This is exactly how we use Excel where I work (a large multinational contact-center provider). Data is stored in SQL Server and then consumed in Excel in several ways:

- Direct query from Excel to SQL Server (This is fast, reliable but users need to know SQL)

- Cube pivot or formulas to SQL Server Analysis Services (Lower user skills needed, but depends on IT/Dev to setup correct measures and processes in Analysis Services)

- Using MS Access as an intermediary between Excel and SQL Server (Using MS Access in the middle is a great way to allow people that don't know SQL to build some simple joins. Comes at the cost of query performance though.)

- Using MS Power BI to connect to SQL Server data (this is in its early days at my company, but is proving to be a great solution for historical reports, where Excel usually shows its limitations)