According to new data from research firm Ventana, companies are interested in adopting cloud-based analytics. Forty percent of survey respondents said that lowered cost was the primary driver of adoption, 39 percent pointed to improved efficiency of business process, and 30 percent cited better communication and knowledge sharing as the best reason to choose analytics in the cloud.
Despite the positive outlook, however, Ventana also found that legacy analytics tools already in place could hamper cloud adoption — how do companies leverage their existing infrastructure without getting left behind?
Familiarity is the biggest problem facing enterprises looking to make the leap from legacy to cloud-based analytics. Ventana reports that many companies utilizing legacy systems “have defined their business logic and metrics calculations within the context of these tools,” and that these tools may also be an integral part of core applications, such as forecasting and planning.
The result is a system that doesn’t easily support collaboration with cloud alternatives and an employee population familiar with status quo. This is especially true of first-generation analytics solutions targeted at nontechnical users — many of these tools ignore critical complexities related to data integrity in favor of producing useable data visualizations.
According to Computer World UK, chemical companies are leading the way when it comes to analytics investments. Data from Accenture found that 94 percent of chemical company executives had plans to increase digital spending, with 33 percent predicting the best return from new analytics investments.
David Abood, global managing director at Accenture, says that the chemical industry faces “significant logistics and supply chain challenges,” owing to recent shale oil and gas booms, and the industry must adopt new digital technologies to survive. In other words, they can’t afford to wait on legacy integration.
Making the Transition
Legacy systems offer familiarity, however new digital technologies are necessary for survival. Is there a middle ground? In the cloud, absolutely.
It starts by reaching out to analytics consultants, experts in the field who can advise companies on how to minimize risk and achieve ROI. And legacy systems don’t have to be tossed aside — by using cloud alternatives where applicable, it’s possible to smooth the transition from in-house metrics to global standards without losing the unique perspective that makes legacy systems so appealing.