Recent market studies reveal a clear shift toward cloud-based business intelligence (BI) solutions, which are commonly considered easier to maintain and scale. Additionally, cloud BI software requires fewer capital investments compared to on-premises systems, making it attractive for companies with constrained budgets.
The growing demand for cloud business intelligence solutions has driven the emergence of various cloud BI deployment models – public, private, hybrid, and community cloud – each offering different levels of scalability, security, and cost-efficiency. Selecting one of these models is a fundamental decision faced by any company planning to implement cloud BI. To choose the optimal approach, you should carefully evaluate each model’s strengths and limitations.
In this article, experts from Itransition, the IT consulting company providing business intelligence services for 15+ years, explain the specifics of all possible cloud BI deployment types to help you make a sound choice.
Cloud BI deployment types: the comparison
- Public cloud
In this model, BI software is hosted on the public servers of a third-party cloud provider, with the provider taking full responsibility for maintaining the infrastructure (servers, storage, etc.) needed to run a BI solution. The model is based on a multi-tenant architecture, which means the same computing resources are shared among multiple customers of a cloud provider. Although companies use the same computing resources to run applications, their apps and data still remain isolated for security purposes.
Pros
Public cloud infrastructure is shared among hundreds of thousands of companies, each paying for the resources provided; therefore, this type of deployment is commonly considered highly cost-efficient.
Cons
As companies deploying BI solutions in public cloud have less visibility over the underlying IT infrastructure and lack direct control over the security measures of the provider who owns and manages it, this type of deployment is not suitable for companies with strict security requirements or those that need a high level of security control.
BI tools
Microsoft Power BI, Tableau Online, and Amazon QuickSight are popular BI tools that can be deployed in public cloud environments.
- Private cloud
Within this model, a BI solution is hosted in a single-tenant cloud environment, which means the cloud infrastructure resources are used by one company exclusively and are not shared with others. If the private cloud is hosted off-site on a third-party cloud provider’s dedicated servers, the cloud provider is responsible for managing the IT infrastructure and data centers. But if the private cloud is on-site and its infrastructure is based on the company’s own servers, it assumes full responsibility for all aspects of the infrastructure management.
Pros
As all cloud computing resources (servers, storage, virtual networks, etc.) are dedicated exclusively to a single organization, companies have greater visibility and control over their cloud environments, network configurations, and security controls, which is why the private cloud model is considered the most secure.
Cons
Whether a cloud BI solution is deployed on a vendor’s cloud or a company’s private cloud, this model is generally considered the most expensive.
BI tools
Multiple BI tools can be deployed in a private cloud, including Power BI Report Server, Qlik Sense Enterprise, and SAP BusinessObjects BI Suite.
- Hybrid cloud
This model involves distributing different BI software components across multiple cloud environments and connecting them via APIs, middleware, or other integration solutions to ensure their seamless communication. For instance, the company can store data and host BI functionalities that handle highly sensitive information in a private cloud, while hosting functionalities that do not require strict security control in a public cloud.
Pros
The hybrid cloud approach enables companies to leverage the cost-efficiency of the public cloud and greater control associated with private clouds, taking the “best of both worlds.”
Cons
Maintaining a BI solution deployed across multiple cloud environments can be challenging due to high operational complexity and the need to allocate experienced IT personnel with skills in managing complex cloud infrastructures.
BI tools
Power BI Premium, Tableau Server, and Domo are examples of tools that support deployment across both public and private clouds.
- Community cloud
In this model, multiple companies with similar technical needs, data security concerns, and regulatory compliance requirements share resources within the same cloud infrastructure, which is exclusive to their specific business community. Examples of these communities include several banks that require PCI DSS-compliant environments for interbank transactions, and hospitals that require HIPAA-compliant environments to securely share patient data. Depending on the situation, the IT infrastructure can be managed by a third-party cloud provider hired by the community or jointly managed and provisioned by companies within the community.
Pros
This model is reputed as both cost-efficient and highly secure. It enables companies to share IT expenses associated with cloud infrastructure management with other companies from the same business niche. At the same time, it allows to tailor security measures within a community cloud to the requirements and compliance standards of a specific community.
Cons
As multiple companies have to develop sets of agreed-upon data management and usage protocols and strictly follow them, this model can be complex to implement and use.
BI tools
Tableau Server and SAS Business Intelligence can be noted as BI tools offering community cloud deployment options.
Selecting the right cloud BI deployment option
In short, companies should start by assessing their business and technical requirements (ease of use, cost-efficiency, data security control, etc.) and defining which of them are of the highest priority. After that, a company should carefully assess each cloud BI model against its unique business needs and priorities to find the best fit for the organization.
For example, suppose a company has a limited budget and is looking for a cost-effective deployment model for a BI solution. In that case, it should consider using public cloud and community cloud as its foremost options. Of course, the second option is only feasible if the company has organizations with similar technical and security requirements with which it can share cloud infrastructure.
In turn, if data security and control are paramount for a company, and it has sufficient resources to invest in cloud infrastructure, it can consider hosting a BI solution in a private cloud. Suppose a company aims to strike a balance between the economic efficiency of BI software deployment and stringent data security and control requirements. In that case, a hybrid deployment can be the most viable option.
Final thoughts
Choosing between public, private, hybrid, and community cloud deployment models is a fundamental decision faced by any company intending to implement a cloud-based BI solution. You can select the best one by comparing different models against your needs for security, ease of use, and cost, but if you are still unsure about which model is best, consider contacting a reliable provider of business intelligence services.
A BI services provider can assess your unique business and technical requirements in detail and use its expertise to select the most suitable model that aligns with your company’s priorities. After choosing the model, third-party experts can also assist you with the organizational and technical aspects of BI implementation, including project planning, data architecture design, development, and post-launch support.
