JAN 27, 2010 5:19am ET

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BI in the Cloud? Yes, and on the Ground, Too

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Slowly but surely, with lots of criticism and skepticism, the business intelligence (BI) software-as-a-service (SaaS) market is gaining ground. It's a road full of peril — at least two BI SaaS startups have failed this year — but what software market segment has not seen its share of failures? Although I do not see a stampede to replace traditional BI applications with SaaS alternatives in the near future, BI SaaS does have a few legitimate use cases even today, such as complementary BI, in coexistence with traditional BI, BI workspaces, and BI for small and some midsize businesses.

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Comments (1)
Boris: Thanks for the post...from Kognitio's perspective, you're on target on a number of points:

- We've made a strong case, through our Data Warehousing as a Service offering, that BI SaaS can (as you say) be quickly implemented with a rapidly demonstrable ROI. - The viability of the vendor...indeed, any vendor...must be a carefully considered point. Kognitio's been around for two decades, is solidly profitable, with a referenceable worldwide customer base. - And yes, we believe that BI SaaS will continue to grow as well.

One quick point, however, where there may be a difference of opinion: We've seen any number of clients and prospects express hesitance over placing any of their data in the public cloud, for a number of reasons that have been well documented elsewhere. We believe in the concept of the "trusted cloud," i.e., the data is hosted and analytics performed by a offsite, trusted third-party, who is able to provide you with a higher level of assurance of where your data is being kept, who has access to it, and so forth. Alternately, you can keep your data on-site, and allow your BI SaaS provider access to it to perform the analytics. Either way, companies can retain a higher level of confidence on where their data is being housed and maintain the security and confidentiality they need.

Thanks again for your post. I hope you find this post to be food for thought.

Posted by Steve F | Thursday, January 28 2010 at 10:03AM ET
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