Cloud computing in retail is becoming in demand because of the many benefits it can offer, such as improving customer experience, enhanced security, and more. The global retail cloud market is rising, valued at $46,98B as of 2024. By 2029, the market is expected to reach $127,69B, growing at a CAGR of 22.14% between 2024 and 2029. [1] So, why is cloud computing being sought after? And what best practices can you apply to utilize it effectively? Let's find out.

Retail Cloud Market Forecast

How the retail industry benefits from cloud computing

Improved inventory management

Real-time inventory monitoring is critical to achieving success, especially in omnichannel retail. However, it is challenging for retailers to keep, check, and update stocks in real time. Storing inventory information online is possible with cloud computing.

It allows employees to access the necessary information from around the globe. Large retailers can analyze information on the platform with just a few clicks and gain valuable insights. Cloud consultants such as N-iX can assist in data analysis and train employees to keep databases correctly. Moreover, we can enhance your analytics with technologies, such as AI, that will allow you to quickly create accurate stock and distribution reports. 

Enhanced customer experience

Utilizing Cloud computing opens opportunities to adopt new technologies in retail, such as AI. AI-based Customer Relationship Management (CRM) systems assist retailers in gaining a deeper understanding of their customers, empowering them to provide personalized experiences. By collecting and analyzing customer data, these systems offer insights into customer behavior and preferences.

With the help of AI-powered cloud CRM, shopping becomes predictable, and retailers can track and analyze valuable customer data such as purchase history, advertisement engagements, or survey responses. CRM segment is in great demand because retailers are eager to boost customer retention and customer service. 

Easier communication

Setting up coordinated communication between departments becomes challenging for large retail companies, especially when scaling to many branches inside and outside the country. Cloud services streamline collaboration across different departments and reduce the risks of miscommunication because of the free access from anywhere and from any device.

Thanks to cloud services, employees enjoy a smooth, coordinated, and efficient working process. Cloud computing helps streamline operations across all retail departments and provides a comprehensive data vision through video conferencing, live streaming, chat apps, and more. 

Transparent supply chain

Cloud-based services provide seamless integration across all facets of a business, offering improved supply chain visibility and support for enterprise applications. Moreover, cloud computing helps prevent stock-outs, expedited deliveries, or high inventories.

On average, executives attributed a 16% reduction in supply chain operating costs to cloud technology. Additionally, 41% of executives identified the desire to enhance supply chain efficiency as one of the top three reasons for migrating their supply chains to the cloud. [2]

Improved data security

Sensitive business data is invaluable and requires effective management to prevent the risk of cyber attacks. By using cloud computing in retail, businesses can protect their data through firewalls, encryption, event logging, and internal firewalls.

Cloud providers offer a wide range of security services to protect confidential data. For instance, the Web Application Firewall from AWS is one of the key services that safeguard against bots, exploits, and account takeover fraud. Azure Cloud offers its Azure Firewall, an intelligent security service designed to protect cloud workloads running within Azure. Google Cloud Armor assists in safeguarding your web applications and services against DDoS attacks and other internet threats.

Read more: AWS vs Azure vs GCP: comparing the big 3 

Cloud-enabled disaster management

Traditional data recovery can take time and effort. Cloud disaster recovery models offer a solution to securely store and retrieve data from anywhere, anytime. Leveraging cloud-based disaster recovery provides scalability, cost-efficiency, and dependable performance. This makes it a preferred choice for retailers to safeguard their data and ensure uninterrupted business operations. It provides customers with the continual availability of retail operations, even during high-traffic periods or an outage at a specific data center.

Enhanced regulatory compliance

Keeping up with data protection and other legal regulations can become challenging for retailers. Cloud service providers offer compliance and security of the cloud infrastructure that supports their services. They meet legal requirements, ensuring operation within the bounds of the law because of going through assessments to confirm their legality. 

Benefits of retail cloud computing

Top best practices for implementing cloud computing in retail

Retailers face many challenges when implementing cloud services in their businesses. To help you make the process easier, we consulted our cloud experts to outline several best practices for adopting cloud computing:

Make an end-to-end assessment

Before implementing cloud computing in retail, you should start with a comprehensive audit of existing systems. At N-iX, we offer technology consulting services to provide our clients with cloud readiness assessments. This process usually takes up to two weeks and includes three stages. Firstly, the data collection stage, where we analyze the client’s product and gather all the information about business processes. Secondly, we go through the time and resources estimation stage to calculate the migration duration and costs. Lastly, we make a report which is a roadmap on migrating to the Cloud taking possible risks into account and providing the client with recommendations.

