How do you balance the trade-offs between cloud and on-premise BI and analytics platforms?

1 Cloud benefits

One of the main advantages of cloud BI and analytics platforms is that they can handle large volumes of data from various sources, without requiring you to invest in expensive hardware, software, or maintenance. Cloud platforms also enable you to access your data and insights from anywhere, anytime, and on any device, which can boost productivity and collaboration. Moreover, cloud platforms can provide you with the latest features and updates, as well as integration with other cloud services, such as artificial intelligence (AI) and machine learning (ML).

2 Cloud drawbacks

However, cloud BI and analytics platforms also come with some drawbacks, such as dependency on internet connectivity, bandwidth, and service availability. If your internet connection is slow or unreliable, or if the cloud provider experiences downtime or performance issues, you may not be able to access or analyze your data. Additionally, cloud platforms may pose some security and compliance risks, especially if you deal with sensitive or regulated data. You may have less control over where your data is stored, who can access it, and how it is protected. You may also face some challenges in migrating your existing data and applications to the cloud, or switching between cloud providers.

3 On-premise benefits

On the other hand, on-premise BI and analytics platforms offer you more control, security, and customization over your data and infrastructure. You can choose the hardware, software, and network configuration that best suit your business requirements, and you can manage and maintain them according to your own standards and policies. You can also ensure that your data is stored locally, and that you comply with any relevant regulations or industry standards. Furthermore, on-premise platforms can leverage your existing IT resources and expertise, and integrate more easily with your legacy systems and applications.

5 Balancing trade-offs

Balancing the trade-offs between cloud and on-premise BI and analytics platforms depends on a variety of factors, such as business goals, budget, data characteristics, and user preferences. When making a decision, one should consider the volume, variety, and velocity of their data; the security and compliance of their data; and the functionality and usability of their platform. For example, large amounts of frequently changing data may benefit from the cloud's scalability and flexibility, whereas sensitive or regulated data may require the on-premise's control and security. Additionally, if advanced or customized features are needed, the on-premise's customization and integration may be preferable. However, if simple features are desired that can be easily accessed or updated in the cloud, then the cloud's convenience and cost-effectiveness may be best suited.

6 Hybrid solutions

Another option that you can explore is a hybrid solution that combines the best of both worlds: cloud and on-premise. A hybrid solution allows you to use the cloud for some of your data and analytics needs, such as data ingestion, processing, or visualization, while keeping some of your data and analytics on-premise, such as data storage, analysis, or reporting. A hybrid solution can help you optimize your performance, security, and cost, as well as enable you to migrate or transition between the cloud and on-premise at your own pace and convenience.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?