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Editorial

The Cloud's Pivotal Role in AI and Business Intelligence

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Cloud BI has gone from optional to essential. Find out what features matter most — and why business leaders are doubling down.

In 2008, several startups emerged for what would become the big data revolution. Big data introduced new ways to harness vast amounts of information, enabling organizations to transform raw data into actionable insights. As "Big Data for Dummies" explained, these technologies changed how enterprises utilized information, unlocking new efficiencies and discoveries.

However, big data alone wasn’t enough. To fully realize its potential, it needed the cloud. The cloud provided the scalability, cost-effectiveness and flexibility required to process and analyze massive datasets. By the time "Designed for Digital" was published a decade later, big data was no longer discussed as a trend on its own. Instead, the authors identified five key technologies driving the digital economy: Social, Mobile, Analytics, Cloud and the Internet of Things.

Today, big data is not a standalone movement but an embedded capability within cloud platforms and data providers. The question now is: where do we stand? The latest research on cloud computing and business intelligence provides valuable insights into how organizations are leveraging these technologies in the modern data landscape.

Why Cloud BI Is Now Critical for Business Success

According to Jim Ericson, vice president and distinguished analyst at Dresner Advisory Services, “Cloud and Software-as-a-Service (SaaS) have consistently ranked as top priorities for modern enterprises. More importantly, success with cloud business intelligence (BI) strongly correlates with overall BI success in 2025. Organizations that are completely successful with BI are 68% more likely to consider cloud BI very important or critical. This data underscores the pivotal role cloud BI plays in driving business intelligence effectiveness.”

Investment trends further reinforce this move. Public cloud adoption continues to accelerate, with 26% of organizations increasing their cloud investments and another 25% maintaining their current spending in this challenging economic environment. While traditional enterprises have progressively embraced cloud services, newer organizations to their business advantage have often launched as cloud-native or cloud-first, making cloud strategy a mainstream, competitive imperative. This shift has enabled startups to rival or even surpass long-established industry players, whose legacy infrastructure and sunk costs often hinder agility and innovation.

Despite this momentum to the public cloud, many large institutions are still straddling both worlds — adopting cloud while continuing to manage legacy technology architectures and entrenched business processes. In some cases, regulatory and operational constraints require organizations to maintain on-premises systems, such as mainframes in financial services or captive data systems for industries with stringent national or security regulations.

This is despite the fact that cloud and service providers have made significant strides in security and reliability. They are increasingly proving themselves as better custodians of data. While hybrid, on-premises and all-cloud environments all remain viable options depending on industry needs and regulatory landscapes, the cloud's role as a strategic asset continues to solidify. As cloud and SaaS technologies become more commonplace and their implementations mature, they remain front-burner priorities for organizations across sectors. Industries attaching the highest importance to cloud BI include healthcare, consumer services, technology, manufacturing and financial services — further cementing its critical role in the future of enterprise intelligence.

Related Article: Why 90% of Companies Are Rethinking Cloud Strategies in 2025

The Must-Have Features of Modern Cloud BI Platforms

The success of cloud BI over on-premises approaches hinges, said Ericson, “on a set of critical features that enhance usability, scalability and security. Among the 34 key cloud BI capabilities our research has identified, data quality remains the top priority, with 87% of respondents ranking it as at least important. Close behind is data visualization, considered essential by 84% of organizations. These features ensure that businesses can trust, interpret and act on their data effectively.”

Beyond these, other essential capabilities include data governance, data preparation, data exploration, data pipelines and integration, ad hoc querying, user-defined alerts and data cataloging. Interest in these features remains strong, reflecting the growing complexity of data environments. Organizations also need robust connectivity, with high demand for relational database support, cloud application and database connectors, integrations with on-premises applications, multidimensional database support, automatic upgrades, RESTful APIs and multitenancy. These capabilities enable seamless data access and management across hybrid and multi-cloud ecosystems.

At the same time, security remains a top concern, especially for GenAI. Some organizations are specific about the industry standards they expect from their cloud BI providers. GDPR and ISO 27001 are the most commonly recognized compliance requirements, followed by HIPAA and ISO 27018. As cloud BI adoption grows, adherence to these standards will be crucial for maintaining trust and regulatory compliance in industries handling sensitive data. However, Ericson said, “While data security is consistently ranked as the top priority in BI technologies and initiatives, our user surveys tell a different story when it comes to specific standards.

When asked which compliance or security standards they expect their BI analytics tools to support, fewer than one-third of users specify any. This has always suggested to me that, while users recognize enterprise risk management and compliance as critically important, they don’t see it as their personal responsibility. They assume these requirements should be handled elsewhere — either baked into the BI tools or managed by another part of the organization — rather than something they actively need to demand or enforce themselves.”

Learning Opportunities

Related Article: Managing Cloud Spend in the GenAI Age

3 Takeaways on the Future of Cloud BI

  1. Cloud BI Is a Competitive Advantage. Organizations that prioritize cloud business intelligence are significantly more successful with BI overall. The scalability, flexibility and efficiency of cloud-driven analytics make it a foundational pillar of modern enterprise intelligence.
  2. Security and Compliance Are Critical. As cloud adoption grows, businesses demand adherence to strict security standards like GDPR, ISO 27001 and HIPAA. Cloud providers must continuously enhance their security posture to meet evolving regulatory and operational requirements.
  3. The Future Is Fully Connected. From data quality to AI-driven insights, cloud BI capabilities like data governance, integration and automation are now essential. As cloud technology matures, its role in enabling artificial intelligence and business intelligence will only deepen, driving strategic decision-making across industries.

The cloud has moved from being a technological option to an operational necessity, shaping the future of AI, analytics and enterprise intelligence.

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About the Author
Myles Suer

Myles Suer is an industry analyst, tech journalist and top CIO influencer (Leadtail). He is the emeritus leader of #CIOChat and a research director at Dresner Advisory Services. Connect with Myles Suer:

Main image: Thomas Reimer on Adobe Stock
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