All businesses use and produce data—cloud-based software can help to keep your data organized and secure. Beyond simply storing your data, you can also make use of cloud analytics services to identify data patterns and provide suggestions for operational improvement.
This guide will explain what cloud analytics is and how it works. We’ll also explore the key benefits of cloud analytics and provide tips for choosing the best platform for your business.
The term data analytics refers to the process of collecting, processing, and examining data to draw useful conclusions. The insights gained from analyzing data can help businesses make more considered strategic decisions.
Traditional data analytics uses on-premises infrastructure, while cloud-based analytics uses remote servers. Cloud analytics has become increasingly popular in recent years because it typically offers greater scalability and lower upfront costs.
There are a number of different models which offer cloud analytics solutions. Here, we’ll explore some of the various types of cloud analytics platforms:
Public clouds are offered by third-party providers, using the public internet. This type uses a standard cloud computing model. Here are some well-known cloud computing providers that offer analytics capabilities:
Public cloud platforms are used by many businesses because they can handle large volumes of data without investing in costly on-premises infrastructure. Public cloud solutions also offer access to advanced tools like real-time analytics, AI, and machine learning.
Private cloud computing systems are only available inside a private network, meaning they’re not shared with any other organization. The way that they operate is similar to an intranet, which is an internal network used by organizations to securely share information and resources.
A private cloud analytics platform operates within a dedicated cloud environment reserved for a single company. It has certain advantages compared with public cloud systems, offering enhanced security and customization. It’s especially valuable for organizations with strict regulatory requirements or those handling confidential information. However, it can be more costly to set up and maintain.
Hybrid cloud setups combine private and public cloud platforms. This allows businesses to leverage the strengths of each—allowing for greater flexibility. Sensitive or mission-critical data can be stored and analyzed in a secure private cloud, while less sensitive data can be processed in the public cloud. These types of cloud arrangements are generally connected using a unified management tool.
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In essence, cloud analytics works by taking information from large databases and transforming it into summaries that business leaders can easily interpret. In the past, this kind of data analysis would have required a supercomputer, however these days technology has advanced to the point where massive amounts of data can be quickly converted into useful insights.
Data analysis results are often presented as charts or visualizations, which is particularly useful if you’re working collaboratively with clients, or you need to communicate the findings to other members of your organization.
Using cloud-based platforms means businesses don’t need to invest in their own data centers. Instead, they can send their data via the cloud to the provider’s infrastructure to be stored, processed, and analyzed. Public cloud providers have made data analytics a lot more affordable and accessible, so now even small businesses can afford to take advantage of these cutting-edge services.
There are numerous benefits of cloud analytics for businesses. In this section, we’ll explore the key advantages of using a cloud-based analytics solution:
Using a cloud provider to handle your analytics needs is far more cost effective compared with doing it in-house. Most cloud services allow you to scale up or down depending on the fluctuating needs of your business, so you only pay for what you need. If you were relying on your own IT infrastructure and your business suddenly experienced a surge in growth, you’d need to quickly expand your system—but when you’re using a cloud service, all you need to do is adjust your subscription.
Cloud analytics can give your business instant access to real-time data, enabling faster decision-making. Rather than relying on outdated reports, your teams can tap into live dashboards and analytics tools that reflect the current state of operations. This allows for quicker identification of trends, anomalies, or opportunities—whether it’s adjusting supply chain operations, reallocating resources, or responding to customer behavior in real time.
Cloud technology offers a range of advantages from a data security perspective. Because your business isn’t storing its data onsite, there’s no risk of physical theft. Additionally, it reduces the risk of confidential information going missing via external hard drives or USB devices. When your data will be password protected, and your employees only have access to what they need to do their job, there’s less chance of having your security compromised.
Cloud platforms can also make it easier for organizations to stay legally compliant and up-to-date with state legislation.
One of the standout advantages of cloud analytics is the ease and efficiency of data sharing. Traditional methods—like emailing spreadsheets or juggling multiple versions of the same file—are prone to error and confusion. In contrast, cloud-based platforms allow teams to access and collaborate on a single, centralized source of truth, eliminating version control issues.
With just a few clicks, reports and dashboards can be securely shared with team members or external stakeholders. This streamlined sharing capability fosters a more connected workplace culture.
Here are some tips for selecting a cloud analytics solution that suits your business:
If you need help running the financial side of your business, QuickBooks Online is a streamlined system that offers a number of cloud analytics tools. Discover how our cloud accounting software can provide you with real-time financial insights via dashboards and reports—helping to keep your business on track.
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