Data is one of the biggest drivers for cloud businesses. You can collect and use data on almost anything to improve your business, from clients’ social media preferences to specific buying times for certain demographics. It’s important that your organization pivots to a cloud data architecture approach to get the most out of this nearly endless supply of data and insights.
In this article, we’ll look at what cloud data architecture is and how you can use it to make better decisions for your business.
What is Cloud Data Architecture?
Data architecture is the governance of your organization’s data. This includes the guidelines, rules, and procedures to collect, store, and use data within your organization. Cloud data architecture is the use of cloud technologies, processes, and governance practices to process emerging data sources, like big data. Using data architecture allows your business to be efficient, proactive, and accurate when collecting, storing, or using data.
Traditional vs. Cloud Data Architecture
Why is it so important for businesses to move to cloud architecture? Most traditional data architecture systems simply can’t handle the volume, complexity, and speed of cloud data. Traditional data architecture generally involves an on-site data storage and analytics system. These systems often require specialized IT knowledge to maintain. When a team member needs something related to data, most traditional systems require an IT member to access the data and generate a report for the other team member. Depending on current capacity and time sensitivity, this process could take a few hours to weeks at a time.
Cloud architecture processes remove almost all of the limitations of traditional data architecture. Unlike traditional systems, cloud data systems are generally cloud-based and have customized access for each user. That means no on-premise warehouses for the IT team to maintain. It also means users can access the data they need and create reports without involving the IT team, cutting out a time-consuming step in data analysis.
Benefits of Cloud Data Architecture
Moving from traditional data warehouses to cloud architecture systems creates more efficient and effective data management across your organization. Effectively managing data leads to more powerful insights and bigger impacts on your bottom line. Notable benefits of switching to cloud architecture include:
- Data Cost Savings: On-site data collection and storage are expensive. You have to pay to purchase the hardware and systems, plus the cost of ongoing maintenance. These costs also usually include a full-time IT team member who is in charge of managing the systems and handling issues when things don’t go as planned. Upgrading to cloud architecture reduces or eliminates many of the traditional costs of using data. Cloud-based systems are usually less expensive than on-premise systems and could include general maintenance — such as regular updates — from the system itself.
- More Accurate and Defined Insights: Cloud big data architecture gives you the tools to cut through the noise when collecting data. These tools can be used to pinpoint the data you need from a variety of sources. The result is more accurate insights into the needs of your clients and your business.
- Improved Business Agility: One of the marks of a successful cloud business is the ability to be flexible in the face of change. Markets, competitors, and client needs can change without notice, especially in the digital age. Cloud architecture helps your business proactively meet challenges and make adjustments as needed for a more agile business.
- Grow Brand Advocacy: Give your clients the best customer experience, and they’re more likely to come back again and again. Using a cloud approach to data architecture gives your clients a completely customized experience. This tailored experience can create a lifelong client and brand advocate for your organization.
4 Tips for Switching to Cloud Data Architecture
Changing from an on-site data warehouse to cloud architecture is no small feat, but doing so can put a lot more power in your data. You’ll see more effective data insights for a more effective business. The good news is there are steps you can take to make the transition easier for you and your team.
- Get Flexibility from the Cloud: If you’ve never worked in the cloud, you might be hesitant to move your data management to a cloud-based system. However, cloud-based solutions not only make data management easier for your IT team, but they also give your business more flexibility. A cloud-based solution can be scaled to meet business needs as your business changes.
- Look for Smart Data Tools: Today’s AI and other automated technology can do a lot more than remember details about a client. Many cloud-based tools include machine learning. This means they can begin to anticipate client needs or decisions based on previous behaviors. Depending on your needs, investing in these smart tools can take your data architecture to completely new levels, with benefits like more sales or higher customer satisfaction scores.
- Focus on Your Clients: Cloud data solutions focuses on client needs above all else. Making your clients your top priority ensures your business is working in the best interest of your clients, ultimately creating more effective products and services. Work backward from client to product to business processes to create a client-centric data architecture strategy.
- Customize Your Solutions: You’ll have a hard time finding a cloud data tool, software, or system that isn’t customizable. Even basic tools often have settings and configurations to customize the tool to your needs. Customizing your data technology gives you more from your data solution. A solution tailored to your needs also helps reduce your data architecture costs, as you won’t be paying for features you don’t need.
Get More From Your Data Than Ever Before
Are you still wondering how to take advantage of data architecture? The 5P team can help you get a better understanding of data architecture systems available for your business. Get more out of your data and you can start by getting a free consultation with 5P today.
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Originally published May 12, 2021.