Business Intelligence Blog from arcplan
2Mar/120

Don’t Fear Cloud Computing (or Cloud BI)

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Cost efficiency, flexibility, and availability of data are key advantages of cloud business intelligence

This year, cloud computing is set to dominate CeBIT, the international IT and telecommunications trade fair held each year near arcplan’s headquarters in Germany. According to a recent survey by the analyst firm IDC, cloud computing will account for 10% of global IT expenditure by the year 2013. While we have taken advantage of cloud offerings in our private lives without hesitation for years (just think of Google Maps and Gmail), businesses have only been comfortable with a few applications (like CRM) residing in the cloud. Many companies still have doubts when it comes to shifting applications into the cloud when security is critical, as it is with business intelligence. Concerns over data security breaches and their consequences are holding some businesses back; however, the advantages of cloud-based BI clearly outweigh the potential drawbacks. Here are our most important reasons for moving business intelligence applications into the cloud.

Cost efficiency is key
Among the greatest advantages of cloud BI are cost savings and reduced capital commitment. Upgrades, maintenance and administration of on-premise software are time-consuming and costly. If companies shift their BI solutions into the cloud, they will no longer have to budget for large, up-front purchases of software packages or carry out time-consuming updates on local servers. In the cloud, upgrades are installed directly by the service provider in near real-time. Using any kind of device (desktop computer, laptop, tablet PC, or smartphone), employees can access the most recent version of their BI solution, independent of location and without having to download upgrades or request updates from the IT department. Users can therefore focus completely on data consumption and analysis, getting the most from BI without having to deal with the infrastructure.

Large- and small-scale flexibility
Companies that manage their own BI systems on-premise have invested in their infrastructure to deal with ever-increasing quantities of data. To analyze data volumes amounting to petabytes or even exabytes and have a 360-degree view of data in real-time, immense processing power and extremely large amounts of memory are required. For processor-intensive BI applications, solutions running in-house can quickly reach their limits. This makes another of cloud BI’s advantages clear: the enormous flexibility afforded by cloud software deployment.

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