What is Cloud Analytics?

Cloud analytics is a type of analytics model that moves data processing and storage operations to a private or public cloud network. The model is preferable for companies that have variable analytics needs and cannot afford, or wish to avoid, an on-premise data storage solution. The term can refer to any data analytics or business intelligence carried out on a cloud and is sometimes offered on a software-as-a-service model.


Even so, cloud analytics can be deployed in a variety of ways. Some companies prefer to use hybrid models, keeping some parts of operations—such as data analysis or storage—on-premise while keeping others on a cloud as a means to reduce costs or provide a boost in performance.

Cloud analytics also includes different solutions, such as data warehouses, on-demand business intelligence, and even platform-as-a-service functionality that empower companies to build their own data analytics tools on the cloud.

Finally, cloud analytics is also ideal for organizations that are seeking to scale operations quickly without raising their costs substantially considering cloud storage tends to be significantly more affordable than on-premises hardware.

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How Can I Use Cloud Analytics

There are several advantages that accompany cloud analytics, starting with the flexibility the model offers for organizations. On-premise solutions tend to be custom-built, and scaling becomes expensive when you need to purchase more storage. Moreover, cloud analytics offers a more versatile solution for companies with shifting analytics requirements. Additionally, cloud BI tools provide faster access to real-time data, allowing for better insights and faster, more accurate decision making.

Many organizations use cloud analytics for social media and web traffic due to their immediacy to the data. Social media analytics tools allow companies to make decisions on the spot and visualize how different campaigns and strategies are working in real-time. For websites, understanding the real data available with cloud-hosted BI solutions lets organizations constantly tweak and fine-tune their user experience, as well as uncover any errors or friction points that their users encounter.

Another common use for cloud analytics is data warehousing. For organizations that use cloud analytics, data warehousing on-premise forces data to travel farther before being analyzed. Instead, cloud-based data warehouses supply companies with the ability to directly collect, scrub, and prepare the data to be analyzed as soon as it flows in. This helps reduce wasted resources while concurrently delivering better intelligence.

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