8 Advantages of Cloud-Based Data Analytics Platform (2024)

Even though it allows organizations to quickly manage massive data sets to improve overall business results, cloud-based data analytics platform advantages are vast, and they don’t end there.

Every Chief Technology Officer (CTO) knows how stressful on-premises analytic data systems can be, especially when the in-house IT crew isn’t available due to holidays, vacation, parental leave, etc.

Yep! It might sound strange, but when something happens with the servers, the CTO will feel as if the sky is falling down on his head, stress levels will spike through the roof, and everything will seem as it was crumbling down.

However, it’s possible to avoid all of this thanks to a simple and heavenly solution – the cloud!

This article will mention the most important advantages, but let’s first dig deeper into cloud-based analytics.

8 Advantages of Cloud-Based Data Analytics Platform (1)

What Is Cloud Analytics?

This term refers to the data analysis and manipulation within the cloud instead of on-premises systems. Fully integrated cloud-based data analytics systems provide users with access, analytics, aggregation, and data utilization. Moreover, users can locate areas that need improvement within the organization, but they can also identify various trends and work with massive data sets.

Suppose you need to analyze a vast amount of data points, counting thousands or even millions of data inputs. If that’s the case, you’ll have to utilize some kind of cloud analytics software to process this amount of information. You might think your data spreadsheet is sufficient, but on-premises data analytics will not be adequate with massive data input requests.

Cloud-based data analytics tools can help an organization process numerous data sets following affordable and scalable protocols, which is nearly impossible on-site. This is the most crucial reason why many companies need the power that the cloud data analytics can offer. Alternatively, they can outsource the entire cloud management.

Cloud-Based Data Analytics & Use Cases

Besides various advantages, there are endless use-cases like analyzing financial market data, website traffic, satellite data about climate changes and trends, factory production efficiency, understanding sensor-captured data, etc.

8 Advantages of Cloud-Based Data Analytics Platform (2)

Types of Cloud Analytics

As a broad category, cloud analytics refers to any or all analytical techniques utilized for data analysis. Now, users might have various requirements when it comes to their business needs and capabilities, and it all depends on the solution type. Therefore, we’ll mention all available solutions.

The four types:

Analytics in the Public Cloud– is a helpful analytics type that assists organizations when they have limited resources and are required to act fast. In addition, this type can work with cutting-edge technologies (machine learning, AI, serverless analytics), and it can handle a vast amount of data sets while being cost-effective at the same time.

Netflix’s specific approach is that they started on a private cloud but later moved to AWS public cloud. In contrast, Instagram began on the public cloud but later moved into Facebook’s private cloud. Dropbox also started in the public cloud but later moved to commodity servers.

Analytics in the Private Cloud– provides companies with a more secure way to analyze their data.
Many companies utilize the private cloud approach like Meta (Instagram, WhatsApp, Facebook), Target, and others.

Analytics in the Hybrid Cloud– it’s possible to store data on-premises and in the cloud simultaneously. In addition, it’s possible to analyze all this data with specific tools. On-demand analytics service allows you to combine private and public infrastructure that’s been used to deliver services. Moreover, remote software and hardware will help enable secure connectivity and information sharing with end-users.

Unlike companies that use public or private clouds, Walmart and Apple utilize the hybrid approach meaning they use both private and public clouds simultaneously.

Analytics in the Edge Cloud– will analyze data in real-time as soon as data arrives. This type of data analysis can make a split-second decision, which is very useful, especially when it comes to handheld devices or any other mobile devices, server systems, a sensor, etc.

Companies that utilize Edge cloud analytics include Dell Technologies, Nvidia, VMware, Telenor, and many others.

Cloud-Based Data Analytics Platform Advantages

When it comes to platform advantages of cloud-based data analytics, there is a lot to talk about, and we will point out some of the main ones you should consider:

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1. It’s Scalable

With cloud deployment, you can buy more compute resources and storage from cloud providers to meet demands. Hosting data analytics on-premises doesn’t allow you to upscale like this. Moreover, the on-premises solution has limited storage capacity, and in case you need to expand your IT infrastructure, these upgrades can be very costly.

2. Its Performance is Flexible

Cloud data analytics allows you to use services when you need them instead of buying new hardware every time your data requires a change. For example, you can scale up your services if data spikes occur and vice versa.

