Why Moving Analytics to the Cloud Is Hard (But Necessary)

  • Posted by: Recode

According to Fortune Business Insights, the cloud-based analytics market is expected to reach $86.15 billion by 2028 at a CAGR of 20.9%. Indeed, cloud-based analytics is becoming the go-to solution for organizations. And that bodes well when we consider that cloud-based analytics provides employees access to data processing and analysis from anywhere in the world. However, this fast development in the analytics space is not without its challenges. 

That said, in this article, we will explore the difficulties and benefits of moving analytics to the cloud, as well as the solutions available.

Analytics on Cloud Has Been a Revolution in the Making

Cloud-based analytics has been a game-changer in the industry, transforming how businesses collect, manage and analyze data. Prominent cloud computing platforms like AWS, Microsoft Azure, and GCP provide tools for data analytics in the cloud.

As it stands, the cloud has allowed businesses to focus on the big picture and create data-driven strategies. For example, Salesforce Analytics Cloud (formerly Wave Analytics) provides a cloud-based platform for data-driven businesses. It allows users to quickly build visualizations and dashboards and perform data processing for their company’s unique needs.

Another advantage of cloud analytics is that it enables businesses to quickly adapt to changing market conditions. For example, during the COVID-19 pandemic, many businesses had to quickly shift their operations online. Cloud analytics allowed these businesses to quickly analyze data from their online operations and make informed decisions to adapt their strategies.

Cloud analytics has also made it easier for businesses to implement machine learning (ML) and artificial intelligence (AI) into their operations. In fact, McKinsey outlined in a paper from 2016 that there is a possibility of achieving 80% automation in work activities by integrating ML with analytics. 

Overall, cloud analytics has helped businesses to become more data-driven. Let’s explore its benefits more profoundly.

The Many Benefits of Moving Analytics to the Cloud

Cloud-based analytics is attractive for a number of reasons. Let’s dive deeper into each of these benefits:

Reduced Infrastructure Costs

In a survey by Alteryx, industry leaders were asked about their investments in cloud-based analytics. About 89% agreed that cloud analytics had boosted their profitability.

By moving analytics to the cloud, businesses can alleviate the need for costly hardware and software investments, as well as the associated maintenance costs. This can free up resources that can be used to develop more innovative products and solutions.

Improved Accessibility & Scalability

Cloud-based analytics tools offer increased accessibility through the internet. For example, an e-commerce company may collect data from its online customers and analyze purchase patterns in order to improve its services.

Besides, as businesses grow and their data analysis requirements increase, they can easily scale up computing resources on the cloud to meet those demands. This means that businesses can enjoy an analytics solution that is both powerful and cost-effective.

study by Grand View Research predicts that the growth of the cloud analytics market will be driven by the increasing demand for data connectivity in cloud environments and the transition of businesses to digital platforms.

Data Security

By moving data to the cloud, businesses can take advantage of advanced security features, including encryption and access controls, to protect sensitive information. Additionally, cloud providers can help businesses comply with regulatory requirements, such as GDPR or HIPAA, by providing tools and services to manage data privacy and security.

As more and more businesses adopt cloud-based analytics solutions, it is clear that the benefits of doing so are significant and can help businesses stay competitive in an increasingly data-driven world.

But, Why Is It Hard to Move Analytics to the Cloud?

Moving analytics to the cloud can be challenging for businesses despite its many benefits. Often, the adoption is hindered by an organization’s stringent resource investment pattern and the concern about losing control. When it comes to the technical nuances, here are some of the challenges that organizations face:


Data Migration

Migrating data from on-premises systems to the cloud can be a complicated process — one requiring careful planning to ensure the integrity and accuracy of the data. As per a research paper by the Cloud Security Alliance, approximately 33% of cloud migrations are unsuccessful, and only 25% of businesses adhere to their migration timelines. This causes a lot of frustration among IT managers. It also requires multiple versions of the same data, which can lead to inconsistency and errors.



Cloud analytics solutions often need to be integrated with existing systems, such as data warehouses, which can be difficult and time-consuming. It further adds an extra layer of complexity to the analytics process.


The integration of cloud-based analytics is complex because of the multiple data silos in most organizations and the lack of appropriate data management skills in-house. Dispersed data sources and different data formats only add to the problem.


Skills Gap

According to a McKinsey survey, 43% of the respondents believed that the data analytics space faces the largest skills gap.


Transitioning to cloud analytics can come with a learning curve for some employees, as they will need to acquire new skills to work with cloud-based tools effectively. Another common issue is finding skilled professionals to address these challenges, whether it be hiring new talent or retraining existing employees.


Vendor Lock-in

While vendor lock-in isn’t necessarily a challenge in the current context, it’s important to note that businesses may need to rely on specific vendors to provide cloud analytics solutions. Because of this, businesses are less likely to change vendors, which can negatively affect their ability to incorporate new features and technologies into their analytics solutions.


These are the challenges that businesses need to overcome when considering a move to cloud analytics.

How Can We Help?

Moving analytics to the cloud presents numerous benefits for businesses, but it is not without its challenges. These difficulties require careful planning and execution, but with an expert partner’s help, businesses can overcome them and reap the rewards of cloud-based analytics.

At Recode Solutions, we possess expertise in various aspects of cloud analytics, which enables us to provide unparalleled assistance to businesses. More profoundly, we:

  • Thoroughly comprehend the intricacies involved in data migration to the cloud, which allows us to help businesses meticulously plan and execute successful data transfers. 

  • Integrate cloud analytics solutions with existing systems.

  • Offer valuable insights on selecting the most suitable tools for the task at hand.

  • Offer comprehensive training and support to ensure that teams can effectively utilize new cloud analytics tools.

Interested in learning more? Connect with our experts here.

Author: Recode

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