wisdom of crowds business intelligence market study tm – … · 2017-08-24 · this year marks...

September 11, 2012

Dresner Advisory Services, LLC

2012 Edition

Wisdom of Crowds TM Cloud Business Intelligence Market Study

®

Licensed to: Birst

2012 Wisdom of Crowds TM Cloud Business Intelligence Market Study ®

http://www.dresneradvisory.com Copyright 2012 – Dresner Advisory Services, LLC

2

Disclaimer:

This report should be used for informational purposes only. Vendor and product selections should be made

based on multiple information sources, face-to-face meetings, customer reference checking, product

demonstrations and proof of concept applications.

The information contained in the Wisdom of Crowds Business Intelligence Market Study Report is a

summary of the opinions expressed in the online responses of individuals who chose to respond to our

online questionnaire, and does not represent a scientific sampling of any kind. Dresner Advisory Services,

LLC shall not be liable for the content of the Report, the study results, or for any damages incurred or

alleged to be incurred by any of the companies included in the Report as a result of its content.

Reproduction and distribution of this publication in any form without prior written permission is forbidden.



3

The Business Intelligence Renaissance: I’ve been focused on Business Intelligence for nearly a quarter of a century and I’ve never been

more excited about the industry than today. However, opportunities come with new challenges

and this research is designed to help navigate those challenges.

Back in 1993, I first used the term information Democracy to envision a time when every user

would have access to timely, relevant and actionable insight. Since that time, we’ve clearly

made progress. But even a few years ago, this vision seemed elusive.

However, much has changed in just a few years. Enter mobility, collaboration, cloud,

visualization, big data and social, and predictive – to name just a few. And these phenomena

have made Business Intelligence more complete, more accessible, more usable, more flexible,

more scalable and more affordable than ever before. It’s nothing short of a Business Intelligence

Renaissance!

Many of these innovations are targeted at, and are being adopted and deployed by, line-of

business. In many organizations, end users have taken the “wheel” and are now driving

Business Intelligence. But those that have been in this industry for many years know that

Business Intelligence got its start with line-of-business. Early solutions targeted these users –

especially Marketing and Finance. So, perhaps Business Intelligence is returning to its roots. Or,

it may be that an entirely new paradigm is unfolding, with many surprises yet to be discovered.

This year marks our third publishing of the Wisdom of Crowds TM Business Intelligence Market

Study ®. For 2012, we have expanded our efforts to address an emerging area: Cloud Business

Intelligence, the basis for this findings report. In it we explore the current reality, perceptions and

future plans.

Since our inaugural edition in April 2010, Dresner Advisory Services has worked to deliver a

fresh and objective view of the market. With this as our mission, we continue to address shifts in

the market - changing and expanding our research agenda to reflect the needs of our

constituents.

Like the original, the Business Intelligence Renaissance will foster complexity and conflict.

Those with the proper perspective on the market will be able to leverage these changes and

thrive!

Best,

Chief Research Officer Dresner Advisory Services



4

Contents The Business Intelligence Renaissance: .................................................................................... 3

Benefits of the Study: ................................................................................................................. 7

A Consumer Guide: ................................................................................................................ 7

A Supplier Tool: ...................................................................................................................... 7

External Awareness ............................................................................................................ 7

Internal Planning: ................................................................................................................ 7

About Howard Dresner and Dresner Advisory Services: ............................................................ 8

Survey Method and Data Collection: .......................................................................................... 9

Figure 1 - Survey Sources .................................................................................................. 9

Data Collection ......................................................................................................................10

Figure 2 - Numbers of survey respondents 2010 - 2012 .....................................................10

Data Quality:..........................................................................................................................10

About Cloud Business Intelligence: ...........................................................................................11

Executive Summary: .................................................................................................................13

Study Demographics: ................................................................................................................13

Geography: ...........................................................................................................................14

Figure 3 - Geographic Distribution .....................................................................................14

Functions: ..............................................................................................................................15

Figure 4 - Functions Represented ......................................................................................15

Vertical Industries: .................................................................................................................16

Figure 5 - Vertical Industries ..............................................................................................16

Organization Size: .................................................................................................................17

Figure 6 - Size of Organization ...........................................................................................17

Analysis & Trends .....................................................................................................................19

Importance of Cloud Business Intelligence: ...........................................................................19

Figure 7 - Prioritized Technology Initiatives Strategic to Business Intelligence ...................19

Figure 8 - Technology Initiatives by Function .....................................................................20

Figure 9 – Importance of Cloud Business Intelligence ........................................................21

Figure 10 - Importance of Cloud Business Intelligence by Function ...................................22

..............................................................................................................................................23

Figure 11 – Importance of Cloud Business Intelligence by Organization Size ....................23



5

Current and Future Plans for Cloud Business Intelligence .....................................................24

Figure 12 - Plans for Cloud-based Business Intelligence ...................................................24

Figure 13 – Plans for Public Cloud Business Intelligence by Function ................................25

..............................................................................................................................................26

Figure 14 – Plans for Private Cloud Business Intelligence by Function ..............................26

Figure 15 –Hybrid Cloud Business Intelligence Plans by Function .....................................27

Cloud Business Intelligence Feature Requirements: ..............................................................28

Figure 16 – Cloud Business Intelligence Feature Requirements ........................................28

Table 1 - Cloud BI Feature Prioritization by Function .........................................................29

Figure 17 – Cloud BI: Data Visualization Requirement by Vertical Industry ........................30

Figure 18 – Cloud BI: Production Reporting Requirement by Vertical Industry ...................31

Figure 19 – Cloud BI: Interactive Analysis Requirement by Vertical Industry ......................32

Figure 20 – Cloud BI: Feature Requirements by Size of Organization ................................33

Cloud Business Intelligence Architecture ...............................................................................34

Figure 21 – Cloud BI Architectural Requirements ...............................................................34

