All BI vendors to offer cloud option

Jennifer Scott News
10 Jan, 2012

Gartner predicts all business intelligence firms will have cloud computing models, but they won’t bring in big bucks.

Business Intelligence (BI) providers will all have a cloud offering by next year, according to analysts, but it won’t be the main revenue driver of their firms.

A new report from Gartner on the BI market in 2012 claims every major vendor will provide a cloud option in 2013, but the revenues brought in by the services will only amount to three per cent of overall BI revenue for the year.

Andreas Bitterer, research vice president at Gartner and author of the report, claimed there was a “disconnect” between the “marketing hype” around cloud computing and the “pressing challenges” businesses are facing.

“The need for analytics does not match most organisations’ skill requirements; vendor hype for cloud-based BI is not reflected in revenue and customer adoption, and there is a struggle between centralised and decentralised organisational models of BI delivery,” he said.

With cloud specifically, Bitterer claimed many had invested in onsite BI infrastructure, which makes it difficult to ignore and move over to the cloud.

However, those already utilising the likes of customer relationship management (CRM) or payroll services in the cloud will be “more inclined” to BI in the cloud, as he believes they will see it “essentially as an extension of the cloud application.”

The likes of SAP and MicroStrategy have already made their play in the cloud BI market. However, just six months ago, venture capitalist Bernard Dalle claimed the application performed the worst in a cloud model.

"Where the cloud is still kind of lagging behind is more, for example, the Business Intelligence (BI) side,” he told Virtual Clouds. “Whenever you have to move a lot of data from another cloud or on premise to the cloud service, I think it is still a challenge.”

“As people say, data has mass and moving data around is not the most efficient thing to do right now, so I think that is where cloud BI, for example, is still in its infancy, as opposed to CRM and more HR or online advertising [applications].”

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