Cloud-based data analytics has become an increasingly popular option for organizations looking to store, process, and analyze large volumes of data. According to a Flexera report, 84% of organizations are using the cloud for data analytics. Also, in a study conducted by the research firm IDC, it was estimated that the global cloud analytics market size will reach $73.76 billion by this year (2023), growing at a compound annual growth rate of 17.9% from 2018 to 2023. These statistics show a strong trend towards the adoption of cloud-based data analytics, driven by the increasing need for organizations to quickly and efficiently analyze large amounts of data. This is because the cloud provides a number of benefits that traditional, on-premise data analytics solutions cannot match. One of the key advantages of cloud-based data analytics is scalability; organizations can store and process vast amounts of data without having to worry about the limitations of their hardware or infrastructure. Providing virtually unlimited computing resources, cloud environments can be easily scaled up or down as needed. As a result, organizations can handle spikes in data volume without having to worry about running out of storage or processing power.
Another major advantage of cloud-based data analytics is accessibility. With cloud-based data analytics, organizations can access their data from anywhere with an internet connection, making it easier for teams to collaborate and work on projects together, regardless of their location. Additionally, it also means that organizations can get insights from their data more quickly since they don’t have to wait for data to be transferred from on-premise systems to a centralized location.
Cost savings are inherently incurred using cloud-based data analytic platforms; organizations can avoid the upfront costs associated with buying and maintaining on-premise hardware and software. A survey by Gartner found that cloud data warehousing was the second-fastest growing segment of the cloud market in 2021, with a growth of 63.8%. Instead, they can pay for the resources they need on a pay-as-you-go basis, which can be more cost-effective, especially for organizations that don’t have large amounts of data to process. Additionally, cloud-based data analytics providers typically handle the maintenance and upgrades of the infrastructure and software, so organizations don’t have to worry about these tasks themselves.
Although there are many benefits gained from using these cloud-based platforms, one of the concerns that organizations may have when it comes to cloud-based data analytics is security and threat ever surmounting threats against the confidentiality, integrity, and availability of data. Risk factors are subject to cloud systems’ reliance on APIs to interact with other systems, and if these APIs are not properly secured, they can be exploited by attackers. According to a 2022 report from Gartner, APIs are quickly becoming the leading attack vector for enterprise web applications. However, cloud-based data analytics providers typically offer robust security features, such as encryption and multi-factor authentication, to protect sensitive data. This can provide organizations with peace of mind, knowing that their data is protected against unauthorized access or breaches. Additionally, cloud-based data analytics providers often have security teams in place to monitor and respond to security incidents, which can help to ensure that organizations’ data is always protected.
Lastly, cloud-based data analytics platforms can be easily integrated with other cloud-based tools, such as marketing automation software or customer relationship management systems. This integration can provide organizations with a comprehensive view of their data, which can be used to make informed business decisions. Additionally, since the data is stored in the cloud, organizations can leverage cloud-based analytics tools, such as machine learning and artificial intelligence, to gain deeper insights from their data.
Cloud-based data analytics provides organizations with a flexible, scalable, and cost-effective solution for storing, processing, and analyzing large volumes of data. With the ability to access data from anywhere with an internet connection, collaborate more effectively, and gain deeper insights from their data, cloud-based data analytics is an excellent option for organizations looking to stay ahead of the competition.
