The biggest advantage for businesses that implement cloud computing strategies comes in the form of reduced prices for services that would not otherwise be accessible due to their high cost of purchase. For smaller companies running on tighter budgets, the result of the access to these services is typically a leveling of the field versus larger companies that facilitates competition and increased efficiencies through the provision of services that in many cases are identical to those used by the larger rival. Until recently, these services typically included software, hardware, and storage, but cloud computing will see an influx of businesses seeking a new service in 2014; the aggregation and processing of big data that will be used for predictive analytics.
Once the province of a small number of companies that could allocate enough structural resources while hiring and supporting the top echelon of statisticians and analytics experts, predictive analytics is now coming to the mainstream with software programs that are less complicated and more user-friendly while also being highly scalable. These developments will broaden the utility of this valuable data and deliver the following benefits for online retailers:
* Predictive and intuitive search By analyzing prior on-site behaviors such as click throughs and purchases, search functions can be modified to suit consumers interests in real time. The presentation of results that sync with consumer preferences can boost sales.
* Targeted promotions By learning from the on-site behaviors of consumers from arrival to checkout, predictive analytics can adjust promotions to mirror those which lead to previous sales.
* Management of purchase prices This aspect of the analytics program processes on and off-site data, such as pricing for specific items at competing vendors, inventory levels, and previous consumer behavior to adjust purchase prices in real time. This gives smaller online vendors access to the same type of business intelligence that big retailers like Amazon have been using for years.
Until recently, the components of processing big data such as storage, collection, and analysis kept this valuable resource out of the hands of the vast majority of businesses. Now, with user-friendly interfaces and heightened affordability, predictive analytics will play a significant role in the future of cloud computing.
Once the province of a small number of companies that could allocate enough structural resources while hiring and supporting the top echelon of statisticians and analytics experts, predictive analytics is now coming to the mainstream with software programs that are less complicated and more user-friendly while also being highly scalable. These developments will broaden the utility of this valuable data and deliver the following benefits for online retailers:
* Predictive and intuitive search By analyzing prior on-site behaviors such as click throughs and purchases, search functions can be modified to suit consumers interests in real time. The presentation of results that sync with consumer preferences can boost sales.
* Targeted promotions By learning from the on-site behaviors of consumers from arrival to checkout, predictive analytics can adjust promotions to mirror those which lead to previous sales.
* Management of purchase prices This aspect of the analytics program processes on and off-site data, such as pricing for specific items at competing vendors, inventory levels, and previous consumer behavior to adjust purchase prices in real time. This gives smaller online vendors access to the same type of business intelligence that big retailers like Amazon have been using for years.
Until recently, the components of processing big data such as storage, collection, and analysis kept this valuable resource out of the hands of the vast majority of businesses. Now, with user-friendly interfaces and heightened affordability, predictive analytics will play a significant role in the future of cloud computing.
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