3. Unmatched Security

When it comes to data analytics on the cloud, the data is backed up to numerous servers in different locations. The diversity method provides greater protection in case of a natural disaster or anything else that might occur like a fire, etc.

As data isn’t stored locally, there’s no reason to worry about hard drive thefts. All sensitive information isn’t shared via insecure methods like flash drives or emails and is password-protected. All this means that users can access what they require, while audit logs will provide complete visibility into who’s accessing the data, when it was accessed, and what they did with the data they accessed.

4. It’s Reliable

Reliability is the essence of data analysis. Therefore, on-premises systems might be doing what they’re supposed to do for organizations that utilize fast reviews of qualitative data. But keep in mind that if you wish to ensure real-time validity at any time, you have to switch to the cloud.

On-premises systems will limit you to a vast pool of unnecessary IT resources. These redundant resources usually require configuration, or they are a simple waste. However, the cloud provides you with updates and apps that you can quickly move to any one of the available cloud servers.

5. Improved Data Accessibility

Your data analysis is web-based which means it allows the delivery of the insight to any device with an internet connection. Moreover, cloud deployment provides an increased collaboration between colleagues, and they can view and share the results throughout the cloud-based data analytics platform via self-service software.

6. Cost-Efficiency

Possibly the most significant cloud computing advantage is its cost-efficiency. It is estimated that small businesses can reduce their infrastructure expenses by a staggering 90%. If you wonder how this is possible, the answer is simple – cloud computing lets you pay only for the resources you use.

7. Get Unified Approach No Matter Where You Are

When all teams within your company (marketing, sales, IT, finance, and others) have to manage their databases with various analysis tools, you’ll have to train all your employees on how these different systems work. Not only it’s a huge waste of time, but it’s also a waste of resources.

When you pull the cloud analytics data from your organization’s ERP system, all your employees will have a single source of analytics and information, regardless of their physical location.

8. Lack of Maintenance Responsibilities

One of the most convenient cloud-based data analytics platform advantages is that you won’t be responsible for maintaining the servers, as vendors will do that for you. Alternatively, an on-premises platform requires you to maintain the servers, like checking if their environment is at optimum levels, monitoring, debugging, etc.

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Choosing the Best Cloud Analytics Platform

Even if your company has never used this data analytics method, you should know that it’s not as new as it may seem to be. It provides organizations with more ways to analyze the data, bringing up the overall value of your business.

You can make your choice by looking at some of these available options, but bear in mind that not all platforms are equally good:

NetSuite– is a unified business platform that offers integrated analytics and the possibility for in-depth reporting via the SuiteAnalytics module. It’s capable of driving insights by harnessing the entirety of information stored within the platform like HR, marketing, sales, orders & inventory, financials, and others. You won’t need to integrate the analytics platform to your ERP as SuiteAnalytics is built-in for NetSuite.

Cognos Analytics– is an AI-powered business cloud analytics tool coming from IBM’s kitchen. Thanks to self-service capabilities, it can help users make better decisions by drawing insights from data. Moreover, Cognos Analytics has a data preparation function that provides a built-in system recommendation to blend, shape, and clean data from different sources.

Qlik Sense– provides end-to-end data analytics. Qlik Sense isn’t restricted to predefined queries or pre-aggregated data like many query-based BI systems. It instantly renders insights, while its associative engine feature indexes for the majority of data relationships.

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Key Takeaways

As you can see, the advantages of a cloud-based data analytics platform are many, and if you didn’t migrate to the cloud already, you should consider doing it ASAP.

By doing so, you’ll enjoy many of its advantages like reliability, scalability, and incredible security levels. You’ll have easy access to your data from anywhere while not needing to maintain the servers all by yourself. In addition, it’s a much cheaper solution as you’ll have to pay only for the resources you use.

Besides migrating to the cloud and figuring out all of the cloud-based data analytics platform advantages, you’ll also need a reliable development partner. Our professional web or mobile development team can help you achieve grand things with cloud-based data analytics or anything else your business might need. All you have to do is send us an email with your query, and our team will get back to you immediately.

8 Advantages of Cloud-Based Data Analytics Platform (2024)

FAQs

8 Advantages of Cloud-Based Data Analytics Platform? ›

Cloud-based data analytics can be more cost-effective than on-premises solutions, since you don't need to invest in expensive on-premise hardware or software upfront. You also save on maintenance and support costs.

