Hello SQLUser,
Excel as an OLAP reporting tool does have its' issues.
1. The first issue is where are you going to get the data from. If the data only resides in Excel, than you are limited to the Excel memory space, thus reducing the amount of data you can look at. If the data resides out-side of Excel, like SQL Server, than you do not have this restriction.
2. Excel is the most popular analytical interface for OLAP today. That is, is is used by "power users" Using and creating an Excel Pivot table is not for executive users, but for those familiar with Excel. There are limitations within the pivot table enviroment include: read-only access; fixed grid display; limited formatting; etc..
3. One popular approach is to use an Excel OLAP add-in that extends the Power of Excel to be used as an OLAP reporting tool. There are many products with different price points in this space, some work specifically with Microsofts OLAP Services Product offering.
4. If the data resides in another OLAP database, you may be able to access the data from within Excel and report on it if, and it is a big IF, it supports OLE DB for OLAP. Meaning, that it will connect to an Service Provider. There aren't many out there. The list is basically the Microsoft OLAP and SQL product and Applix TM1 Server.
Hope this info helps.
OLAPman