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One of the most notable technology trends of the past few years continues to be the growth of cloud-based business services. Organizations of all sizes increasingly leverage a variety of options for accessing applications, server platforms, and even data analytics from companies specializing in these offerings. This allows the firm to leverage the benefits of the cloud applications without incurring the costs of running their own data center.

There are also other significant benefits derived from using cloud-based services. Let’s take a look at the reasons why IT firms are putting their data analytics in the cloud.

The Trend Towards Data Analytics as a Service (DAaaS)

A recent study by IDG reveals 15 percent of the respondents have already implemented a cloud-based data analytics solution. While that amount isn’t impressive, the same survey noted 68 percent are currently planning to investigate or deploy cloud-based analytics over the next year. There’s no doubting this is an important trend in the industry, but why?

Data Analytics Requires Massive Amounts of Computing Power

Performing data analytics takes a lot of processing power. It is simply more cost effective to use a cloud-based service for this task, instead of companies making the investment in their own servers, especially when you consider the add-on costs of applications, network engineers, and facilities maintenance. Companies are able to achieve a notable ROI at a faster pace when compared to building their own analytics solution from the ground up.

The managing director for Accenture Analytics, Vince Dell’Anno, noted other reasons for the increased adoption rate of data analytics. Enterprises are migrating their data analytics role to the Cloud to enhance overall business agility as well as improve the rate of innovation. Dell’Anno notes that using cloud-based data analytics provides a “faster route to insight-driven decision-making and business outcomes.”

Businesses Are Saving Money in the Cloud While Making it Easier for End-Users

The IDG survey reported 60 percent of enterprises with cloud-based data analytics solutions in place noted the lower costs compared to an on-premise solution. Another major advantage of cloud-based analytics is the relative ease of use of the applications by nontechnical users. This was noted by over half of the survey respondents already using cloud analytics.

Some firms are leveraging hybrid solutions, combining off-site analytics solutions along with their own on-premise applications. As more companies see the advantage of the cloud, expect this trend to continue.

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