- 54% of enterprises say cloud business intelligence (BI) is either critical or very important to their current and future strategies.
- Microsoft Azure is the most preferred Public Cloud BI provider by enterprises today.
- Enterprises’ interest and adoption in Cloud BI is accelerating due to the COVID-19 pandemic making work-from-home the new normal.
- Public Cloud BI adoption plans in North America lead all other regions globally.
- Google Analytics and Salesforce are the top third-party connectors for cloud BI in 2020, according to the study.
These and other insights are from a fascinating study recently published by Dresner Advisory Services’ 2020 Cloud Computing and Business Intelligence Market Study. The 9th annual report focuses on end-user deployment trends and attitudes toward cloud computing and business intelligence (BI), defined as the technologies, tools, and solutions that rely on one or more cloud deployment models. “We began tracking interest in and adoption of Cloud BI in 2012 when the market was nascent,” said Howard Dresner, Founder and Chief Research Officer at Dresner Advisory Services. “Since then, we’ve seen steady growth in deployments of public cloud BI applications, with organizations citing substantial benefits of traditional on-premises implementations. And, with the current COVID-19 pandemic, we expect this to accelerate.” Please see page 10 of the study for details regarding the methodology.
Key insights from the report include the following:
- A record percentage of enterprises, 54%, say Cloud BI is either critical or very important to their current and future initiatives. Compared to 2018, when cloud sentiment experienced a sharp upturn, mean sentiment rose in 2019, and in 2020 continues its rise from 3.22 to 3.4 (well above the level of “important”). Compared to the early years of our focused study, it appears Cloud BI conquered skepticism and crossed a threshold of credibility. Dresner’s research team expects Cloud BI adoption will continue to improve.
- Nearly 90% of R&D departments rate Cloud BI as critical and very important to current and future initiatives, leading all departments corporate-wide. The majority of Executive Management teams also see Cloud BI as critical & very important to ongoing strategies and initiatives. Manufacturing, supply chain and services that together represent Operations, and are the third most likely to adopt Cloud BI this year, with 50% of departments considering Cloud BI critical & very important to current and future plans.
- 44% of enterprises rate Microsoft Azure as critically important to their ongoing operations, leading all other public cloud providers. Microsoft Azure is the most preferred Public Cloud BI provider by enterprises today. 77% of enterprises report that Microsoft Azure is either critical or very important to their ongoing operations. Amazon Web Services is the second choice with 33% critical, and 66% combined critical and very important. Google Cloud is the third choice, with 22% of enterprises considering them critical and 41% combined critical and very important scores.
- Education has the highest level of interest in Cloud BI, accentuated once the survey was closed by the rapid onset of the COVID-19 pandemic. Dresner’s research team found Education leading all other industries in their interest for Cloud BI apps and platforms. COVID-19’s proliferation has increased that interest as every business is adopting cloud-based platforms at a faster pace than anyone anticipated at the start of 2020. Just over 30% of High Education institutions considered Cloud BI critical, a figure that has most likely jumped by 50% or more due to COVID-19 distancing and remote working restrictions. 60% of Consumer Services says Cloud BI is critical for ongoing operations, followed by Technology, Healthcare, and Business Services.
- Current Cloud BI adoption is highest in Manufacturing (58%), Financial Services (40%), and Business Services (40%). When current use and evaluations of Cloud BI are taken into account, Financial Services leads all industries. It’s interesting to note that Education has the least number of currently active users today, yet the most ambitious plans of all industries included in the survey. Education’s leaders face a wide variety of challenges, from declining enrollments to the urgent need to improve distance learning, two areas greater Cloud Bi expertise can help solve.
- Technology organizations’ most important Cloud BI architectural requirements include cloud application connections, multi-tenancy, and NoSQL support. Business Services enterprises report the highest importance for relational database support, open client connectors, and real-time query to third-party cloud applications. Education organizations give high importance scores to requirements for connectors to on-premises applications, automatic upgrades, RESTful /Web services API, Cloud database connectors, and data virtualization. Financial Services is most drawn to multi-dimensional database support.
- Financial Services enterprises champion Cloud BI security requirements across their organizations, with specific emphasis on PCI DSS (Payment Card Industry Data Security Standard). Financial Services firms also lead all industries in adopting the ISO 27018 (Personal Data Protection), SOC 1 and SOC 2 audit controls, SOC 3 reporting, and SSAE 16 auditing. Manufacturing leads in five of the security standards that pertain to Cloud BI implementations, the most notable being HIPAA (The Health Insurance Portability and Accountability Act).
- Education leads all industries in the variety of Cloud BI data connectors they rely on for integrating with 3rd party apps and platforms. Education gives the highest marks to Google, Dropbox, Qualtrics, Zendesk, and Box integrations. Technology organizations most prefer Google Drive and Jira, while Manufacturing outpaces all others when it comes to Salesforce integration. Business Services’ organizations’ most substantial interest is in Google AdWords. Financial services enterprises lead in several connectors, including Slack, Instagram, Twitter, and YouTube, among others.
- Enterprises are most prioritizing the four features of data integration/data quality/ETL, advanced visualization, ad-hoc query, and production reporting. Dresner’s research team found enterprises are prioritizing 15 top features when evaluating Cloud BI platforms. The group of 15 features most valuable to enterprises includes data integration/data quality/ETL, advanced visualization, ad-hoc query, and production reporting. The lowest-ranked priorities in 2020 include video analytics, social media analysis, complex event processing, and natural language analytics.
- 72% percent of enterprise software vendors describe Cloud BI as critical to their go-to-market strategies compared to 65% in 2019. Post COVID-19, it’s most likely 95% or more of the enterprise software vendors will consider Cloud BI as a must-have, as every organization is now a distributed one. Dresner’s research team finds that BI vendors are proving adept at listening to and responding to customers’ needs as they’ve defined transition strategies for customers from on-premise to hosted or private cloud deployment models.