The ability to collect, process, and analyze big data volumes is important for businesses trying to overtake competitors in this data-driven world. This is behind the take-off of cloud analytics. Essentially, cloud analytics enables organizations to leverage the power of the cloud for handling volumes of their needs for data and analytics.
Let’s look at the rise of cloud analytics and the underlying technologies that made it possible to build. Further, we will discuss the specific components of data analytics stored in clouds, processed, and visualized. We will also outline the main trends shaping the future of cloud analytics and project what we might see in the next 12 months and beyond.
This article will help you gain more insight, whether you are a business leader who has a great interest in the benefits of cloud analytics, a data analyst with curiosity for the latest technologies and trends, or an IT professional responsible for the deployment of cloud-based data analytics solutions.
The Growth of Cloud Analytics
Market Size and Growth
According to Grand View Research, the global cloud analytics market will grow enormously from $22.07 billion in 2021 at a CAGR of 22.32% from 2022 to 2030. This growth only attests to the prominence and adoption rate of cloud analytics solutions across various industries.
Growth Drivers
The key drivers of growth for cloud analytics are digital changes that businesses are continuing to undergo and a heightened need for the connectivity of data across cloud environments. Indeed, 63% of enterprises in digital transformation cited this as the number one reason to adopt public cloud computing. Meanwhile, security is paramount, as 66% of IT pros say security is the top issue when devising a business cloud computing strategy.
Industry Focus
The BFSI sector contributed over 35% to the total revenue in 2022 and has the highest adoption rate in the industry. This large market share can be attributed to the growing competition faced by businesses in this sector, where they look forward to cloud analytics to enhance user experiences, improve customer acquisition and engagement strategies, and bring refinement to targeting techniques.
Application Trends
In the application segment, sales and marketing applications captured almost 38% of the revenue share in 2022. The growth in this segment is attributed to new trends, such as text analytics and social analytics, and increasing demand for insights to drive more efficient business planning and decision-making processes.
Technologies in Cloud-Based Data Analytics
Big Data Processing Frameworks
The day-to-day explosion of data has served as the trigger to give way to powerful big data processing frameworks. Apache Hadoop, Apache Spark, Samza, and Flink form part of this league, driving organizations to process huge structured and unstructured data in real time. These frameworks facilitate parallel processing for enhanced speed and efficiency while handling large data sets.
AI and ML
AI and ML are huge drivers of innovation in cloud-based data analytics, where organizations can elicit meaningful insights from any complex dataset. Google Cloud AI, Azure ML, Dataiku, and AWS SageMaker provide strong environments for the building, training, and deployment of AI and ML models.
Cloud Data Warehouses and Lakes
At the center of every cloud-based data analytics solution is usually a cloud data warehouse and a data lake. While a cloud data warehouse, such as Google BigQuery or Amazon Redshift, is designed for processing structured data, the data lake provides storage for a much more extensive variety of raw data types, such as AWS Lake Formation or Snowflake.
Data Integration and ETL Tools
Effective data analytics is based on the possibility of the smooth integration and transformation of data from different sources. Tools for data integration and ETL, such as Apache Airflow, Stitch, IBM DataStage, and AWS Glue, make this process easier and hence help organizations bring together data from a multitude of platforms.
Data Visualization and Business Intelligence (BI)
The final piece in the cloud-based data analytics puzzle is data visualization and BI tools. These tools, like Tableau, Microsoft Power BI, Qlik Sense, or Zoho Analytics, allow organizations to represent their data in exciting ways and understand it more profoundly.
Cloud Analytics Trends in 2024
Massive Growth in Cloud Spending
The quantum of growth for cloud infrastructure services becomes a big growth story. Global spending hit $78 billion in Q2 2024, a 19% year-over-year increase. Key drivers include an increased enterprise IT budget, allocated in large blocks to AI-related investments. The power of the top cloud provider triumvirate of AWS, Microsoft Azure, and Google Cloud is 63% of all spending at a 24% growth. In addition, Gartner projects that worldwide end-user spending on public cloud services will grow by 20.4% to $675.4 billion in 2024 from $561 billion in 2023. This reflects a market that is strong and growing rapidly.
Low-Code and No-Code Cloud Services
Second is the accelerated adoption of low-code and no-code (LCNC) technology. Altogether, Gartner forecasts that by 2025, new enterprise apps using these platforms will hit 70%, as compared to >25% in 2020. And the impetus behind these gains is compelling:
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Low-code and no-code platforms can cut app development time by up to 90%.
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No-code solutions use 70% fewer resources than traditional methods.
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Companies using low-code for customer-facing apps report an average revenue boost of 58%. (Kissflow)
This democratization of app development allows organizations to empower non-technical users, enabling faster innovation and a more agile response to market demands.
Edge Environments Take Center Stage
Edge computing is gaining momentum as more and more organizations realize the need for processing data closer to where it is generated. According to Gartner, about 10% of enterprise-generated data was created and processed outside a traditional centralized data center or cloud in 2018. It is forecasted to grow at quite an exponential rate to as much as 75% in 2025.
One noteworthy element in this trend in action is edge servers, particularly in 5G mobile networks, promising near-zero latency—1 millisecond, or 1/1000th of a second—ready to shatter the industries that rely on real-time data processing, such as autonomous vehicles, healthcare, and smart cities.
Hybrid and Multi-Cloud Adoption
The future of cloud computing is decidedly multi-dimensional, documented in the Flexera 2023 State of the Cloud Report. Among many other salient findings are the facts that:
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87% of Respondents Have a Multi-Cloud Strategy: This approach helps organizations avoid vendor lock-in and enables them to use the best features from several cloud providers in a more strategic fashion.
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72% Favor a Hybrid-Cloud Model: In this model, there are various advantages for businesses that combine public and private clouds.
This trajectory indicates that businesses are increasingly looking to diversify their cloud infrastructure for added resilience and performance, but also for workload demand sensitivity and data sensitivity requirements.
Keeping the Cloud Sustainable
Recent estimates from The Shift Project have figured out that cloud computing contributes to global carbon emissions by 2.5%-3.7%, which may be compared to the aviation industry’s 2.5%. Many are therefore giving attention to how best to cut the environmental impacts of cloud services. Gartner approximates that by 2025, carbon emission would have formed one of the “top three” criteria that users would use in choosing a cloud service provider. This trend is forcing cloud providers to invest in green technologies and energy-efficient data centers that put cloud services on the global agenda for sustainability.
Conclusion
Cloud analytics is fast changing, and this change is itself fuelled by increased cloud spend, low-code solutions, edge computing, and multi-cloud strategies—in fact, with sustainability now suddenly very much in focus. Such trends are shifting how businesses may take advantage of their data, opening innovation and competitive advantage opportunities. In 2024, it will be those who have successfully harnessed such developments that will be better placed to succeed within an increasingly data-driven world.
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