Here's How Cloud Computing is Helping the Retail Sector

Cloud services continue to gain popularity

More and more companies across industries are migrating their infrastructure to the “cloud,” especially in the aftermath of the COVID-19 pandemic. Data from Deloitte indicates that in 2019 the cloud computing market generated $1.43B dollars in Mexico, representing a 31% increase over the previous year.

Cloud computing is a network of remote servers that are hosted on the Internet for the purpose of managing, storing and processing data. As companies incorporate this technology they can obtain enormous benefits such as:

  • Increased efficiency
  • Reducing costs
  • Incorporation of new technological tools
  • Improved personnel management
  • Practicality
  • Data storage, among others

One of the sectors that benefits the most from cloud computing is retail, since cloud computing enables them to operate remotely and continue to connect with customers worldwide, even while much of the world’s population works from home.

"One of the primary digital transformation tools is cloud computing, since it enables the retail sector (among others) to quickly adapt to new imperatives while continuing to operate," notes Gustavo Parés, CEO of NDS Cognitive Labs, a software development company specializing in digital transformation and technical talent. “This makes companies much more resilient, efficient and competitive.”

Retailers that have not yet migrated to the cloud face huge challenges that could drive them out of business. Trends suggest that after 2020, digital transformation will be crucial for any company and not just a means of growth, but also survival.

NDS Cognitive Labs reveals 3 ways technology is revolutionizing the retail industry:

Improving customer experience

Cloud-based solutions optimize supply chain and logistics while enhancing customer experience. For example, inventory and order processing can be managed, reported and analyzed from the cloud, so stores always have the most requested products available, eliminating lost sales.

Digital data also helps companies make better decisions such as eliminating less requested products from their catalog, or streamlining their logistics operation so the estimated delivery date and the date the customer receives the package can be coordinated. This generates trust and loyalty by avoiding disappointment.

Data storage and processing

Cloud technologies also have the ability to collect, store and process large amounts of data effectively, in real time and securely, which is critical in retail since a large amount of information is constantly being collected and updated.

Data management translates into more sales, new customers, savings in operating costs, and better insights to increase profitability.


The cloud allows real-time access to up-to-date information from anyplace in the world. This feature has enabled companies from around the world to continue operating remotely, and provides security and resilience in the face of business interruptions.

Cloud services are responsible for the growth and continued strength of e-commerce since the pandemic, which has been key to Mexico’s economic revitalization. According to the Mexican Association of Online Sales (AMVO), last year e-commerce grew close to 30% compared to 2019.

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