Figure 22 – Cloud BI: Architectural Requirements by Function (Weighted Mean) ..............35

Figure 23 – Cloud BI: Architecture Requirements by Size of Organization (Weighted Mean)

..........................................................................................................................................36

Cloud Business Intelligence Security .....................................................................................37

Figure 24 – Cloud Business Intelligence Security Requirements ........................................37

Perceived Benefits and Barriers for Cloud Business Intelligence ...........................................38

Figure 25 - Benefits of Cloud Business Intelligence ...........................................................38

Figure 26 - Perceived barriers/limitations for Cloud BI........................................................39

Cloud Business Intelligence Purchasing Preferences ............................................................40

Figure 27 – Cloud BI Purchasing Preferences ...................................................................40

Figure 28 - Cloud BI Purchasing Preferences by Organization Size (Weighted Mean) .......41

Cloud Business Intelligence Licensing ...................................................................................42

Figure 29 – Cloud BI Implementation Preferences .............................................................42

Figure 30 - Cloud BI Licensing Options by Organization Size ............................................43

Figure 31 – Cloud BI: On Premise Requirement by Function .............................................44

Figure 32 – Cloud BI: Freemium Requirement by Geography ............................................45

Figure 33 – Cloud BI: Pay-per-use Requirement by Geography .........................................46



6

Industry and Vendor Analysis: ...................................................................................................48

Figure 34 - Industry Capabilities/Plan for Cloud BI .............................................................48

Figure 35 – Industry Availability/Plans for Cloud BI ............................................................49

Figure 36 – Industry Availability/Plans for Hosting Public Cloud BI ....................................50

..........................................................................................................................................51

Figure 37 - Industry support and plans for Cloud BI architectural features .........................51

Figure 38 – Industry Support and plans for Cloud BI security .............................................52

Vendor Scoring Criteria .........................................................................................................55

Figure 41 - Cloud Business Intelligence vendor ratings ......................................................55

Table 2 - Cloud Business Intelligence Buyers' Guide: Features .........................................56

Table 3 - Cloud Business Intelligence Buyer's Guide; Architecture ....................................57

Table 4 - Cloud Business Intelligence Buyer's Guide: Security...........................................58

Appendix: Cloud Business Intelligence Survey Instrument ........................................................59



7

Benefits of the Study:

The Wisdom of Crowds TM Cloud Business Intelligence Market Study ® provides a

wealth of information and analysis – offering value to both consumers and producers of

Business Intelligence technology and services.

A Consumer Guide:

As an objective source of industry research, consumers use the Wisdom of Crowds TM

Cloud Business Intelligence Market Study ® to understand how their peers are

leveraging and investing in Cloud Business Intelligence.

Using our trademark vendor performance measurement system – users glean key

insights into BI software supplier performance, enabling:

Comparisons of vendor performance to user requirements

Identification and selection of new vendors

A Supplier Tool:

Vendor Licensees use the Wisdom of Crowds TM Cloud Business Intelligence Market

Study ® in several important ways:

External Awareness

- Build awareness for the Cloud Business Intelligence market and supplier brand,

citing Wisdom of Crowds TM Cloud Business Intelligence Market Study ® trends and

vendor performance

- Lead and demand-generation for supplier offerings through association with the

Wisdom of Crowds TM Cloud Business Intelligence Market Study ® brand, findings,

webinars, etc.

Internal Planning:

- Refine internal product plans and align with market priorities and realities as

identified in the Wisdom of Crowds TM Cloud Business Intelligence Market Study ®

- Better understand customer priorities, concerns and issues

- Identify competitive pressures and opportunities



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About Howard Dresner and Dresner Advisory Services:

The Wisdom of Crowds™ Business Intelligence Market Study ® and Wisdom of Crowds TM Cloud Business Intelligence Market Study ® were conceived, designed and executed

by Dresner Advisory Services, LLC - an independent advisory firm - and Howard

Dresner, its President, Founder and Chief Research Officer.

Howard Dresner is one of the foremost thought leaders in Business Intelligence and

Performance Management, having coined the term “Business Intelligence” in 1989. He

has published two books on the subject, The Performance

Management Revolution – Business Results through Insight

and Action (John Wiley & Sons – Nov. 2007) and Profiles in

Performance – Business Intelligence Journeys and the

Roadmap for Change (John Wiley & Sons – Nov. 2009). He

lectures at forums around the globe and is often cited by the

business and trade press.

Prior to Dresner Advisory Services, Howard served as Chief

Strategy Officer at Hyperion Solutions and was a Research Fellow at Gartner, where he

led its Business Intelligence research practice for 13 years.

Howard has conducted and directed numerous in-depth primary research studies over

the course of the past two decades and is an expert in analyzing these markets.

His most recent market studies include the widely acclaimed Wisdom of Crowds™

Business Intelligence Market Study ® (2010, 2011, 2012) and DAS Mobile Business

Intelligence Market Study (September 2010, February 2011 & October 2011).

Howard (www.twitter.com/howarddresner) conducts a weekly Twitter “tweetchat” on

Fridays at 1PM ET. The hashtag is #BIWisdom. During these live events the BIWisdom

“tribe” discusses a wide range of Business Intelligence topics.

Dresner Advisory Services offers a membership destination site for Business

Intelligence professionals – www.businessintelligenceinsider.com – with insightful BI

research and analysis, recorded webinars, live presentations, interactive applications

and customer podcasts.

More information about Dresner Advisory Services can be found at

www.howarddresner.com, www.dresneradvisory.com or www.dresnerblog.com.

http://www.twitter.com/howarddresner

http://www.businessintelligenceinsider.com/

http://www.howarddresner.com/

http://www.dresneradvisory.com/

http://www.dresnerblog.com/



9

Survey Method and Data Collection:

Using our Wisdom of Crowds™ Business Intelligence Market Study ® research

platform, for 2012 we added a new section addressing Cloud Business Intelligence.

