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Over the previous few years, many small companies have appeared offering fully-hosted business intelligence solutions. Clients, who did not have the needed IT resources to give to the installation and maintenance of their BI atmospheres. In response, even the larger BI retailers began proposing on-demand varieties of their applications, making the market for BI solutions conveyed through a Software as a Service (SaaS) model increasingly competitive.
So, which method is better when it comes to BI?
The reality is, there are pros and cons to each deployment method.
Companies choosing SaaS-based BI do need to have some concerns. The first is security. When choosing to have their business intelligence atmosphere hosted by a third-party worker, a company is certainly resigning a certain amount of control, mainly when it comes to protection of the data related with the application. The merchant defines where the hardware is located, who has access to servers, and how data governance and controlling compliance policies are compulsory.
Another possible issue is the deficiency of vertical knowledge among third-party Business Intelligence solution providers. In order for business intelligence to be most operative, those who be able to the atmosphere must have comprehensive understanding into the industry, as well as the straight business function, that the application will upkeep. That’s why expert Ventana research mentions that companies closely estimate each SaaS vendor’s information of their industry, as well as detailed business procedures and technology best performs, and select one that can address reporting needs as successfully as internal staff would be able to. Some specialists even go as far as to say that companies looking for hosted BI solutions should look for a worker that has already employed data models precise to their specific sector.
Yet another disadvantage is total cost of ownership. While early costs are much lower with presented software, the total expenditures experienced over the cost of the application’s lifetime can be meaningfully greater. This is particularly true if the company will be renting the SaaS solution for a period of five years or more.
And, possibly the highest problem is lack of incorporation. SaaS-based software of any kind can never be combined into an existing technology substructure in the same way that an on-site solution can. In the case of BI services, this can delay the end users’ ability to report directly against real-time operational data.
All in all, no one can say for definite whether on-site or SaaS-based business intelligence is better. The point of the matter is that what is accurate for one company may not work for another. Before selecting an organization approach, companies should be sure to wisely estimate the pros and cons of each, and define which way makes the most sense for them.