The retail industry illustrates maxim, change is permanent. However, the industry’s approach to the emerging cloud computing technology is somewhat puzzled. Cloud computing, the paradigm shift after breaking through the client-server model of the 80s, is beginning to manifest itself in every other business. The curious retail industry is clearly lagging behind. This happens when practical applications of technology can work wonders for the industry. The word cloud in cloud computing is actually a metaphor used for the Internet. Using the Internet would deprive the concept of its novelty.
Despite the fact that everyone is familiar with the exchange of information through the Internet and around the world, the implementation of all operations on the calculation via the Internet is not so familiar. Cloud computing exactly does the same thing. It uses information, software — applications and the operating system — and infrastructure — equipment such as servers and storage units — using the Internet. A revolutionary cloud computing model can use high power computing for customers requiring only typical I / O infrastructure.
Veterans of the software industry have already begun to provide their services in the cloud. CRM salesforce.com, office applications from Microsoft and Google, and IBM enterprise solutions have become popular. Unfortunately, retail - one of the largest sectors of the economy - has not yet begun its experience in the use of cloud computing.
In the retail context, cloud computing is particularly effective in collecting and analyzing huge amounts of sales and inventory data in real time.
In retail, point of sale sales generate large amounts of data daily. Sales data can be obtained through loyalty cards and discount coupons. Most low and medium retailers do not have the necessary resources to collect or use such huge amounts of data. A cloud-based retail provider can collect such data from complex server networks connected to the supply chain to independent owners of cash in small stores and store them from a retailer. Access to such stored data can be obtained from any location if Internet access is possible. The cloud computing provider can track the performance of products compared to previous periods of time. The cloud provider can determine the component of the trend and seasonality of each product, brand or category, as well as determine and monitor performance. It can then provide analytical results to retailers. A service provider can simultaneously serve many retailers without making each retailer individually for themselves.
Sales data collected from a point of sale is currently underutilized. This is most likely due to the incompatibility between the amount of data and the computing power of the system. Such time-consuming analyzes do not provide any useful information about customer behavior or trends in sales. A cloud provider can use high power computing resources and statistical models to analyze data in a much shorter time. This is all the more true with real-time analysis. Real-time analysis requires huge capital expenditures, and it incurs significant operating costs, often beyond the reach of retailers.
A good cloud computing provider can easily help a retailer in understanding patterns and trends in large databases. It can be additionally used to create analytical models and to provide decision making. Thus, retailers can increase their ability to predict the behavior of their customers and plan accordingly. Retailers can then develop customer programs, marketing, merchandising, and pricing strategies to attract more business. Cloud vendors themselves develop and provide such plans to retailers.
Another important area of the cloud application will be inventory management. Real-time data and cloud architecture significantly reduce problems such as inventory and excess. As you know, online stores do not have inventory on their own. Instead, manufacturers do it. Cloud computing can ensure efficient use of logistics, which will minimize the loss in inventory management. What online trading does can be extended to the entire retail sector. In addition, since the cloud service provider will serve many retailers, they can very well cope with difficult situations, such as the inaccessibility of stocks. Cloud providers can provide valuable recommendations to retailers regarding product availability and reserve stocks from forecasts. They can get realistic forecasts by analyzing huge amounts of data from numerous retailers. In this way, retailers can develop a supply chain where the right product arrives at the right time.
First-level specialists can save a lot of IT management costs if they switch to cloud computing solutions. The complexity of storing and managing individual systems can be avoided. Today, large retailers are trying to store tens of thousands of computers in hundreds of places. Managing such a complex system leads to serious expenses for them. Such operations often cause poor decision-making in the field of competence - retail. The high costs of managing and administering IT and networks can be reduced simply by switching to a reliable cloud computing provider.
What is the difference between cloud computing and the traditional model? Cloud computing has several advantages over the traditional software business, in which retailers get licensed software installed in their systems. Here, retailers do not need to spend huge amounts of money on software licensing. They do not need to buy high-performance servers with high computing power. Requirements for complex storage devices are not required. Administration and networking of computers can be avoided. In order to avoid fire and antivirus protection is avoided. Thus, there can be a significant reduction in investment as well as operating costs.
One of the significant benefits for the cloud provider will be the scale. Available solutions can be provided, given the huge number of retailers in the industry. Most of the tasks that the provider must perform will be repetitive. Administration and management of databases can be easy due to centralization. The reliability of the entire system can also be ensured. Security and other threats to reliability can be minimized due to the essential features of the cloud architecture.
The future of cloud retail begins with small retailers. Small retailers can efficiently deploy cloud solutions faster. Such solutions also offer significant cost savings. Any new retail venture will also strive for quick and easy implementation. An established cloud computing provider with a successful cloud model can provide a quick and cheap solution. Retail giants may not have decided to make a cloud-based decision, given the current maturity of the technology. Thanks to improvements in cloud applications, as well as in Internet technologies, they will switch from an economic point of view. It is important to note that innovations in most areas occur in the cloud computing model, and not in the traditional software business.
Retail cannot evade the emerging and strong trend in the world of computing. Thanks to many economical and economical measures, it is inevitable that retail trade will take over cloud computing when competent decisions are developed.