Data collection included social media and crowd-sourcing techniques to recruit

participants as well as our own research community of over 1,000 organizations and

vendors’ customer communities (Figure 1).

Figure 1 - Survey Sources

DAS Commmunity 34%

Social Media 11%

Customer Communities

32%

Website and blog 23%

Survey Sources - 2012 Wisdom of Crowds TM Business Intelligence Market Study ®



10

Data Collection

The volume of data collected continues to expand each year. For 2012, we collected

859 completed surveys - 35% growth over 2011 (Figure 2).

Figure 2 - Numbers of survey respondents 2010 - 2012

Data Quality:

All respondent entries were carefully scrutinized and verified to ensure that only

qualified participants are included in the study.

458

633

859

2010 2011 2012

Wisdom of CrowdsTM Business Intelligence Market Study® Data Collection 2010 - 2012

Survey Respondents



11

About Cloud Business Intelligence:

“Cloud Business Intelligence” (Cloud BI) is the concept of delivering Business

Intelligence capabilities as a “service” – using cloud-based architectures (e.g., SOA,

multi-tenancy, elasticity). It promises lowered costs, faster deployment and greater

flexibility over more traditional BI solutions.

Cloud BI can be deployed as a “private cloud” (internally hosted systems), “public cloud”

(externally hosted on the world-wide-web) and as a “hybrid” – leveraging both environs.

However, public cloud is the form most often thought of when speaking about cloud-

based deployment of applications and data.

There has been tremendous attention paid to cloud-based deployment of software over

the past five years, with some great successes with CRM and HR applications (via

public cloud). However, Business Intelligence has seen less adoption and success than

other classes of applications in the cloud. Most stated concerns related to cloud-based

BI center around security and privacy and the practicality of moving large volumes of

data to the web.

With all of that in mind, there continues to be strong investment in cloud-based BI and a

growing amount of interest on the part of organizations to tap into the perceived benefits

that it can deliver. As such, we charted this research project to better understand the

current reality and the perceptions and plans of organizations – across all geographies,

industries, organization sizes and business functions.

To better understand the associated dynamics, we asked respondents to report on 36

characteristics of Cloud BI. These include a variety of user capabilities and architectural

and security features. We have also assessed a number of vendor product offerings

with an eye to cloud capabilities.

Our goal is to provide a guide to understanding the trend towards Cloud Business

Intelligence - including the vendor landscape - to help you develop a plan for moving

forward.



12

Executive

Summary



13

Executive Summary:

Typical of an early market dynamic, 32% of respondents indicated that Cloud

Business Intelligence was “critical” or “very important”. Business users and smaller

organizations assigned it far greater importance.

Most organizations favored “private” over “public” or “hybrid” cloud implementations

for Cloud BI. Business users and smaller organizations showed stronger interest in

public cloud for BI.

Business Intelligence features for cloud that resonated most with respondents

included: “Mobile deployment”, “Social media analysis” and “Collaboration”.

Top “Cloud BI architectural feature requirements” reflected traditional data issues:

including data integration, relational database support and connectors to on-premise

applications and data.

Near-term/primary targets for Cloud BI are enterprise applications and data – rather

than applications and data already resident in the cloud.

ISO 27001 (Specification for Information Management Security) was the top choice

for cloud security, followed by SAS 70 (an auditing specification). A surprising 21%

indicated that they have no requirement for cloud security.

Respondent-perceived benefits for cloud BI include “cost advantage” (36%),

“availability” (16%) and “management” (11%) and are aligned with major selling

points for cloud BI solutions.

The number one perceived barrier to Cloud BI adoption was Security & Privacy

(56%), followed by issues surrounding Data integration (12%) and Performance

(12%).

Most respondents would prefer to purchase Cloud BI solutions through a direct sales

channel with licensing via subscription.

Cloud BI solution suppliers tend to focus upon public cloud offerings hosted by third-

party providers.



14

Study Demographics:

As with many of our studies, we’ve seen a rich cross-section of data across

geographies, functions, organization size, and vertical industries. We believe that, unlike

other industry research, this supports a more representative sample and better indicator

of true market dynamics.

Cross-tab analyses have been constructed using these demographics to identify and

illustrate important industry trends.

Geography:

We were able to attract survey respondents from a wide array of geographies –

including 28% from EMEA (19 countries) and 11% from APAC (7 countries). Although

North America represents the largest group, it is in itself diverse – representing four

Canadian provinces, 34 US states and the Commonwealth of Puerto Rico (Figure 3).

Figure 3 - Geographic Distribution

North America, 56%

Latin America, 5%

EMEA, 28%

Asia Pacific, 11%

Geography



15

Functions:

The IT Department represents the largest single group of respondents, representing

roughly half of the sample. We also experienced strong participation from the Sales and

Marketing, Executive Management and Finance functions (Figure 4).

This distribution across functions has enabled us to develop analyses comparing and

contrasting the plans and priorities of the different departments within organizations.

Figure 4 - Functions Represented

Information Technology (IT)

50%

Executive Management

21%

Sales and Marketing

11%

Finance 8%

Operations 5%

Research and Development, 4% Other

1%

Corporate Function



16

Vertical Industries:

For 2012, vertical industry distribution was similar to 2011 and 2010– with pronounced

participation from Health Care, Financial Services, and Retail & Wholesale. We

encourage the participation of consultants – who oftentimes have deeper industry

knowledge than their customer counterparts. This also yields insight into the partner

ecosystem for BI vendors (Figure 5).

Figure 5 - Vertical Industries

Consulting 15%

Financial Services 10%

Health Care 11%

Retail & Wholesale

7%

Technology 15%

Manufacturing 4%

Education 5%

Other 33%

Industry



17

Organization Size:

We saw strong participation from a balanced mix of small, medium and large

organizations (Figure 6). This year the largest of organizations represent 26% of the

sample, mid-sized organizations at 42% and the smallest of organizations at 32%. As

with previous years, we have found important differences by organization size.

