What is Cloud Analytics?

Cloud analytics is a process whereby business data is stored in the cloud for further analysis. With this process, the data is harnessed and used to gain valuable information to help grow or develop a business. It deals with business data analysis similarly to an on-premise solution. Algorithms of cloud analytics are deployed to assess and analyze large data sets. This is used to identify possible patterns and trends further. They can predict future events while producing a wide range of valuable information for an organization's decision-makers.

It is usually hosted as a service whereby businesses are meant to purchase as much as they need. This means that cloud-hosted analytics allows business users to pay as they use the solution. Another option is on-premises analytics.

Cloud vs. on-premises solutions

It seems to have more efficiency when compared to on-premises business analytics. On-premises data analysis is a self-hosting solution, which means that the organization will need to invest fully in deploying the infrastructure. This means that the business will have to make a budget and buy the physical hardware of the solution, and they will need to buy, house, and manage costly data centers.

On-premises or self-hosted analytics give businesses more internal control of their data security and privacy; they are not easily scalable. This means that many companies who choose to host their analytics infrastructure by themselves will usually pay for more hardware than they typically need. This is not a cost-effective way to run a business in the 21st century. On the other end of the spectrum, it is beneficial to companies due to the following reasons −

  • They can be scaled easily

  • They are offered in-service models

  • They come with huge cost savings

Analyzing large data sets with cloud solutions

Cloud solutions have enabled businesses to leverage innovative solutions without paying too much. Due to cloud-hosted solutions like data analytics, companies looking to generate value from large data sets can leverage this technology for more value and not pay excessively for it. This would be a different ball game if they were to host the facility themselves.

There are a lot of modern-day businesses that produce large data sets – in terabytes daily. Most of the data generated – retrieved from financial software, IT devices, social media, websites, and many systems – can be stored in the cloud.

Cloud Computing: The basis of analytics

Firstly, to understand the technique behind cloud analytics, it is essential to understand the basis of cloud computing. Cloud computing is a process whereby computer/digital services are delivered through the internet. Cloud is a word used to describe the many groups of computers that form the background of the internet infrastructure.

It is a solution that is hosted through the internet. Many cloud analytics solutions are provided by providers who have sophisticated data centers. These providers usually invest in first-rate solutions with the needed storage space and processing power for assessing large amounts of data.

It helps to collect and store data securely using cloud-hosted solutions. This way, the data can be accessed easily from any device by any authorized user. Also. It usually maintains the integrity of the data by performing some routine tasks. It does this by −

  • Clean up the data

  • Organize the data

  • Process the data

  • Analyze the data

All of these tasks are carried out by AI systems that may direct drivers and ensure their safety by the cloud analytics solution using proprietary algorithms. There are many vendor-specific algorithms that, as soon as the data analytics is completed, the solution usually uses algorithms to evaluate and present the data insights through clear visualizations and other presentable visual formats. When it comes to commercial solutions for it, users can expect to get varying features. But all cloud-hosted analytics solutions have common components. Some of these components that are common to solutions of it include −

  • Data storage and sharing

  • Analytic models

  • Computing power

  • Processing applications

  • Data models

  • Data sources

How Cloud Analytics Benefits Users?

Cloud analytics for businesses means a lot of benefits for subscribers. There are so many benefits of this solution that can significantly impact a business. They are −

Data consolidation − It combines data from different non-compatible sources to present them in a single format. Generated and featured in a single visual display format, it becomes immediately accessible to all users.

Security − Providers of cloud analytics solutions deploy robust data encryption technology for guaranteed protection whenever it is transmitted over systems. The essential security benefit is the offsite storage of data. A recent report showed that 34% of data breaches occurred due to insider threats. This includes current and past employees who share confidential data as they leave the organization.

Cost Reduction − It offers superior cost reduction since on-premise data analytics usually involves investing in different hardware systems. With on-premise solutions, there is a constant need for migrations and upgrades - which generally causes long periods of system downtime that affect business continuity. It does not require any investment in additional hardware. Also, you can leverage the in-house team's expertise from the service providers.

Scalability − It supports scalability as businesses can upgrade their subscription to include more features and support more in-house users. On-premise solutions mean you must buy and set up new system hardware to cater to any demand spike.

Collaboration and sharing − It can integrate all the data acquired from different parts of an organization. This leads to superior decision-making and accessible communication.


Cloud analytics is a new solution that allows businesses to scale and enhance efficiency without committing to an infrastructural investment. It helps businesses focus on their core operations compared to on-premise solutions. This is because the cloud service providers handle system maintenance and management. Furthermore, companies that opt for cloud-hosted solutions will enjoy all its benefits.