How cloud computing is transforming the retail sector

Cloud computing is usually known for sharing the information and managing all operations with the help of the internet.

Sometimes managing, storing and analyzing all data gets very exhaustive and as we all know the retail industry is expanding beyond traditional ERP, CRM and supply chain management systems. To keep thriving in this highly competitive industry, every retailer is extending their reach to customers by managing multiple stores and supply chains, giving unique customer experience. Integrating cloud computing in retail is the best choice businesses are making to streamline these processes better. Cloud adoption reduces IT cost, simplified workflows and improves efficiency and end-user experience.

“90% of retail organizations will be using cloud services by the end of 2022” – Gartner Forecast

A cloud service helps the industry in many ways. Mostly the help in reducing the infrastructure, storage, and computing cost to enable real-time access to data. It also helps in transforming the retail sector in many ways.

Benefits of adopting cloud computing in Retail

The buying habits of customers are constantly changing and businesses are having a hard time making predictions of how the retail industry will fare in the next few years. But to beat the competition, businesses have to constantly innovate and ensure accuracy and coordination. Businesses are realizing many benefits of adopting cloud computing in retail.

Cost effective operations

Retail industry is the fastest changing industry and cloud computing is considered as the preferred solution due to its cost effectiveness because retailers only pay for what they use. Businesses also save a significant amount of money on operational expenditure budgets such as software, hardware and connectivity. They don’t have to manage or purchase a whole system and this reduces man power as well.

Business demands are changing at a faster pace, cloud computing helps retailers to eliminate time spent on planning, budget approval for capital expenditure, development, and other operational aspects.

Flexibility and scalability

The cloud based model offers cost flexibility to the retailers allowing them to increase or decrease their computing usage with varied pricing options.
The retail sector usually depends on promotions, past trends and weather and cloud computing helps retailers handle the inevitable scenarios. A cloud based model enables retailers to scale them up in a more cost effective way.

Catalyst to create new products

Retail’s future is always unpredictable and as mentioned earlier the buying habits of consumers are always changing. Advanced data analytics capabilities of cloud allow merchants to create new products on the basis of customer feedback. Making use of valuable insights derived from reviews, retailers can create new products that are in alignment with current trends and customers’ needs.

Refining customer experience:

On premise data usually do not use customer and sales data to its full capacity but cloud service provides high-power computing resources and statistical models to analyze the buying behavior of customers. Retailers can use this data by understanding the buying behavior, trends, and interactions with the brand, which will let them customize their business model for the better.

With data, merchants can understand all about seasonal spikes, product bundling, if their way of portraying the products is right or wrong and also get to analyze the preferred shipping methods. This way, every merchant can pivot the business model to generate better revenue. It also enables the merchant to know where most customers have dropped out and what they dislike while going through the store. Thus the seller can optimize the store at ease with this valuable data.


As you can already see, cloud computing is an essential part of every business and it has gained attention in the retail industry as well. Cloud computing only makes things easier and better for retailers. It has become a necessity now.

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