Figure 6 - Size of Organization

1 - 100 Employees 32%

101 - 1,000 Employees

24%

1,001 - 2,000 Employees

7%

2,001 - 5,000 Employees

11%

5,001 - 10,000 Employees

6%

More than 10,000 Employees

20%

Company Size (Number of Employees)



18

Analysis &

Trends



19

Analysis & Trends

Importance of Cloud Business Intelligence:

Although Business Intelligence remains dominated by more traditional approaches and

technologies, the demand for Cloud BI capabilities is on the rise, with more than 30% of

respondents indicating it is “critical” or “very important” to them (Figure 7).

Figure 7 - Prioritized Technology Initiatives Strategic to Business Intelligence

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Open source software

Social media analysis (Social BI)

Complex Event Processing (CEP)

Text Analytics

Software-as-a-service and "cloud computing"

Ability to write to transactional applications

Big data

Collaborative support for group-based analysis

In-memory analysis

Mobile device support

Data mining and advanced algorithms

Integration with operational processes

Advanced visualization

Data warehousing

End user "self service"

Dashboards

Prioritized Technology Intitiatives Strategic to BI

Not Important Somewhat Important Important Very Important Critical



20

When examining Cloud Business Intelligence in the context of other initiatives and by

role, we see that it represents a “new breed” of Business Intelligence – embraced by the

business. Other business-driven initiatives include mobile, social and collaboration

(Figure 8).

Figure 8 - Technology Initiatives by Function

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Open SourceSoftware

Social media Analysis(SocialBI)

Complex EventProcessing (CEP)

Text Analytics

Software-as-a-Serviceand "Cloud"Computing

Ability to write totransactionalapplications

Big data (e.g.,Hadoop)

Collaborative Supportfor Group-based

AnalysisIn-memory analysis

Mobile DeviceSupport

Data Mining andAdvanced Algorithms

Integration withOperationalProcesses

Advancedvisualization

Data Warehousing

End user "selfservice"

Dashboards

Technology Initiatives by Function

Information Technology (IT) Sales and Marketing Finance



21

Typical of a very early market dynamic, study respondents were mixed - with 32%

indicating that Cloud Business Intelligence was “critical” or “very important” (Figure 9).

We anticipate that these percentages will shift in favor of greater importance during the

coming months and years.

Figure 9 – Importance of Cloud Business Intelligence

Critical 10%

Very Important 22%

Important 21%

Somewhat Important 22%

Not Important 25%

Cloud Business Intelligence Importance



22

When examining Cloud Business Intelligence more closely, we see that nearly 40% of

Sales and Marketing believe it is ”critical” or “very important” (Figure 10). In contrast,

Finance and the IT department assign it a much lower priority. Anecdotally, this

conservative stance on the part of IT and Finance may be due to anxieties concerning

privacy, security, reliability and availability.

Figure 10 - Importance of Cloud Business Intelligence by Function

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Finance


Sales and Marketing

Cloud Business Intelligence Importance by Function

Critical Very Important Important Somewhat Important Not Important



23

As with other new technologies and approaches, we see the most adoption of Cloud BI

by the smallest organizations that use new technologies as a competitive differentiator

(Figure 11).

Figure 11 – Importance of Cloud Business Intelligence by Organization Size

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1 - 100

101 - 1,000

1,001 - 2,000

2,001 - 5,000

5,001 - 10,000

More than 10,000

Cloud Business Intelligence Importance by Size of Organization




24

Current and Future Plans for Cloud Business Intelligence

Many organizations appear to favor “private” cloud (internal deployment using cloud

architecture) over “public” or “hybrid” models as a deployment style for Cloud BI (Figure

12). We believe this is driven by a desire to realize some of the benefits of cloud

deployment (e.g., elasticity) without some of the perceived shortcomings of public cloud

implementations. To date, only a small minority have indicated they will be deploying

any form of cloud BI in the near future.

Figure 12 - Plans for Cloud-based Business Intelligence

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Hybrid

Public Cloud

Private Cloud

Plans for Cloud-based Business Intelligence

No Plans Will Adopt in 2013 Will Adopt in 2012 Using Today



25

Line-of-business functions (e.g., Sales & marketing) appear far more inclined to adopt

Public Cloud BI than their IT and Finance counterparts (Figure 13). We attribute this to

a desire to derive the benefits of BI without the perceived delays and expense

associated with traditional BI implementations.

Figure 13 – Plans for Public Cloud Business Intelligence by Function

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Sales and Marketing

Finance

Public Cloud BI by Function

Using Today Will adopt in 2012 Will adopt in 2013 No Plans



26

IT and Finance functions show more aggressive plans for Private than for Public Cloud

BI, with nearly 40% of IT functions indicating adoption by year-end 2013 (Figure 14).

Many IT organizations view Private Cloud as a means to deliver the benefits of cloud

(e.g., service architecture, elasticity) without the perceived risks.

Figure 14 – Plans for Private Cloud Business Intelligence by Function

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Sales and Marketing

Finance

Private Cloud BI by Function




27

Hybrid Cloud BI offers the ability to bridge the divide between Private Cloud and Public

Cloud BI. Although IT gave this model greater credence than Public Cloud, we expected

it to resonate more so than it has (Figure 15). This suggests that IT organizations are

exceedingly conservative related to Public Cloud BI – with less than 25% of IT

organizations planning Hybrid Cloud BI implementations by year-end 2013.

