligence apps, you can bypass the lengthy processes of acquiring and setting up physical servers and configuring software and networks.
You can have your BI system up and running in a fraction of the time it would take to deploy a traditional BI system. Moreover, cloud solutions are agile and let you quickly adjust your business intelligence setup. This way, your organization can quickly respond to market changes or internal demands.
Scalability and elasticity
As your business grows, your data analysis needs will change. Cloud BI solutions can easily scale up or down based on your requirements. As a result, you get the flexibility that traditional business intelligence systems, with their fixed capacity, cannot match.
With this level of scalability, you can ensure that your BI capacity aligns perfectly with your business demands, offering a level of agility that traditional setups struggle to provide.
Accessibility
Cloud BI empowers your team with access to data and insights from anywhere, at any time. Whether users are in the office, working from home, or on the move, they can access business intelligence dashboards and generate reports when required. This way, they can make timely and informed decisions, which is crucial for making the most of the opportunities that come your way.
Cloud BI integration capabilities
Another way that cloud BI tools stand out is through their robust integration capabilities. They can connect with various data sources, which is crucial for businesses that handle multiple datasets from different platforms.
Databases
Traditional relational business intelligence databases like MySQL, Oracle, or SQL Server are staples in the data management world. They store structured data that’s essential for your day-to-day operations and transactional processes. Databases provide the reliable, time-tested structures businesses have relied on for decades.
Meanwhile, modern NoSQL databases such as MongoDB or Cassandra offer flexibility in handling large volumes of unstructured or semi-structured data. Businesses need an adaptable business intelligence solution to deal with diverse data types and rapid scalability needs.
Integrating cloud BI with these databases lets you tap into massive data storage for complex analyses and reports that drive informed decisions.
Cloud storage
Knowledge has always been power. That’s why cloud storage platforms like Amazon S3, Google Cloud Storage, or Microsoft Azure Blob Storage are invaluable for businesses.
They offer scalable, secure environments where businesses can store vast amounts of unstructured data – from customer interactions to transaction logs. With cloud business intelligence tools, you can access and analyze information anytime to transform raw data into actionable strategies.
SaaS applications
Applications like Salesforce, HubSpot, and Slack are more than just tools for managing your business operations. They’re also rich data sources. Cloud BI’s ability to integrate with these applications means you get to leverage operational and customer data.
Spreadsheets and files
Even today, most companies continue to use simple Excel spreadsheets and basic file formats such as CSV. Perhaps this is because business intelligence repertoires are easy to obtain, easy to use, and can be applied in a variety of ways.
These data sources can be connected to Cloud BI solutions such as Klipfolio to enable any team member to analyze data and support your company’s data culture.
APIs
APIs are interfaces that enable two or more software applications to exchange information easily. External data can also be brought into a cloud business intelligence tool to provide a wider range of data in real-time.
IoT Devices
The IoT has introduced a new way of data acquisition and business analytics into the market. Now, millions of devices are generating streams of real-time data in one way or another.
Information from these devices is important for industries where real-time data is important for predictive maintenance and operations. For example, IoT data helps manufacturing companies enhance production and reduce the likelihood of disruptions.
Conclusion
Business Intelligence tools are key to helping organizations maintain visibility over their operational management data. Organizations are able to reduce costs and enhance scalability with Cloud BI tools, due to the pay-per-user model.
In the post-Covid landscape, enterprises are increasingly opting for a hybrid approach, and cloud BI solutions provide instant accessibility regardless of location.