What is the advantage of moving data analytics to the clouds? ›

With an elastic scalability, cloud computing enables the Big Data and Data Analytics processes to access the resources they need to work efficiently. The cloud scale flexibility can be used to increase computing and processing capacity only when necessary, translating into reduced costs.

What is the advantage of data analytics platform? ›

One of the most substantial benefits of using an analytics platform is how easily reports can be pulled up using them. Many traditional BI tools can take hours before you're able to see any data. However, most analytics platform allows for reports and insights within a matter of seconds!

What are the three 3 major advantages of cloud computing? ›

The cloud delivers more flexibility and reliability, increased performance and efficiency, and helps to lower IT costs. It also improves innovation, allowing organizations to achieve faster time to market and incorporate AI and machine learning use cases into their strategies.

What are the four 4 primary benefits of using cloud services? ›

The Top 10 Benefits of Cloud Computing
  • Accessibility anywhere, with any device. ...
  • Ability to get rid of most or all hardware and software. ...
  • Centralized data security. ...
  • Higher performance and availability. ...
  • Quick application deployment. ...
  • Instant business insights. ...
  • Business continuity. ...
  • Price-performance and cost savings.

What are the advantages of a fully integrated cloud-based data analytics platform? ›

Advantages of a Fully Integrated Cloud-Based Data Analytics Platform. Data analytics platforms allow businesses to process and analyze data in real time. This means businesses can make informed decisions when new data becomes available, giving them a competitive edge in the market.

What is the advantage of cloud computing in big data analytics? ›

A cloud offers resources and services on demand. It means businesses don't have to build, own or maintain the infrastructure. The cloud thus enables easy and affordable access to big data technologies for companies of all sizes.

What are four significant advantages of using data analysis software? ›

Let's take a look at five of the benefits of using data analytics.
  • Personalize the customer experience. ...
  • Inform business decision-making. ...
  • Streamline operations. ...
  • Mitigate risk and handle setbacks. ...
  • Enhance security.

What is a cloud based data analytic environment? ›

Cloud analytics describes the application of analytic algorithms in the cloud against data in a private or public cloud to then deliver a result of interest. Cloud analytics involves deployment of scalable cloud computing with powerful analytic software to identify patterns in data and to extract new insights.

Which is the best platform for data analytics? ›

Top 10 Analytics Platforms
  • Microsoft Power BI Desktop.
  • Tableau.
  • Alteryx.
  • IBM Netezza Performance Server.
  • SAS Visual Analytics.
  • Qlik Sense.
  • SAP Analytics Cloud.
  • ThoughtSpot.

What are the 2 benefits of cloud computing? ›

Data security is one of the biggest advantages of cloud computing. Cloud offers many advanced features related to security and ensures that data is securely stored and handled.

What is a common advantage of cloud computing? ›

Cost savings: One of the greatest benefits of cloud computing is reduced costs. Since businesses do not need to build their own IT infrastructure or purchase hardware or equipment, it helps companies reduce capital expenses significantly.

What are the 3 common reasons to use the cloud? ›

Why use the cloud?
  • File storage: You can store all types of information in the cloud, including files and email. ...
  • File sharing: The cloud makes it easy to share files with several people at the same time. ...
  • Backing up data: You can also use the cloud to protect your files.

Which of the 7 benefits of cloud computing is the most important? ›

Anywhere, Anytime Accessibility Using Any Device

One of the topmost advantages of cloud computing is its ability to provide anytime, anywhere accessibility using any device for example, cloud data warehouse provides a way of storing and managing large amounts of data and lets you quickly access and use your data.

What is one of the biggest benefits of using a cloud based service? ›

Speed to market: Developing in the cloud enables users to get their applications to market quickly. Data security: Hardware failures do not result in data loss because of networked backups. Savings on equipment: Cloud computing uses remote resources, saving organizations the cost of servers and other equipment.

What are 3 benefits of using a cloud based service over an on premises service? ›

Why is cloud better than on-premise? Dubbed better than on-premise due to its flexibility, reliability and security, cloud removes the hassle of maintaining and updating systems, allowing you to invest your time, money and resources into fulfilling your core business strategies.