Figure 15 –Hybrid Cloud Business Intelligence Plans by Function

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Sales and Marketing

Finance

Hybrid Cloud BI by Function




28

Cloud Business Intelligence Feature Requirements:

In Figure 16 we examine the BI feature requirements for “cloud”, “traditional” and “both”

platforms. Features that resonated strongly with Cloud BI include “Mobile deployment”,

“Social media analysis” and “Collaboration”. Those that resonated more so with a

traditional BI platform include “Predictive/Advanced Analytics”, “pre-packaged

vertical/functional applications” and “Production reporting”.

Figure 16 – Cloud Business Intelligence Feature Requirements

58.0%

58.0%

60.0%

59.0%

63.0%

65.0%

65.0%

67.0%

63.0%

62.0%

64.0%

7.0%

10.0%

9.0%

11.0%

7.0%

9.0%

11.0%

10.0%

16.0%

19.0%

19.0%

35.0%

32.0%

32.0%

31.0%

30.0%

26.0%

24.0%

23.0%

22.0%

20.0%

17.0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Predictive/Advanced analytics

Pre-packaged vertical/functional

Production reporting

Real-time

Ad-hoc query

Interactive analysis

Personalized dashboards

Data visualization

Collaboration

Social media analysis

Mobile deployment

Cloud BI Requirements

Both Cloud BI Only Traditional BI Only



29

For required BI features we found several areas of contrast, which were significant.

For required features by function, we found general alignment for features such as

Predictive/Advanced Analytics, Mobile Deployment, and Data Visualization and

Production Reporting. While Sales & Marketing respondents assigned a much higher

priority for Ad-hoc Query than IT or Finance, IT and Finance placed a higher priority for

Real-time (Table 1).

Table 1 - Cloud BI Feature Prioritization by Function

Sales and Marketing IT Finance

Mobile Deployment Mobile Deployment

Data visualization

Data visualization Collaboration

Mobile Deployment

Personalized dashboards Data visualization


Ad-hoc query Personalized dashboards

Interactive Analysis

Collaboration Interactive Analysis

Collaboration

Social Media Analysis Social Media Analysis Real-time

Interactive Analysis Ad-hoc query Pre-packaged vertical/functional analytical applications

Production reporting Real-time Production reporting

Pre-packaged vertical/functional analytical applications

Production reporting Social Media Analysis

Predictive/Advanced Analytics



Real-time Pre-packaged vertical/functional analytical applications

Ad-hoc query



30

Data visualization, an area of growing demand, found the greatest levels of interest for

Cloud BI within several key vertical industries. These include Technology, Consulting,

Healthcare and Education. Manufacturing registered the lowest interest levels for Data

Visualization and Cloud BI (Figure 17).

Figure 17 – Cloud BI: Data Visualization Requirement by Vertical Industry

6.10%

0.00%

14.30%

16.70%

10.00%

10.50%

12.50%

7.70%

63.50%

41.70%

57.10%

56.30%

65.00%

65.80%

76.10%

82.10%

30.40%

58.30%

28.60%

27.10%

25.00%

23.70%

11.40%

10.30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Manufacturing

Financial Services

Retail & Wholesale

Education

Health Care

Consulting

Technology

Cloud BI: Data Visualization by Vertical

Cloud BI Solutions Only Both Traditional BI Solutions Only



31

Production reporting, a staple of Business Intelligence, found broad support for cloud

deployment with 60% (or more) of vertical industry respondents indicating it is a

required feature for both Cloud and Both (Cloud and Traditional). Manufacturing was an

exception to this, with more than 70%, indicating production reporting should be

reserved for Traditional BI alone (Figure 18).

Figure 18 – Cloud BI: Production Reporting Requirement by Vertical Industry

6.70%

6.30%

18.80%

5.00%

13.10%

10.30%

5.20%

55.70%

25.00%

58.30%

47.90%

65.00%

60.70%

66.70%

74.00%

37.60%

75.00%

35.40%

33.30%

30.00%

26.20%

23.10%

20.80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Manufacturing

Retail & Wholesale

Financial Services

Education

Consulting

Health Care

Technology

Cloud BI: Production Reporting by Vertical




32

Similar to production reporting, Interactive analysis was a required feature in the cloud

for most verticals, with the exception of Manufacturing which indicate that this should be

reserved for the traditional BI platform (Figure 19).

Figure 19 – Cloud BI: Interactive Analysis Requirement by Vertical Industry

7.40%

0.00%

16.30%

8.70%

16.70%

15.40%

6.80%

7.60%

59.50%

41.70%

53.10%

60.90%

61.10%

66.70%

76.10%

77.20%

33.10%

58.30%

30.60%

30.40%

22.20%

17.90%

17.00%

15.20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Manufacturing

Financial Services

Retail & Wholesale

Education

Health Care

Consulting

Technology

Cloud BI: Interactive Analysis by Vertical




33

In Figure 20 we looked at the percentage of respondents that indicated the importance

of required for combined “Cloud only” and “Both” (i.e., Cloud and Traditional platforms).

We then segmented these responses by organization size: SME (1-1,000 employees)

and larger (1,001 employees and more). This gives us a glimpse into the relative

ranking of required features for Cloud BI, by organization size. Although there are areas

of agreement (e.g., Social Media, Predictive, Pre-packaged apps), smaller organizations

indicated a greater requirement for a broader array of Business Intelligence capabilities,

in the cloud, than larger ones.

Figure 20 – Cloud BI: Feature Requirements by Size of Organization

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%Real-time

Predictive/AdvancedAnalytics

Pre-packagedvertical/functional

analytical applications

Ad-hoc query


Personalized dashboardsInteractive Analysis

Social Media Analysis

Mobile Deployment

Data visualization

Collaboration

Cloud BI Feature Requirements by Organization Size

1-1000 1000+



34

Cloud Business Intelligence Architecture

Topping the list of Cloud BI architectural feature requirements are traditional data issues

including: data integration, relational database support and connectors to on-premise

applications and data (Figure 21). This suggests that near-term/primary targets for

Cloud BI are enterprise applications and data – rather than applications and data

already resident in the cloud.

