More than one out four of the 1,364 organizations surveyed (27%), in fact, already use or plan to use cloud or software-as-a-service (SaaS) offerings to augment their core business intelligence (BI) functions. In addition, 17% indicate that they are even replacing at least some of their on-premises BI systems with cloud offerings.
Gartner offers three reasons why cloud resonates as a BI/analytics option among a growing number of companies:
Time to value: “The use of SaaS BI may lead to faster deployment, insight and value, particularly where IT is constrained by existing work and/or limited budget so that it cannot respond to demands for information and analysis as quickly as the business requires.”
Cost concerns: “The cost dynamic differs between on-premises and SaaS models. Software purchased as a service can usually be expensed, rather than capitalized, on the balance sheet. Buyers often think that SaaS is cheaper, but the reality is that this is unproven. Gartner’s cost models show SaaS can be cheaper over the first five years, but not thereafter. The long-term benefits lie elsewhere — in terms of cash flow, reduced IT support costs.”
Lack of available expertise: “SaaS analytic applications offer prebuilt intellectual property that can help firms work around a lack of the skills needed to build their own analytic solutions.”