What are the key benefits of cloud based data protection? ›

What are the benefits of cloud data security?
  • Greater visibility. ...
  • Easy backups and recovery. ...
  • Cloud data compliance. ...
  • Data encryption. ...
  • Lower costs. ...
  • Advanced incident detection and response.

What are the benefits of cloud based AI? ›

A.I. enables extensive data management, and cloud computing maximizes information security, making it possible to deal with massive amounts of data in a programmed manner to analyze them properly, allowing the business to leverage information that has been "mined" and filtered to meet each need.

Which of the following is an advantage of cloud based database? ›

Using a cloud-based database service can offer many advantages, such as scalability, cost-efficiency, security, and convenience. You can easily adjust the size and performance of your database instance to meet your website's demand, without having to invest in hardware or software.

What are the three advantages provided by big data and analytics? ›

Organizations can use big data analytics systems and software to make data-driven decisions that can improve business-related outcomes. The benefits may include more effective marketing, new revenue opportunities, customer personalization and improved operational efficiency.

What are the advantages and disadvantages of data analytics? ›

Advantages include improved decision making, reduced costs, increased productivity and enhanced customer service. Disadvantages include cybersecurity risks, talent gaps and compliance complications.

What are top 4 data analysis techniques? ›

The four types of data analysis are: Descriptive Analysis. Diagnostic Analysis. Predictive Analysis. Prescriptive Analysis.

What is the difference between cloud analytics and data analytics? ›

Both are inter-related streams and have many topics in common. However, data science involves the analysis and extraction of useful insights from data, whereas cloud computing includes the delivery of data and associated analytics, resources, and infrastructure across multiple locations.

What is an example of cloud analytics? ›

The best cloud analytics platforms can manage hybrid data delivery and application automation. Examples of data sources include transactional, website usage, social media, and CRM data. Data is stored in a cloud data warehouse from a vendor such as Amazon Redshift, Google BigQuery, Microsoft Azure, or Snowflake.

Is cloud computing good for data analytics? ›

Cloud computing does not rely on data analytics in any way. Clouds have numerous advantages that make them the best choice for any organization, large or small. There are many advantages of using cloud computing in organizations.

Which cloud provider is best for data analytics? ›

Google Cloud is one of the best data science learning platforms. It offers all of the tools data scientists need to unlock value from data. From data engineering to ML engineering, TensorFlow to PyTorch, GPUs to TPUs, data science on Google Cloud helps your business run faster, smarter, and at planet scale.

Which cloud platform supports data and analytics? ›

Google Cloud offers all of the tools data scientists need to unlock value from data.

What are the four essential V's for a big data analytics platform? ›

Big data is often differentiated by the four V's: velocity, veracity, volume and variety.

What are the pros and cons of cloud computing? ›

A list of advantages and disadvantages of cloud computing:
Advantages of CloudDisadvantages of Cloud
Optimized investments in hardware and softwareDowntime
No administrative or management stressLimited control of infrastructure
Easy accessibilityRestricted or limited flexibility
Pay-per-useOngoing costs
7 more rows
Jul 8, 2016

What are two pros and cons of cloud computing? ›

Pros and Cons of Cloud Storage Back
  • Advantage #1: Disaster Recovery (DR) ...
  • Advantage #2: Access your data anywhere. ...
  • Advantage #3: Low cost. ...
  • Advantage #4: Scalability. ...
  • Advantage #5: Security. ...
  • Disadvantage #1: Lack of total control. ...
  • Disadvantage #2: Difficult to migrate. ...
  • Disadvantage #3: Requires Internet.

What are the two 2 essential characteristics of cloud computing? ›

The National Institute of Standards Technology (NIST) lists five essential characteristics of cloud computing: on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service.

What is unique about cloud computing? ›

Cloud Computing is just that, computing in the cloud!

Cloud Computing simply refers to the use of the internet to store data on remote servers. Instead of traditional storage of data locally on your hard disks or flash drives, you now store data on the cloud.

What are the cost benefits of cloud computing? ›

Cloud computing is cost-effective because costs usually directed at purchasing hardware and software are immediately eliminated. Operational, maintenance and upgrade costs are all expenses that disappear. The IT staff that does setup and maintenance is eliminated too.