Figure 21 – Cloud BI Architectural Requirements

12%

14%

16%

19%

20%

22%

23%

23%

27%

28%

32%

33%

33%

27%

33%

32%

35%

37%

36%

39%

34%

41%

38%

35%

40%

39%

28%

25%

24%

25%

22%

25%

23%

21%

18%

22%

22%

18%

16%

18%

16%

16%

14%

12%

10%

9%

12%

7%

7%

5%

5%

6%

16%

12%

12%

7%

11%

7%

6%

10%

6%

6%

6%

5%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

RESTful API

Big Data (e.g., Hadoop) access

Cloud application connections (e.g., Salesforce,Netsuite, Taleo)

In-Memory data support

Cloud Database Connectors (e.g., database.com,SimpleDB, CloudSQL)

Web Services API

Data Virtualization

Multi-tenancy (single executable supportingmultiple customers)

Multi-dimensional database support

Automatic upgrades

Connectors to on-premise applications and data(e.g., ERP, CRM)

Relational database support

Data Integration/Data Quality tools/ETL

Cloud BI Architectural Features




35

Cloud BI architectural requirements varied somewhat by function, with line-of-business

(Sales and Marketing) assigning a much higher priority to cloud application connectors

and cloud database connectors than IT or Finance (Figure 22). In contrast, IT and

Finance ascribe much higher importance to relational database than line-of-business.

Figure 22 – Cloud BI: Architectural Requirements by Function (Weighted Mean)

0

0.5

1

1.5

2

2.5

3

3.5

4RESTful API

Cloud applicationconnections (e.g.,

Salesforce, Netsuite, Taleo)

Big Data (e.g., Hadoop)access

Cloud Database Connectors(e.g., database.com,SimpleDB, CloudSQL)

In-Memory data support

Multi-tenancy (singleexecutable supporting

multiple customers)

Web Services APIAutomatic upgrades

Data Virtualization

Connectors to on-premiseapplications and data (e.g.,

ERP, CRM)

Multi-dimensional databasesupport

Data Integration/DataQuality tools/ETL


Cloud BI Architecture Requirements by Function

Information Technology (IT) Sales and Marketing Finance



36

Consistent with other surveys we’ve done, the largest and smallest of organizations

tend to be most ambitious when considering new technologies. This is also the case

with Cloud BI, where organizations with fewer than 5,000 employees and those with

more than 10,000 tended to assign similar priorities to key architectural components of

Cloud BI (Figure 23). In contrast, mid-sized organizations assigned a lower priority to a

number of requirements, including relational database and multi-dimensional database

support.

Figure 23 – Cloud BI: Architecture Requirements by Size of Organization (Weighted

Mean)

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

RESTful API

Big Data (e.g.,Hadoop) access

Cloud applicationconnections (e.g.,

Salesforce,Netsuite, Taleo)

Cloud DatabaseConnectors (e.g.,

database.com,SimpleDB,…

In-Memory datasupport

Multi-tenancy(single executable

supportingmultiple…

Web Services APIData Virtualization

Automaticupgrades

Multi-dimensionaldatabase support

Connectors to on-premise

applications anddata (e.g., ERP,…

DataIntegration/DataQuality tools/ETL

Relationaldatabase support

Cloud BI Architecture by Organization Size

1-5000 5,001 - 10,000 More than 10,000



37

Cloud Business Intelligence Security

Cloud security remains one of the most pressing issues for Cloud BI adoption. As such,

we surveyed respondents about their requirements for security (Figure 24). ISO 27001

(Specification for Information Management Security) was the top choice, followed by

SAS 70 (an auditing specification). A surprising 21% indicated that they have no

requirement for cloud security.

Figure 24 – Cloud Business Intelligence Security Requirements

21%

12%

10%

8%

7%

6%

21%

0% 5% 10% 15% 20% 25%

ISO 27001 (Specification for Information SecurityManagement)

SAS 70 AICPA Auditing Standard (now SSAE 16)

HIPAA (The Health Insurance Portability andAccountability)

PCI DSS (Payment Card Industry Data SecurityStandard)

FIPS 140-2 (Federal Information Processing Standard)

FISMA (Federal Information Security Management Act )

None

Cloud Security Requirements



38

Perceived Benefits and Barriers for Cloud Business Intelligence

When asked about the perceived benefits of Cloud BI (Figure 25), the majority were

aligned with the major selling points of these solutions – including “cost advantage”

(36%), “availability” (16%) and “management” (11%). The least compelling perceived

benefits included “flexibility”, “mobile support”, and “architecture”.

Figure 25 - Benefits of Cloud Business Intelligence

Flexibility 2%

Mobile support

2%

Architecture 3%

Collaboration 3%

Business productivity

8%

Ease of deployment 9%

Scalability 10%

Management 11% Availability

16%

Cost advantage 36%

Benefits/Advantages of Cloud BI



39

The number one perceived barrier to Cloud BI adoption was Security & Privacy (56%),

followed by issues surrounding “data integration” (12%) and “performance” (12%). Only

a small minority cited Immaturity, “complexity”, or “customization” as barriers (Figure

26). A small, but notable minority (4%), of predominately IT professionals, cited “loss of

control” as a barrier.

Figure 26 - Perceived barriers/limitations for Cloud BI

Immaturity 1%

Complexity 2% Customization

2% Lack of integration 3%

Education 4%

Loss of control

4%

Cost 6%

Performance 10%

Data integration 12%

Security & Privacy 56%

Barriers/Limitations of Cloud BI



40

Cloud Business Intelligence Purchasing Preferences

In general, most organizations would prefer to purchase Cloud BI solutions through a

traditional direct sales channel (49% “critical” or “very important”), followed by on line

purchase (Figure 27). Marketplace and telephone sales purchasing were not favored by

most.

