How Cloud Analytics Works And Its Benefits

Cloud computing, along with Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP), are redefining the way we interact with analytics platforms. What implications does this have for businesses, and how can you benefit?

Did you know?

According to Impact Networking, 46% of enterprises identified and created new products and revenue streams by utilizing analytics. Also, more than 90% of marketing and sales professionals say that cloud analytics helps them get their work done.

What About Cloud Analytics?

This model shifts data processing and storage operations to a remote public or private cloud network. It simplifies and streamlines the process of collecting and analyzing insights to aid decision-making in time and mission-critical scenarios. This option is ideal for companies with budget limitations or those that do not prefer an on-premise data storage solution. It also works for businesses interested in scaling operations quickly without incurring high IT costs as on-premises hardware tends to be expensive.

How Cloud Analytics Work

It works via a software system that an Internet platform hosts. The system operates on servers in data centers which tech corporations regularly update with the latest hardware. These servers support both data center hardware and cloud-based analytics solutions, making information accessible almost immediately. 

Data processing occurs on a public or private cloud to eliminate on-premises compute and storage expenses and maintenance. Businesses leverage tools on cloud analytics solutions to assess large databases. Using proprietary algorithms, the systems then clean, process, and interpret the information to present actionable insights through data visualization. 

You can choose from a variety of methods to deploy cloud analytics, including the popular hybrid model. This involves keeping operations like data storage or analysis on-premise while keeping others on the cloud to enhance performance and cut costs. It is a feasible choice for balancing projects and workloads. As an example, you can use the public cloud to handle computing or storage spikes during busy seasons and the private cloud to keep sensitive apps inside your corporate network. 

How Cloud Analytics Works And Its Benefits

Uses Of Cloud Analytics

To begin with, cloud analytics tools offer remarkable flexibility and versatility as compared to other IT solutions. For instance, on-premise solutions are generally custom-built which translates into higher expenses if you buy extra storage. 

Many companies also utilize cloud analytics for web traffic and social media. In the case of websites, understanding the information available with cloud-hosted business intelligence (BI) solutions fine-tunes the user experience or addresses any pain points that customers come across. Next, social media tools enable businesses to make decisions instantly and visualize campaign performance in real-time. 

What about data warehousing? Cloud-based data warehouses allow businesses to gather, scrub, and prepare information for analysis as soon as it flows in. This leads to improvements in business functions. You can even use tools ranging from operational reporting and business dashboards to analytic applications and reporting. 

How To Choose

Selecting the best cloud analytics platforms requires proper R&D and an in-depth understanding of your business goals. This is because not all platforms are the same, so before making a purchasing decision, identify the solution likely to pay off the most in the long run. The formula is straightforward because you only have to consider the following: 

  • Security

While almost every CSP encrypts data as it travels across a network, some do not secure information when it sits in storage. Ideally, invest in a platform that encrypts data both ‘in transit’ and ‘idle mode’. The solution should also have more granular access controls for users with access privileges and audit efficiencies that identify who accesses what information. These measures will strengthen data integrity and governance across your company as well as protect you from unauthorized breaches.

  • Scalability

The availability of pay as you go cloud analytics means you only invest in the resources you consume. You can also add data analysis and storage capacity when necessary. This effortlessly scales data processing and storing via insights that accurately reflect the ever-evolving market landscape. 

  • Interface

Today, conducting data analysis on mobile devices is common, so make sure the platform you go for incorporates an intuitive and responsive interface. This should not be difficult as cloud apps are becoming more mobile-friendly especially as a part of analytics strategies.

  • Integration

A good cloud architecture should integrate in real-time with your systems for boosting performance, easing maintenance, and staying up-to-date on the latest developments.

How Cloud Analytics Works And Its Benefits


Artificial Intelligence

Cloud-based analytics leads the way to the future integration of AI in business operations. By having a digital data infrastructure in place, you establish the foundation for advanced tools that service providers will eventually introduce to the market.

To further explain, let’s consider a manufacturing factory where tracking information related to machine performance is essential. Manufacturers already have access to tools and resources that monitor and upload data to a cloud analytics solution. Once they upload the information, intelligent algorithms proactively process it and learn about the machine. 

So, when computing experts create more advanced AI and Machine Learning (ML) algorithms, cloud-based analytics platforms will be capable of learning independently. This will help predict future outcomes more accurately as users already have access to the information they previously collected. Companies can then boost efficiency and reduce unexpected downtime especially during uncertain times where guaranteeing revenue is crucial.

Better Functionality

Cloud-based analytics demonstrates its true value by providing end-users with improved functionality. Users receive more accessibility and value when a platform uploads data to services that work across the Internet. This makes it easier for organizations to manage data smartly and represent it in various business contexts that reap tangible results.

Tackles Silos

You achieve cross-organization data integration by capitalizing on cloud analytics. Utilizing data via a cloud analytics platform offers everyday metrics and insights that offer a competitive advantage. Also, the information you store and analyze in the cloud not only makes it easier for your end-users to access data and share insights without delay. It supports seamless communication, collaboration, and decision-making to maximize profitability. 


You receive a safe, centralized space where all your team members can collaborate. This offers complete transparency and visibility, especially in your analytics projects. You can capitalize on this opportunity to evaluate and ensure the quality of the analytics your staff leverages. Moreover, users can simply download data and conduct their analyses in programs such as Microsoft Excel. 

Data Consolidation

Ask anyone about BI, and they will tell you that it is an integral part of running a digital business. Cloud BI and analytics solutions can extract information from integrated apps throughout your IT infrastructure that you can then use for data mining and analysis. 


If your startup or enterprise is yet to benefit from cloud analytics, now is the right time to begin. As we move towards digitization, revisit, and rethink your strategy. Do you want to work smarter, improve efficiency and productivity, and maximize revenue? If so, the only way is to expand your business capabilities by spending on affordable, state-of-the-art technologies, and the cloud is a great place to start.

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