Estimate and compare different cloud providers

Evaluate different cloud providers and compare them. This way, you will find the best solution for your retail solutions. You should examine features, pricing, reliability, or compatibility. Research and analyze the pros and cons of cloud providers such as AWS, GCP, and Azure, and choose the one that matches your requirements. If you decide to partner with a cloud consultant, they can also help you pick the best option.

Entrust cloud computing to an experienced partner

You should consider partnering with an experienced company to implement cloud computing. These partners offer assistance, guidance, and specialized expertise to efficiently adopt cloud computing in your business. They can also implement best practices and ensure compliance with the retail industry standards. Collaborating with an experienced partner can assist organizations in optimizing their cloud infrastructure and achieving better outcomes. At N-iX, we assist companies in adopting cloud computing. We have more than 400 cloud engineers with expertise in all types of cloud migration and can help at any adoption stage. N-iX helps with cloud strategy to lead the way in adoption, provides pilot migration and cloud operation services, and tests the quality. Our clients get quick wins and long-term business value. 

Select the right cloud service model

Choose the cloud service model that would suit your retail business: SaaS, PaaS, or IaaS. Each of them differs in terms of costs, maintenance, and customization. SaaS is a more affordable and convenient option, but it is limited in customizing and integrating other apps. PaaS is a more flexible option and opens access to cloud features like source code editor, debugger, compiler, etc. However, PaaS also requires maintenance and technical support. IaaS is a more expensive option that gives you more control and freedom. You should choose the model that best fits your budget and goals.

Educate and train employees as soon as possible

It is crucial to train and educate staff about cloud-based services during the adoption process. If you start training immediately, you will benefit from reducing employee attrition, saving money, and accelerating the achievement of business goals. Additionally, it encourages a culture of ongoing learning and innovation, as employees are more involved in exploring new technologies and opportunities made possible by the cloud.


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Cloud computing in retail: featured success stories

So, what value can the cloud bring to businesses? Let's explore real-life cases of successful cloud computing adoption and see how businesses benefited. 

Automating tracking purchases and modernization of data performance 

BooHoo Group, a prominent fashion retail company, needed to automate data processing and modernize warehouse management and tax calculation. The company operates in six countries and has multiple separate management systems and Excel files with data. They often suffered from data losses and discrepancies. 

N-iX helped the client implement an AI-powered AWS-based fraud system to prevent data losses. We optimized databases from different channels and freed up more space in AWS S3. We also migrated gift certificate management to AWS Lambda functions.

As a result, the company has saved costs by aggregating all product-related data in one place and migrating gift certificate management to AWS Lambda functions. They increased customer satisfaction by automating purchase tracking. BooHoo Group increased data accuracy by automating tax calculations and increased database performance. 

Read the full case study: Increasing efficiency through automation and modernization for a leading global retailer

Price management system on Azure

A major distributor of office supplies and furniture experienced international expansion. To remain efficient, the company needed to manage product prices that varied based on different countries. However, the company's existing price management system didn't meet the speed, accuracy, and efficiency requirements essential for achieving its goals. 

N-iX assisted in developing a unified price management system on Azure Cloud to keep prices up-to-date at all times. While working on the implementation, we needed to migrate the database. Therefore, N-iX has transformed on-premise monolithic systems into cloud-based microservices and ensured that all data was consistent. 

Our client increased sales and reduced operational costs by implementing a unified price management system using cloud computing.

Read full case study: Effective price management in retail for excellent customer experience

Established a secure environment using AWS cloud functions

PrettyLittleThing, a UK-based fashion retailer, aimed to acquire a secure environment for managing thousands of products. 

N-iX has assisted the company's team in developing custom functionality and migrating data to Amazon SQS. N-iX helped PrettyLittleThing in enhancing product management, consequently improving customer service. Besides, we have built a secure and stable cloud environment with the help of an AWS Lambda-based cloud solution.

Read the full case study: Leveraging software solutions to grow revenue and increase efficiency in retail

Speak to an expert


Cloud computing is a core catalyst for transformation within the retail sector. Embracing this trend is essential for staying competitive and meeting evolving consumer demands. Retail businesses have experienced growth by adopting cloud technology, reducing operational costs, enhancing security, enabling real-time inventory access, and delivering seamless user experiences. 

By leveraging the transformative capabilities of cloud computing, retailers can navigate the ever-changing retail landscape with confidence, staying ahead of the competition despite the potential for unpredictable shifts.

Why choose N-iX to adopt cloud in retail?

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  1. Retail Cloud Market Size & Share Analysis—Growth Trends & Forecasts (2024 - 2029)
  2. How the cloud boosts supply chain innovation, Accenture 2022