Figure 27 – Cloud BI Purchasing Preferences

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Telephone sales purchase

Marketplace purchase

On line purchase (vendor website)

Direct Sales purchase

Cloud BI Purchasing Preferences




41

Purchasing preferences for Cloud BI varied by organization size. While all organizations

had a strong preference for direct sales, the smallest of organizations (i.e., 100

employees or fewer) had the strongest preference for on-line purchasing of Cloud BI

(Figure 28). In contrast, the largest or organizations (more than 10,000 employees) and

mid-sized ones (101-10,000 employees) preferred a direct sales approach.

Figure 28 - Cloud BI Purchasing Preferences by Organization Size (Weighted Mean)

0 0.5 1 1.5 2 2.5 3 3.5



On line purchase (vendor website)


Cloud BI: Purchasing Preferences by Organization Size

Smallest Mid-sized Largest



42

Cloud Business Intelligence Licensing

We asked respondents about their preference for licensing Cloud BI and found most of

the options presented resonated with respondents, with only a slight difference between

options (Figure 29). Using a weighted mean average, top picks include: Subscription

license, Managed service, and Pay-per use. Freemium, Free trial and Perpetual

licensing options didn’t generate as much interest as other options.

Figure 29 – Cloud BI Implementation Preferences

10%

16%

15%

15%

14%

13%

13%

22%

30%

34%

31%

33%

38%

37%

26%

22%

22%

28%

27%

29%

29%

17%

12%

9%

11%

10%

8%

11%

26%

21%

21%

15%

16%

12%

11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Freemium (limited free version)

Free trial (try and buy)

Perpetual license + annual maintenance

On Premise Option

Pay-per use

Managed Service

Subscription license

Cloud BI Licensing Preferences




43

When examining these licensing options by size of organization, we found that the

smallest of organizations (100 or fewer employees) would prefer Free trial, Subscription

licensing, Fremium and Pay-per use. In contrast, the largest of organizations (10,000

employees or more) indicated stronger interest in Perpetual license and On Premise

Option (Figure 30).

Figure 30 - Cloud BI Licensing Options by Organization Size

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Pay-per use



Managed Service

On Premise Option



Cloud BI: Licensing Preferences by Organization Size

Smallest Mid-sized Largest



44

Looking at the On Premise requirement by function (Figure 31), all functions assigned a

degree of importance to this feature. However, the IT and Finance functions we more

likely to consider this a “critical” capability.

Figure 31 – Cloud BI: On Premise Requirement by Function

12.10%

27.60%

12.50%

12.10%

6.90%

2.10%

28.10%

27.60%

39.60%

33.20%

20.70%

43.80%

14.60%

17.20%

2.10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Information Technology

Finance

Sales and Marketing

Cloud BI: On Premise Option by Function




45

North American respondents were more likely to view a Cloud BI Freemium (a free and

limited version of the solution offering) as critical. When applying a weighted mean to

these results, Latin America and Asia Pacific regions assigned this feature greater

importance (Figure 32).

Figure 32 – Cloud BI: Freemium Requirement by Geography

25.10%

19.50%

9.30%

8.00%

11.30%

14.80%

11.10%

4.00%

20.80%

21.10%

20.40%

44.00%

24.70%

29.70%

50.00%

28.00%

18.20%

14.80%

9.30%

16.00%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

North America

Europe, Middle East, & Africa

Asia Pacific

Latin America

Cloud BI: Freemium by Geography




46

Overall, Pay-per use licensing for Cloud BI was not rated as a high priority by a majority

of respondents. In particular, respondents in North America and Latin America

geographies assigned it the lowest priority (Figure 33).

Figure 33 – Cloud BI: Pay-per-use Requirement by Geography

34.50%

8.30%

20.30%

11.10%

16.80%

29.20%

16.40%

14.80%

23.00%

29.20%

25.80%

33.30%

17.70%

33.30%

24.20%

25.90%

8.00%

0.00%

13.30%

14.80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

North America

Latin America

Europe, Middle East, & Africa

Asia Pacific

Cloud BI: Pay-per-use by Geography




47

Industry and

Vendor

Analysis



48

Industry and Vendor Analysis:

We reached out to the vendor community and asked them to indicate current and future

support for Cloud Business Intelligence.

In Figure 34, we can see that a majority of vendors in our sample provide basic support

for Cloud BI features today, including Production reporting and Data visualization.

Features such as Personalized dashboards, Complex event processing and Text

Analytics have only limited support today (Figure 34)

Figure 34 - Industry Capabilities/Plan for Cloud BI

17%

33%

48%

56%

58%

59%

63%

63%

63%

64%

64%

65%

65%

68%

69%

73%

75%

83%

67%

52%

44%

42%

41%

38%

37%

37%

36%

36%

35%

35%

32%

31%

27%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Text Analytics



Pre-packaged vertical/functional analytical…


Ad-hoc query

Social media Analysis (SocialBI)

Collaborative Support for Group-based Analysis

Data Mining and Advanced Algorithms



Big data (e.g., Hadoop) Support


In-memory support


Data visualization


Industry Cloud BI Features: Today & Future

Cloud BI Today Cloud BI Future



49

Today more vendors indicated that they offer public cloud BI support than either private

or hybrid varieties (Figure 35). According to their responses nearly half indicated current

support for public cloud, with a majority planning public cloud support for BI within 12

months. In contrast, a much smaller minority indicated current or future support for

either private or hybrid cloud BI solutions.

Figure 35 – Industry Availability/Plans for Cloud BI

0 5 10 15 20 25

Public cloud

Private Cloud

Hybrid

Industry Availability of Cloud BI

Available Today 12 Months 24 Months No Plans



50

Today the greatest majority of vendors that responded to our study utilize third party

suppliers to host their cloud-based BI solutions. A smaller number currently host and

manage systems internally (Figure 36). Based on current and future plans, third party

hosting for BI solutions appears to be dominant for in near term.

