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Interest growing in cloud-based business intelligence tools

Coincidence? Or a truly topically in-tune editor? I’ll go with the latter. On the same day I was assigned a story on the place of cloud-based business intelligence (BI) in the enterprise, Gartner Inc. released a telling study on the subject — and I learned that cloud consulting firm ThinkStrategies Inc. has a conference specifically dedicated to Software as a Service (SaaS) BI coming up in April. Cloud-based BI was literally the hot IT topic du jour.

It certainly makes sense. Back in the waning days of 2011, CIO Executive Board Executive Director Shvetank Shah told us that BI projects were going to be where IT leaders focused their time, attention and money in 2012. In fact, he noted that this is what we’ll be looking at for the next two or three years. The focus on BI is part of a “megatrend” of projects shifting away from big ERP to big information.

A brief about Gartner’s study suggests this shift seems to be playing out right now. But what role will the cloud play? According to the consultancy, nearly one-third of 1,364 IT manager and business users surveyed in Q4 2011 already use or plan to use cloud-based BI tools to augment their BI functions within the next 12 months. A total of 17% said they have replaced or plan to replace parts of their core BI functions with a SaaS offering. What’s behind this? The key drivers Gartner cites are time to value, cost concerns and lack of available expertise.

So, as for the aforementioned assignment: I’ll be digging a little deeper, talking to folks who’ve already taken their BI to the cloud and if or when experts suggest you should too. One user of cloud-based business intelligence tools I spoke with today can’t imagine his company without them. Very pleased with what he and his end users are able to accomplish, he hooked me into an impromptu online demonstration. It certainly looks to be an exceptional tool for this food distribution company that does $3.5 billion in sales. But is cloud based BI right — and ready — to take the enterprise by storm? I’ll bring you some answers on SearchCIO.com next week.

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