Free business analytics software. Is it worth it?

“Free BI tools trial, business analytics software for free, free BI reporting with AI-powered insights”– these offers are tempting business people all the time especially as new open-source players enter the market and want cut-through.

To some degree, these pledges are what we like to believe in, even those of us who know better have been tempted to give ‘free pricing’ a go.

We regret to advise that useful business intelligence software isn’t free - especially if you want compatibility with an organization’s ERP system, consolidation of all data sources and high user adoption across your business. Worse than that, companies who think free might work for now are always paying – via time and resources.

The free path is fraught with obstacles such as big data limits, refresh limits, a restricted number of queries, compromised security and permissions, no drill through, no prebuilt content and the need for an expert to build any report. The cost of alleviating these problems can add up – expect $5000 per month if you’re using Power BI, and that won’t resolve everything.

But now to the good news. Subscription-based, cloud-based data analytics software providers offering industry-specific data solutions exist and have been honing their industry knowledge for years. Companies like Phocas already know your data pain points and have built its software accordingly. The software can also be used by anyone in the business, not just analysts, IT experts or sql consultants and a starting package with all the in-built queries and automation starts at under $1000 per month.

To ensure you don’t compromise on the business data analytics you choose for your business, team or division, we suggest that you consider these factors when researching different suppliers.

Compatibility with your ERP system

To ensure smooth integration with your existing systems, ask the software vendor what ERPs they are familiar with and have experience integrating with via connectors or APIs. If your ERP system is one they know, the integration should be smooth and timely. If they haven’t worked with your ERP system, then often you can expect extra costs for configuration, data mapping and implementation delays.

Specific pre-built content for immediate results

Ask the data analytics supplier what industries they work with and whether the software comes with any pre-built content like dashboards, scorecards or metrics created specifically for sales teams, executives and procurement managers. Or how self-service are the business intelligence tools reporting tools ? You and your team need to be able to carry our ad hoc analysis and drag and drop to create bespoke data visualizations.

With the rise of cloud platforms, you will be pleasantly surprised by the number of data analytics tools that are scalable and explicitly developed for data analysis for key industries. Take, for example, the Phocas business intelligence platform that has been created for manufacturers, distributors and retailers. These businesses need actionable insights to deal with fluctuating supply chains, the ability to create real-time demand forecasting and inventory management so Phocas software comes with all this functionality to address all of these pain points and opportunities.

The extra benefit of in-built queries is to reassure new users of the software that they can get results, and when people see straight way that the software is user-friendly, they will be more likely to use it.

Ongoing training and support

It is common when you buy software that the vendor provides training upon implementation, but once the on-boarding is over, the customer service representative is often not there anymore. Do you want to be alone in a rapidly changing technical world?

You need to enquire as to what support is available and its cost. A free customer hotline, a mobile app and access to online tutorials is a good start and a dedicated customer success manager is better. For some software vendors, with a strong customer following and strong retention, they often organize regular user groups. These events provide access to a range of experts in the company and allow people to meet other users and discuss similar experiences.

Machine learning and AI functionality

The is a lot of hype about AI functionality in analytics platforms so get the provider to outline how the technology works with your datasets.Trustworthy data is the backbone of artificial intelligence. Garbage in, garbage out remains a basic truth and AI is only as effective as the data it’s built on. For business people to make reliable decisions, they need a robust data infrastructure that ensures accuracy, consistency and real-time updates of all their business data.

Phocas AI was launched in 2024, a natural language query in the analytics platform. This AI feature lets all users ask questions about top customers, sales performance and product trends and get instant actionable insights. This feature is highly beneficial for new users as they learn the software as they go. Phocas AI outlines the steps taken to obtain concise answers, creating a fast-learning curve for newbies to sales analysis.

This year Phocas will offer a new product called Insights, a new predictive tool to improve sales outcomes. Salespeople will be served segmented action plans—showing them who to sell to and what to sell—driven by their latest sales data, product trends and customer buying behavior.

Scalable with your organization

Businesses are always changing so choosing a BI platform that can cater for future growth and needs is key. It’s important to review the options for flexibility and understand whether the solution can scale to meet the growing volumes of data you produce across your organisation. Can it adapt to your financial reporting and planning needs?

And don't forget to ask that critical question of your data analytics supplier "How often is your solution updated and when can I get access to all the additional functionality?”

BI software comparison 

The idea that free BI software is a cost-effective solution is largely a furphy. While many platforms advertise free tiers or open-source access, these options don’t stack up for the business user —especially where ongoing real-time data feeds, complex ad hoc queries and reliable performance are required. Free tools typically come with significant limitations. So to make data-driven decisions, we recommend the investment in a paid solution.