Figure 36 – Industry Availability/Plans for Hosting Public Cloud BI

0 5 10 15 20 25

Self

Third Party

Cloud BI: Industry Public Hosting Today and Future

Available Today 12 Months 24 Months Not Applicable



51

In Figure 37 we examine current and future vendor support for key architectural features

for Cloud BI. Topping the list of supporting architectural features includes: Relational

database support, Automatic upgrades and Web services API. Those features with the

most limited support include: Cloud database connectors, RESTful API, Connectors to

on premise applications and Cloud application connectors.

Figure 37 - Industry support and plans for Cloud BI architectural features

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cloud Database Connectors (e.g., database.com,SimpleDB, CloudSQL)

RESTful API

Connectors to on-premise applications and data(e.g., ERP, CRM)

Cloud application connections (e.g., Salesforce,Netsuite, Taleo)

Data Virtualization

Multi-tenancy (single executable supportingmultiple customers)


Web Services API

Automatic upgrades


Cloud BI: Industry Architecture - Current and Future




52

User respondents cited ISO 27001 (Specification for Information Management Security),

followed by SAS 70 (an auditing specification) as their top choices for Cloud BI security.

Although SAS 70 is also a priority for vendors, ISO 27001 is a much lower priority

(Figure 38).

Figure 38 – Industry Support and plans for Cloud BI security

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

FISMA (Federal Information Security ManagementAct )

ISO 27001 (Specification for Information SecurityManagement System)

PCI DSS (Payment Card Industry Data SecurityStandard)

FIPS 140-2 (Federal Information ProcessingStandard)

HIPAA (The Health Insurance Portability andAccountability Act)


Cloud BI: Industry Support for Security - Current and Future




53

Aligned with user preferences, vendors appear to be focusing primarily upon the direct

sales channel, followed by telephone sales for Cloud BI offerings (Figure 39).

Figure 39 – Industry sales approach for Cloud BI

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

On line purchase




Cloud BI: Industry Approach to Sales

Primary Secondary No Plans



54

Related to licensing of Cloud BI, vendors are aligned with users for the most popular

mechanism: Subscription licensing (Figure 40). However, for other forms of licensing

user and vendor priorities are markedly different.

Figure 40 – Industry licensing approach for Cloud BI

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Pay-per use


Managed Service



On Premise Option


Cloud BI: Industry Licensing




55

Vendor Scoring Criteria

In rating the vendors, we considered cloud BI features, cloud architecture and cloud

security, as reported by suppliers and weighted by user priority of features and

platforms. A minimum score of 15/36 was required to be ranked.

The top 5 vendors for Cloud Business Intelligence functionality include: Birst,

Information Builders, GoodData, Actuate and MicroStrategy (Figure 41).

Figure 41 - Cloud Business Intelligence vendor ratings

-4

1

6

11

16

21

26

31

36

Jedox AG

Jaspersoft Corporation

Dimensional Insight

Panorama

Quiterian

Yellowfin

Pentaho

JackBeSAP

SAS

MicroStrategy

Actuate Corp

GoodData

Information Builders

Birst Inc

Cloud Business Intelligence Ratings - 2012

TOTAL FEATURES TOTAL ARCHITECTURE TOTAL SCORE



56

Table 2 - Cloud Business Intelligence Buyers' Guide: Features

Actu

ate

Bir

st

Inc

Dim

en

sio

nal

Ins

igh

t

Go

od

Da

ta

In

form

atio

n

Bu

ilde

rs

Ja

ckB

e

Ja

sp

ers

oft

Je

do

x A

G

Mic

roS

tra

teg

y

Pa

no

ram

a

Pe

nta

ho

Qu

ite

ria

n

SA

P

SA

S

Ye

llow

fin


Ad-hoc query


Big data (e.g., Hadoop) Support

Collaborative Support for Group-based Analysis


Data Mining and Advanced Algorithms

Data visualization


In-memory support



Pre-packaged vertical/functional analytical applications


Social media Analysis (SocialBI)

Text Analytics




57

Table 3 - Cloud Business Intelligence Buyer's Guide; Architecture

Actu

ate

Bir

st

Inc

Dim

en

sio

nal

Ins

igh

t

Go

od

Da

ta

In

form

atio

n

Bu

ilde

rs

Ja

ckB

e

Ja

sp

ers

oft

Je

do

x A

G

Mic

roS

tra

teg

y

Pa

no

ram

a

Pe

nta

ho

Qu

ite

ria

n

SA

P

SA

S

Ye

llow

fin

Public cloud

Private Cloud

Hybrid

Multi-tenancy (single executable supporting multiple customers)



Connectors to on-premise applications and data (e.g., ERP, CRM)

Cloud application connections (e.g., Salesforce, Netsuite, Taleo)

Cloud Database Connectors (e.g., database.com, SimpleDB, CloudSQL)

Web Services API

RESTful API

Automatic upgrades

Data Virtualization



58

Table 4 - Cloud Business Intelligence Buyer's Guide: Security

Actu

ate

Bir

st

Inc

Dim

en

sio

nal

Ins

igh

t

Go

od

Da

ta

In

form

atio

n

Bu

ilde

rs

Ja

ckB

e

Ja

sp

ers

oft

Je

do

x A

G

Mic

roS

tra

teg

y

Pa

no

ram

a

Pe

nta

ho

Qu

ite

ria

n

SA

P

SA

S

Ye

llow

fin

ISO 7 1 (Specification for Information Security Management System)


HIPAA (The Health Insurance Portability and Accountability Act)

FIPS 1 - (Federal Information Processing Standard)

FISMA (Federal Information Security Management Act )

PCI DSS (Payment Card Industry Data Security Standard)



59

Appendix: Cloud Business Intelligence Survey Instrument



60



61

wisdom of crowds business intelligence market study tm – … · 2017-08-24 · this year marks...

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