The transformation that has taken place in retail in recent years has been influenced by e-commerce, social networks and the latest technologies. Today's shoppers expect an interactive, connected consumer experience from start to finish. In addition, market competition and the need to survive made retailers seek the application of new technologies, such as cloud computing.

The use of analytical tools is one example of how retailers can use data analysis to identify individual customer preferences and behaviors, offer new shopping experiences and create loyalty. Cloud computing offers retailers great potential for change.

Advantages of Cloud Computing for the Retail Industry

You may remember that in the old days of technology deployment, IT departments worked with business teams to select solutions for specific requirements: point of sale, merchandising, planning, purchasing, supply chain, and customer management.

In the end, vendor teams worked with business and IT to evaluate solutions over a period of time. Then came the approval cycle. Implementation was done by systems integrators. A not so distant past, isn't it? For some, still a reality.

For this scenario, practice shows that the need for scaling components such as CPU, memory, disk space and several other parameters, due to the growth in the number of users, transactions and data volume, demands a complex acquisition process with deadlines extensive.

One of the main advances generated by cloud computing is to transform this whole reality into an agile and strategic process. Retailers can pay for new computing power that includes storage and software licenses, on a subscription basis or on a pay-as-you-go basis. This has huge advantages.

Retail businesses are characterized by periods of normal activity interspersed with peaks of high demand during weekends, holidays, holidays and promotional campaigns. Designing an IT infrastructure to accommodate high demand would mean underutilizing IT capacity for long periods. In the cloud computing model, it is possible to design IT capacity for a base load and provide additional resources at peak times.

For the retail market, cloud computing also provides benefits related to the new scenario.

  • Retailers can outsource IT infrastructure management and retain critical applications for in-house staff
  • Since retailers are very concerned about delivering an excellent customer experience, it is possible to create strict service level agreements with cloud providers.
  • There is also a big financial advantage of cloud computing. Retail companies can transfer computational expenses to operating expenses. Computing resources, including software, hardware and maintenance, are moved to the cloud with the responsibility of cloud providers, such as AWS.

Direct benefits for retailers utilizing the cloud include in-store task management, speed to market and real-time reporting. Cloud computing also allows retail companies to obtain valuable information about their customers' buying behaviors and preferences, thanks to the data generated. Retailers can customize offers and communication, and get the information they need to create a personalized experience.

Migrating complex systems to the cloud went from being a project that took months to something done in hours. Get in touch with Sky.One and find out how you can start your cloud journey.

Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.