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What does software as a service mean for business intelligence?
By :   Colin White
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Another difference between the ASP and SaaS approaches is that most ASP-supported applications were monolithic client-server programs with simple HTML Web interfaces. Todays modern SaaS solutions, however, are designed for the Web environment, which improves usability and manageability.


One reason why the SaaS 2.0 model is finding more traction than the ASAP approach is because ASP vendors rushed their offerings to market before performance, security, customization and integration issues were solved, and before many IT organizations were ready to adopt the ASP model. Today, many of these problems have been solved. Both IT and business users are better equipped to take advantage of SaaS. IT experience with Web-based and services-oriented technologies is improving, and business needs such as compliance legislation are providing the momentum for companies to adopt an SaaS approach.


How Will SaaS 2.0 Affect BI?

Business intelligence (BI) vendors are beginning to recognize the importance of SaaS, and the need for BI capabilities in the SaaS environment. Several BI vendors, for example, support the Salesforce.com AppExchange program, which allows customers to develop applications for use with the Salesforce.com CRM service. SalesForce.com also provides interfaces for moving data into and out of the CRM environment. These interfaces can be used to capture Salesforce.com data for an organizations enterprise data warehouse. Informatica has a close working relationship with Salesforce.com for providing data integration services in this area.


Another direction of the business intelligence industry is for vendors to offer their own SaaS offerings. Business Objects recently announced Crystalreports.com, which enables customers to post reports to the site for viewing. Automated e-mail alerts are generated by the service to inform interested parties when new reports are available. The Business Objects service is aimed at companies that need to distribute reports to third-parties, but who dont have the IT resources to develop the infrastructure for managing and securing report distribution. This approach provides a more secure and more efficient alternative to using e-mails containing Adobe PDF report files, for example.


SAS also recently joined the rush to join the SaaS movement with the release of several on-demand business intelligence services. These include access to its complete BI platform, along with supplier relationship management, marketing automation, Veridiem marketing relationship management and anti-money laundering.


Several new business intelligence vendors specializing specifically in SaaS have appeared in the marketplace. Oco Inc., for example, offers its Oco Majik service for producing product, sales and customer analytics. Another example is Host Analytics that provides a Web-based service for business performance management in budgeting, planning, forecasting and financial consolidation.


In summary, there is a clear market direction toward the use of SaaS for providing on-demand application services. This is especially true in the SMB marketplace. This direction is encouraging BI vendors to join the SaaS movement by either supplementing application service vendor offerings, or by producing their own SaaS BI solutions. Regardless, as companies move toward the use of SaaS, they must carefully evaluate the impact of this on the overall enterprise business intelligence system.


About the Author:


Colin is the Founder of BI Research. He is well known for his in-depth knowledge of leading-edge business intelligence and business integration technologies, and how they can be used to build a smart and agile business. With more than 35 years of IT experience, he has consulted for dozens of companies throughout the world and is a frequent speaker at leading IT events. He is also conference chair for DCI's Portal, Collaboration and Content Management conference. Colin has written numerous articles on business intelligence and enterprise business integration. Colin has an expert channel and blog on the B-Eye-Network and can be reached at cwhite@bi-research.com



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