Over a million developers have joined DZone.

SaaS BI Growth Predicted

DZone's Guide to

SaaS BI Growth Predicted

· Big Data Zone ·
Free Resource

How to Simplify Apache Kafka. Get eBook.

The Interactive Data Corporation released a recent study predicting that the Software-as-a-Service (SaaS) Business Intelligence (BI) market will experience 22.4% growth over the next three years.  Businesses have increasingly been turning to on-demand software for things like CRM (Customer Relationship Management).  The SaaS model for BI lends itself well to fluctuating retail, and there's no commitment to a heavy, on-premises BI platform.  Ultimately, SaaS makes the advantages of BI readily available to the companies that don't require a lot of customization.

Companies will notice that several aspects of the SaaS model make it more advantageous and cost-effective in some cases.  For example, if a retail company does most of its business during the holidays, the company can use a lighter, on-premises BI data mart during the year and supplement  BI handling with on-demand SaaS when peak business time arrives.  The biggest advantage of SaaS BI is for the companies that don't want to commit to a full-featured, on-premises BI platform.

BI Dashboard -  Lucid

Distribution Market Advantage is one company that didn't want to make the full-fledged commitment to a BI platform.  As a marketing Co-Op for food distributors, DMA didn't have the technical expertise to support an on-premises BI platform, and the continuous cost of one didn't fit their business model.  The BI on-demand model has worked much better for the company and their customers have easy access to reports and analytics.  Their customers interact with the system more than the company itself.  The system prevents excessive deliveries and other supply chain inefficiencies.  DMA now has about 1,400 user-generated reports in its system.

Another organization that has benefited from SaaS BI is Children's Choice corporate child care centers.  They use BI to track chidren-to-employee ratios, which prevents over-staffing.  The SaaS provider is also able to meet the needs of the company's continuing growth as they set up more centers.  

However, SaaS BI isn't the best choice for all companies.  An organization that has a lot of different custom applications and data models will have difficulty cleaning up all of their data.  Forrester says that 80% of a typical BI project is data preparation.  In those situations, it is sometimes more beneficial to obtain in-house, custom BI platforms.

When choosing an SaaS BI vendor, the analysis requirements should be considered first, says Forrester.  Some customers just want a dashboard and report generator.  Other companies may need a wide range of tools like text analysis, ad-hoc querying, and individual workspaces.  Potential hidden costs and security should also be taken into account when adopting SaaS BI.

12 Best Practices for Modern Data Ingestion. Download White Paper.


Opinions expressed by DZone contributors are their own.

{{ parent.title || parent.header.title}}

{{ parent.tldr }}

{{ parent.urlSource.name }}