| The retail industry exemplifies the maxim, change is | | | | plans. |
| constant. Still, the approach of the industry towards | | | | Another important area of cloud application will be |
| emerging technology of cloud computing is somewhat | | | | inventory management. Real time data and cloud |
| baffling. Cloud computing, a paradigm shift after the | | | | architecture will largely reduce the problems like stock |
| client-server model break-through of the eighties, is | | | | outs and overages. As well known, online retailers do |
| starting to show up in every other business. Curious, | | | | not have inventory managed by themselves. Instead, it |
| retailing industry is clearly lagging behind. It happens | | | | is done by the manufactures. Cloud computing can |
| when the practical applications of the technology can | | | | provide an efficient utilization of logistics, which will |
| do wonders to the industry. The word 'cloud' in cloud | | | | keep losses to the minimum in inventory management. |
| computing is actually a metaphor used for internet. | | | | What the online commerce does can be extended to |
| Using internet would have robbed the concept of its | | | | whole of retail sector. Besides, as the cloud provider |
| novelty. | | | | will be serving numerous retailers, they can very well |
| Although everyone is familiar with information sharing | | | | manage difficult situations like stock unavailability. Cloud |
| through internet and worldwide web, performing all the | | | | providers can provide valuable advises to retailers |
| operations of computing through the internet is not so | | | | regarding product availability and back-up stock from |
| familiar. Cloud computing exactly does the same. It | | | | forecasts. They can get realistic forecasts by |
| shares information, software - applications and | | | | analyzing huge amounts of data from numerous |
| operating system - and infrastructure - hardware like | | | | retailers. Thus retailers can develop a supply chain |
| servers and storage units - using internet. A | | | | where the right product arrives at the right time. |
| revolutionary cloud computing model can avail high | | | | Tier one retailers can save lot of expenditure in IT |
| power computing to the customers who need to have | | | | management, if they switch to cloud computing |
| only typical input/output infrastructure. | | | | solutions. The complexity of keeping and managing |
| Software industry giants have already started | | | | individual systems can be avoided. Today large |
| providing their services on cloud. CRM of | | | | retailers struggle to keep tens of thousands of |
| salesforce.com, office applications from Microsoft and | | | | computers across hundreds of locations. The |
| Google and IBM enterprise solutions have already | | | | management of such a complex system causes |
| become popular. Sadly, retailing - one of the largest | | | | enormous expenses for them. Such operations often |
| sectors of the economy - has not yet begun its | | | | cause poor decision making in their field of |
| experiences with cloud computing. | | | | competency - retailing. Large expenses of |
| In the context of retail industry, cloud computing is | | | | management and administration of IT and networks |
| particularly efficient in collection and analyses of huge | | | | can be reduced by simply switching over to a trusted |
| volumes of sales data and in real time inventory | | | | cloud provider. |
| management. | | | | What is the difference between cloud computing and |
| In retailing, points of sales generate large amounts of | | | | traditional model? Cloud computing has a number of |
| data each day. The sales data can be obtained | | | | advantages over the traditional software business in |
| through loyalty cards and discount coupons also. Most | | | | which retailers get licensed software installed in their |
| low and medium level retailers do not have the | | | | systems. Here the retailers need not spend huge |
| necessary resources to capture or utilize such | | | | money on software licensing. They need not buy high |
| enormous amounts of data. Cloud provider in retail can | | | | end servers with high computing powers. There is no |
| collect such data from sophisticated server networks | | | | requirement of sophisticated storage units. The |
| connected to the supply chain to independent cash | | | | administration and networking of computers can be |
| registers at family owned small stores and store it for | | | | avoided. The pain of providing fire-wall and antivirus |
| the retailer. Such stored data may be accessed from | | | | protection is avoided. Thus a there can be a significant |
| anywhere, provided internet is accessible. A cloud | | | | reduction in investment as well as in operating costs. |
| computing provider can track performance of | | | | One significant benefit for the cloud provider will be |
| products in comparison to previous time periods. The | | | | that of scale. Affordable solutions can be provided, |
| cloud provider can identify the trend and seasonality | | | | considering the huge number of retailers in the industry. |
| component of each product, brand or category and | | | | Most of the tasks to be performed by the provider will |
| identify and monitor the performance. Then it can | | | | be of repetitive nature. Administration and |
| provide analytical results to the retailers. The provider | | | | management of databases can be easy due to |
| of the service can serve many retailers at the same | | | | centralization. The robustness of the whole system |
| time, without making each retailer do it individually for | | | | can also be ensured. Security and other reliability |
| themselves. | | | | threats can be minimized due to the salient features of |
| The sales data collected from the point of sales is | | | | cloud architecture |
| currently under-utilized. It is more due the incompatibility | | | | The future of the cloud in retail starts with small |
| between volume of data and the processing power of | | | | retailers. Small retailers can effectively implement cloud |
| the system. Such time consuming analyses fail to | | | | solutions faster. Such solutions offer them significant |
| provide any useful insight in to customer behavior or | | | | cost reductions also. Any new venture in retail will also |
| trends in sales. The cloud provider can utilize high | | | | look for quick and easy implementation. An established |
| power computing resources and statistical models to | | | | cloud provider with a successful cloud model can |
| analyse data in much shorter time. This is more so with | | | | provide quick and cheap solutions. The giants in retail |
| to real-time analysis. Real-time analyses require huge | | | | industry may hesitate to adopt the cloud solution, |
| capital expenditure and it incurs significant operating | | | | considering the current maturity of the technology. With |
| cost, often unaffordable to retailers. | | | | improvements in cloud applications as well as in |
| A good cloud provider can easily help the retailer in | | | | internet technology, they will find it cost-effective to |
| understanding patterns and trends within large | | | | switch over. It is significant to note that innovations in |
| databases. It can be further utilized for creating | | | | most of the fields are taking place in the cloud |
| analytical models, and to provide an edge to decision | | | | computing model, not on traditional software business. |
| making. Thus retailers can increase their ability to | | | | Retail cannot shy away from the emerging and |
| forecast their customer's behavior and plan | | | | powerful trend in the world of computing. With lots of |
| accordingly. Retailers can then develop customer | | | | cost-saving and time-saving measures, it will be |
| programs, marketing, merchandising and pricing | | | | inevitable that retail will adopt cloud computing once |
| strategies to attract more business. The cloud provider | | | | there evolve competent solutions. |
| themselves design and provide such retailer specific | | | | |