Cloud Analytics: How does it work, Its benefits, Examples

Cloud Analytics: It has gotten more crucial to research customers online and from other sources in addition to communicating with them in person. One of the most important components of analysing your consumers and their data currently is cloud analytics. Cloud analytics are currently used by businesses to swiftly summarise and analyse data for in-the-moment insights. Applications for cloud analytics are countless. For analysing website traffic, factory production efficiency, financial market data, satellite-based climate trends, or comprehending what is being gathered by sensors, cloud analytics is a viable approach. We will discover more about cloud analytics in this post, including its advantages, practical applications, and case studies.

Cloud Analytics
Cloud Analytics

What is Cloud Analytics?

Cloud analytics is the practise of storing and analysing data in the cloud in order to get useful business insights. To find patterns in data and derive fresh insights, cloud analytics makes use of scalable cloud computing and potent analytical tools. An rising number of companies are using data analysis to gain a competitive edge, progress scientific research, and enhance people’s lives in many ways. Data analytics has grown in importance as both the amount and value of data keep increasing.

In a hybrid cloud analytics strategy, some firms do some tasks on-premises servers and others in cloud-hosted environments. To scale their analytics programme as their firm grows, other companies are completely moving to the cloud. Additionally, this lessens the load of conventional on-premises analytics, which may be expensive for an organisation to operate. As was already mentioned, cloud analytics is currently a top priority for the majority of modern firms and is growing in popularity. As a result of the promises of higher productivity and lower operational expenses, cloud migration is quickly rising to the top of many organisations’ priority lists.

  • Several factors make cloud analytics particularly appealing:
  • Global data collection is accelerating at an alarming rate, with a large portion of it being generated and gathered at IOT endpoints or in the cloud.
  • Because they are offered as an automated service and do not need to be deployed and maintained as physical hardware, cloud services are significantly simpler to deploy.
  • Users can activate and deactivate services using the cloud business model as necessary. Customers are no longer responsible for purchasing and operating capital infrastructure, which frees up space in data centres and allows them to just pay for the services they really utilise.
  • Users can use the cloud to allocate the right number of IT resources to the current issue. Users may simply deploy computing and storage and scale them as their needs change because resources can be dynamically resized. Users are freed from having to buy a predetermined amount of physical IT equipment for any project involving data analysis.
  • Users that wish to use the cloud to test a new analytics project as a proof of concept before committing to on-premises investments can benefit from building a hybrid analytics solution.

Organizations can use cloud analytics to: 

  • examine genomic data to better understand hereditary disorders and how to develop treatments
  • To enhance customer happiness and service, learn to recognise patterns in speech, photos, and videos.
  • Examine consumer behaviour to enhance product availability and delivery.
  • To increase the availability of medicines and vaccines, identify disease reporting trends.
  • Investigate hybrid cloud architectures to enhance application performance and lower IT expenditures.

Examples of cloud analytics

Examples of cloud analytics goods and services include hosted data warehouses, software-as-a-service business intelligence (SaaS BI), and cloud-based social media analytics.

The delivery of business intelligence (BI) applications from a hosted site to end users is known as SaaS BI (also known as on-demand BI or cloud BI). The product might not have the same functionality as an internal programme, despite the fact that this architecture is scalable and makes starting simpler and less expensive.

Cloud-based social media analytics involves the remote delivery of resources including programmes for deciding which social media platforms are most appropriate for your purposes, separate programmes for data collection, storage services, and data analyses software.

A hosted data warehouse is a central repository for corporate data that users can access from a remote location managed by the service provider as opposed to the company’s internal systems.

How does cloud analytics works?

Platforms for cloud analytics must be hosted online. They are typically operated on state-of-the-art data centers that can offer the processing speed and storage capacity needed for large-scale data analysis.

Cloud analytics solutions gather and safely store all created data in the cloud, where it can be accessed from any internet-connected device. The cloud analytics system may then organise, process, and analyse the data using proprietary algorithms. These insights are provided to the user in a number of user-friendly formats, including data visualizations.

