The use of business intelligence tools, specifically Software-as-a-Service-based suites, is taking off on a global scale. BI allows firms to gather valuable information and analyze this data to make more informed decisions regarding operations and customer markets. In an age where even a slight competitive advantage can set one company apart from the others, SaaS figures to become an even more dominant force in helping organizations leverage BI tools for years to come.
A recent TechNavio report indicated that the SaaS BI industry will expand at a compound annual growth rate of roughly 31 percent between 2013 and 2018.
The firm explained BI tools and applications include data warehousing, mining, analysis and query reporting solutions. SaaS-based BI is a Web-based subscription model that is operated by a third-party vendor, rather than an on-site system maintained by the client. SaaS in general opens new ways for customers to achieve IT functions without overstepping their boundaries and resources.
"In the pay-per-use model, BI is hosted by a third party from a remote location, and the outsourcing company pays according to the usage. Hence, enterprises employing SaaS-based BI can shift their focus from frequent software updates, maintenance, continual trouble-shooting and increasing storage requirements and concentrate on their core business activities," TechNavio explained.
SaaS market just getting started
Cloud computing services have greatly influenced the IT industry in recent years, allowing even small businesses and startups to leverage the technology without spending their entire budgets to gain functionality similar to on-site hardware but without the management headaches. SaaS is very much in its infancy, suggesting that use of BI-related workloads are just stretching their arms in terms of adoption rates.
An IDC report said the global SaaS and cloud software market generated $28 billion in revenue in 2012, representing year-over-year growth of 28.4 percent. By 2017, this figure is projected to surpass $76 billion, increasing at a compound annual growth rate of 22 percent. The end of the forecast period will also be a time when every $1 out of $6 spent on software will be allocated toward a cloud model.
"Figuring out how to find and capitalize on the enormous cloud services transformation is the number 1 strategic goal of all major IT product vendors. SaaS, and broader public cloud opportunities, represents both a tremendous challenge to meet change heads-on and a huge opportunity to realign with partners, create new capabilities, move into new markets and define new leaders," explained Robert Mahowald, program vice president of IDC.
Adopt IT tools with confidence
If your business is interested in implementing BI tools, we can help. Pinnacle, an Advanced Imaging Solutions company, is a leading IT managed services provider that helps customers adopt and implement the latest technology solutions on the market.
The time to evolve is now. Every year that passes is more time for forward-thinking brands to continue to improve in areas such as BI, gaining insight into valuable information that competitors cannot with legacy equipment. If your company is ready to take the next step, contact Pinnacle today.