What is Cloud BI? Definition, Benefits, and How It Works

Cloud business intelligence (Cloud BI) is the process of using cloud-based platforms to collect, store, analyze, and visualize data. Instead of relying on costly, on-premises hardware, Cloud BI leverages the scalability and flexibility of the cloud to deliver insights anytime, anywhere. It connects directly to cloud data sources like Snowflake, Google BigQuery, Amazon Redshift, or Databricks, and because it’s hosted in the cloud, your provider manages updates, infrastructure, and security for you.

In short, Cloud BI makes it easier for organizations of any size to use business intelligence tools, optimize resources, and make faster, data-driven decisions.

Why is cloud BI important?

It’s difficult to find an organization today that doesn’t use at least one application that is based in the cloud — think customer relationship management (CRM) applications, online collaboration tools, internet file storage, and even some help desk software. It makes sense that organizations would want a cloud solution for their business intelligence as well.

The core of business intelligence is turning data into actionable insights. It’s all about getting the right insights to the right stakeholders at the right time. The cloud is the ideal addition to this process. It provides a fast, scalable way to process, store, deliver, and access data.

Benefits of Cloud BI

Traditional desktop BI often leads to version control issues, data silos, and IT bottlenecks. Cloud BI eliminates these roadblocks while delivering additional advantages:

Increased data visibility

By centralizing data from multiple sources in the cloud, organizations can break down silos and gain a holistic, 360-degree view of the business. This makes it easier to uncover trends and spot opportunities across the entire organization.

Real-time insights and faster decision-making

Cloud BI processes and updates data continuously, so dashboards and reports reflect what’s happening right now. That means leaders and teams can respond quickly to market shifts and operational changes.

Easy collaboration

With data and dashboards hosted in the cloud, teams can securely share insights across departments, locations, and even with external partners. Everyone works from the same source of truth, which improves alignment and teamwork.

Reduced IT burden

Because your cloud provider manages infrastructure, maintenance, and software updates, IT teams spend less time on routine requests and more time on strategic initiatives. Business users also benefit from self-service analytics, reducing their reliance on IT for reports.

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Cost savings and scalability

Cloud BI eliminates the need for expensive on-premises servers and reduces IT overhead. With a subscription-based model, organizations can scale up or down as needed, paying only for the resources they use.

Mobile and remote access

Since Cloud BI is internet-based, stakeholders can access insights from anywhere, on any device. Whether you’re in the office or working remotely, your data and dashboards are always within reach.

Common Cloud BI use cases

Cloud BI is valuable across industries because it puts real-time insights into the hands of more people. Here are some of the most common ways organizations use it today:

Reporting and self-service analytics

Cloud BI enables self-service BI, allowing employees to create and access their own reports and dashboards without waiting on IT. This reduces reporting backlogs and helps teams get the answers they need faster.

Customer insights and personalization

With Cloud BI, companies can combine marketing, sales, and customer service data into a single view. This helps teams uncover customer behavior trends, improve marketing analytics, and deliver more personalized experiences that drive loyalty.

Operational efficiency

Businesses use Cloud BI to monitor supply chains, staffing, and analytics reporting tools in real time. By identifying bottlenecks or inefficiencies, they can take action quickly and reduce costs.

Predictive analytics and AI

When paired with AI data analysis, Cloud BI goes beyond describing what happened, it can predict future outcomes and recommend next steps. This makes forecasting and scenario planning more accurate.

Real-time dashboards and visualization

Cloud BI platforms deliver interactive data visualizations that update instantly as new data flows in. This allows decision-makers to spot trends, drill down into details, and act in the moment.

How does cloud BI work?

To understand how cloud BI works, it’s important to have a solid understanding of the basic business intelligence process. Organizations create raw data every day. As part of data integration, extract, transform, load (ETL) tools collect, process, and store that data in either a data warehouse or a solution like Domo. Once the data is in a usable format and together in one place, stakeholders can begin to analyze it to find answers to their questions. Better business decisions from better data — that’s business intelligence.

Cloud BI moves this process from physical servers and hardware into a cloud environment. Generally, there are three cloud types:

Public cloud

‍A public cloud is an affordable cloud BI option because, in a public cloud, the cost of infrastructure is split among several cloud tenants.

Private cloud

‍A private cloud is a good option for organizations that have to be cognizant of data security and regulatory compliance. It is the most expensive of the three cloud options, but it offers dedicated storage and computing resources.

Hybrid cloud

‍Some organizations take a hybrid approach to the cloud. They may have certain data that is subject to strict regulations and other data that isn’t. A hybrid option allows them to store and analyze their most sensitive data in a private cloud and work with the rest of their data in a public cloud.

What should I look for in a cloud BI tool?

If you’re ready to move your business intelligence to the cloud, there are more options arriving on the market every day. Cloud BI software offers organizations many different capabilities, but those listed below are a few to look for.

Data management

‍Your cloud BI tool should have the capability to extract data from multiple sources, cleanse it for high-quality results, and transform it into a usable format. In business intelligence, the basics of data integration are crucial.

Advanced analytics

‍Advanced analytics capabilities like data mining and effective root-cause analysis are going to become more common needs across industries, so cloud BI tools should be prepared to deliver.

Reporting and visualization

‍Generating rich reports and clear, eye-catching visuals helps every user, no matter their analytics background, to understand the data insights they receive so they can put them to good use.

Collaboration ‍

‍‍The more organizations can share relevant information across departments and teams, the more the entire business can benefit from data insights and move forward together with a unified goal in sight. Your cloud BI tool should allow you to easily share analytics.

How do different industries use cloud BI?

Cloud BI is useful in any industry, but some industries — like entertainment, healthcare, and finance — have adopted the tool more quickly than others. Across industries, cloud BI is being used to democratize data, save money, scale to meet demand, and deliver valuable insights in real time.

How will Cloud BI evolve in the future?

Cloud BI is quickly becoming the default approach to analytics, thanks to its flexibility and scalability. As organizations grow, Cloud BI platforms will expand right alongside them, offering even more powerful ways to manage and analyze data.

Looking ahead, here are some trends shaping the future of Cloud BI:

• AI and machine learning integration: Cloud BI platforms will increasingly embed AI + data capabilities, enabling predictive analytics, automated insights, and natural language queries that make analytics accessible to everyone.
• Augmented analytics: With AI-powered features like conversational interfaces and automated recommendations, business users of all skill levels will be able to uncover insights without needing advanced technical expertise.
• Custom, app-based experiences: Instead of relying solely on static dashboards, organizations will use cloud BI to build tailored apps for each department, streamlining workflows and driving faster action.
• Wider adoption across industries: Cloud BI’s cost-effectiveness is leveling the playing field, allowing small and mid-sized businesses to access the same advanced analytics once reserved for enterprises.

Cloud BI isn’t just a trend — it’s the future of modern business intelligence, helping companies turn their growing data into smarter, faster decisions.