Although every cloud analytics solution has a unique set of functionality, they all share a few basic elements. These are as follows, according to Gartner, which is quoted in this article:

  • The many sources from which your company’s data is derived are known as data sources. Common examples include data from CRM and ERP systems, social media, and website activity.
  • A model for data: A data model structure obtains data and standardises the relationships between data elements for analysis. Models can be straightforward (using information from a single column in a spreadsheet, for instance) or complicated (involving multiple triggers and parameters in multiple dimensions).
  • Programs for processing: Cloud analytics uses specialised applications to process enormous amounts of data kept in a data warehouse and shorten the time it takes to gain insight (more on this below).
  • It takes a lot of computational power to receive, clean, organise, and analyse huge amounts of data using cloud analytics.

Analytical models are mathematical constructs that can be used to analyse and forecast massive volumes of data.

Data sharing and storage

Data warehousing as a service is offered by cloud analytics solutions, enabling firms to scale rapidly and easily.

In addition to these advantages, AI is growing in significance as a part of cloud analytics. In particular, machine learning algorithms give cloud analytics systems the ability to learn on their own and more accurately forecast future outcomes.

Data consolidation

Getting a unified perspective of the big data created by various, unrelated sources within the organisation is extremely difficult. All of a company’s data sources are integrated through cloud analytics to produce a more complete picture. Regardless of their physical location (or the location of the data), all stakeholders may readily access this data in one location to acquire more precise insights and make better business decisions in real-time.

Sharing and collaboration

Big data silos in specific departments, like finance or HR, have an effect on the entire company. Subject to programmable role-based access rules, a cloud analytics system can more effectively combine data from diverse organisational departments, leading to improved communication and decision-making.


When workloads and data volumes expand quickly, administrators using on-premises platforms must buy and instal more hardware to keep up with the demand. This service approach typically leads to overprovisioning and costs that may become unnecessary if demand declines in the future. By adding more instances online (or removing them when demand declines) and using cloud analytics services only as needed, businesses may scale up to handle demand spikes.

Cost reduction

On-premise solutions necessitate periodic updates and migrations, which, in addition to the expenditures associated with the varied hardware requirements, usually cause system downtime and jeopardise company continuity. Additionally, on-premise analytics need for specialised skill sets that some businesses lack or cannot pay. Organizations can take use of service providers’ in-house expertise and avoid having to buy and maintain extra gear by using cloud analytics.


The IT team of an enterprise normally has several duties, but security monitoring is a full-time concern for cloud hosts. Strong encryption is also used by cloud analytics providers to protect data as it moves across networks. However, the fact that the data is held offsite may be their biggest security advantage: Insider threat actors, which include current and former workers who take confidential or proprietary information with them when they leave the firm, are said to be in charge of 34% of all breaches, according to a recent report.

Cloud Analytics Tools

Tools for cloud analytics are divided into numerous categories. A lot of these are simple to access using your web browser. Here are a few common cloud analytics solutions as examples:

  • Analytics for websites: One of the most popular categories of cloud analytics is website traffic analysis. With the help of these cloud analytics tools, you can better analyse the traffic, conversion rate, bounce rate, and other data of a website so that you can make adjustments that enhance user experience while also boosting income and profitability.
  • Platforms for Sales Analytics: You may manage customers, prospects, assess sales across geographies, and keep tabs on your sales team’s performance with the help of sales analytics software. These findings can help executives create more successful sales strategies by highlighting key trends or signals.
  • Financial Analytics: It goes beyond financial statements to uncover revenue and expense trends and details in your financial results that would be impossible to uncover without a large team of financial analysts.
  • Performance Analytics: This examine sales, production, or other data to identify bottlenecks, sources of expense, and opportunities for improvement.

Cloud analytics is a tool that is rapidly gaining popularity across all industries due to its accessibility, dependability, and the valuable insights that can be gleaned from the data it provides. Cloud analytics could be the ideal solution for any company dealing with large amounts of data and limited resources to process, manage, and analyse it.


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