Cloud analytics is a service model which provides elements of the data analytics process through a public or private cloud. Service providers follow a subscription-based, or utility (pay-per-use) pricing model while offering Cloud analytics applications and services. Analytics has six key elements to it. They are data sources, data models, processing applications, computing power, analytic models, and sharing or storage of results.
Cloud analytics is defined as any analytics initiative in which one or more of these elements are implemented in the cloud. Vendors, who offer cloud-based technologies that are designed to support a single element, refer to themselves as cloud analytics companies, which can cause confusion for potential users.
There are several cloud analytics products and services. Some examples of cloud analytics products and services include hosted data warehouses, software-as-a-service business intelligence (SaaS BI), and cloud-based social media analytics.
All enterprises must make sure they have fully grasped the extent of what’s involved, before they invest in cloud analytics. If they happen to invest without getting to know it fully, they may face the danger of going through it without actually understanding its scope. Although an investment in cloud analytics is considered profitable for the organisation, it requires proper planning to ensure that all six analytic elements are covered.
Advantages of Cloud analytics