What are the 3 key concepts in cloud computing? ›

Cloud solutions come in three primary service models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

Which items are part of the 6 advantages of cloud computing? ›

6 benefits of cloud computing
  • Costs. Cloud computing can help a company reduce costs and increase profits by eliminating the expenses of running an independent IT infrastructure. ...
  • Speed. ...
  • Performance. ...
  • Scalability. ...
  • Analysis. ...
  • Security. ...
  • Public clouds. ...
  • Private clouds.
Sep 30, 2022

Which of the following are some of the six advantages of cloud computing? ›

These benefits include:
  • Trade capital expense for the variable cost.
  • Benefit from massive economies of scale.
  • Stop guessing about capacity.
  • Increase speed and agility.
  • Stop spending money running and maintaining data centers.
  • Go global in minutes.
Dec 28, 2022

What are the 5 benefits of cloud computing PDF? ›

Cost saving, scalability, mobile storage, anytime anywhere access, better security, energy saving, environment benefits are some of benefits of the cloud computing. There is shift from traditional computing to the cloud computing and organizations and individuals are benefiting from it.

What are the advantages and disadvantages of cloud vs on-premise? ›

The Differences Between On-Premise and Clouds
On PremisesOn Cloud
Users have more control.A third party is involved, reducing the user's control.
It is difficult to scale infrastructure.The infrastructure is easily scalable.
Internet connectivity is not always necessary.Cloud services require Internet access.
7 more rows

What are best advantages of cloud computing on premises? ›

What are The Benefits of Using Cloud Solutions Over On-Premise Computing?
  • It Lowers Costs, Saving Money. ...
  • It is More Secure. ...
  • It Lowers the Risk of Losing Data. ...
  • It's Easy to Access Data Anytime. ...
  • It's Easier to Adjust. ...
  • It is Easier to Keep You System Up to Date. ...
  • Can Be Used on Any Platform or OS.
Nov 16, 2020

What is the main advantage of moving to cloud? ›

Moving to the cloud is a good investment for businesses. All the data and resources are kept in one place and only the organization can have the access to them, this will not only save money but it will also save time. Moving to the cloud will also minimize the cost of hardware for IT infrastructure.

What are the advantages of moving to cloud computing? ›

One of the many benefits of moving to the cloud is actually improved security. Cloud providers ensure that they maintain the strictest security practices for their customers. From sophisticated digital safeguards to high-tech physical ones, cloud providers make cybersecurity a top priority.

What are the benefits of migrating to the cloud? ›

Cloud migration benefits
  • Optimised costs. ...
  • Flexibility and scalability. ...
  • Enhanced security. ...
  • Compliance. ...
  • Backup, recovery and failover. ...
  • Simplified management and monitoring.

What is one advantage to using the cloud for data storage? ›

Using the cloud for storage gives you access to your files from anywhere that has an internet connection. In the event of a hard drive failure or other hardware malfunction, you can access your files on the cloud. It acts as a backup solution for your local storage on physical drives.

What are the advantages and disadvantages of the cloud? ›

Pros and Cons of Cloud Storage Back
  • Advantage #1: Disaster Recovery (DR) ...
  • Advantage #2: Access your data anywhere. ...
  • Advantage #3: Low cost. ...
  • Advantage #4: Scalability. ...
  • Advantage #5: Security. ...
  • Disadvantage #1: Lack of total control. ...
  • Disadvantage #2: Difficult to migrate. ...
  • Disadvantage #3: Requires Internet.

What are the 4 phases of cloud migration? ›

Phase 1: Prepare. Phase 2: Plan. Phase 3: Migrate. Phase 4: Operate and optimize.

What are the challenges in cloud computing? ›

Top 14 Challenges of Cloud Computing
  • Security.
  • Password Security.
  • Cost Management.
  • Lack of expertise.
  • Internet Connectivity.
  • Control or Governance.
  • Compliance.
  • Multiple Cloud Management.

What are two benefits of using a cloud database? ›

Advantages of cloud databases
  • Reduced operational overhead. Cloud databases eliminate the management and maintenance of any physical infrastructure. ...
  • Improved agility and scalability. ...
  • Lower total cost of ownership (TCO) ...
  • Flexible database options. ...
  • Safe, secure data. ...
  • Better reliability.

Why is cloud data important? ›

Cloud computing compliance and security ensure user and data authentication with access control and privacy protection. Many organizations are inclined toward using a private cloud database. Cloud computing ensures the privacy of the data, and that is also why security is important in cloud computing.

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