Cloud Technology in Retail: Examples, Trends & Challenges

When people who are ‘not’ tech-savvy hear the term cloud technology, they often think something about using clouds (the actual clouds in the sky) with computer technology. While that’s not what it actually means, just as how important clouds are for life on earth, cloud technology plays a pivotal role in today’s technological landscape. 

Whether you’re in the hospitality or retail industry, cloud technology can change how your business operates. It can improve business operations, make them cost-effective and save you physical storage space. But how? Well, that’s what we’re tackling today. 

Let’s delve into everything there is to know about cloud technology in retail and how you can benefit from it. 

What is Cloud Technology?

Cloud Technology gets easier to understand when broken down, so let’s first understand what the cloud is (in computer terms). The cloud is a virtual space on the internet where you and I can store any of our digital files like software, documents, pictures, and videos. This virtual storage can not just be used to store data but also is used to share information. Moreover, you can control physical devices in other parts of the world through this virtual environment. 

So, in simpler terms, cloud technology is a way of storing and accessing data, information and applications via the internet, rather than using your own computer’s storage space. 

Types of Cloud Technology

There isn’t an exact number of types of cloud technology out there but here are the most common ones:

Software as a Service (SaaS)

SaaS is one of the most popular forms of cloud technology. It is basically an online software application. One example of it would be a cloud-based POS system that allows you to store all your retail store’s transactional data in cloud storage.  This also means that you can access your POS system from anywhere around the world. Other significant examples are Microsoft 365, Google Workspace, and Salesforce.

Infrastructure as a Service (IaaS)

Much like how software can be shared and used via the cloud, infrastructure and computing resources can also be used and shared via the cloud and that is called IaaS.  provides virtualized computing resources over the internet, such as virtual machines, storage, and networking. Users can rent and manage these resources to build and deploy their own applications.

Platform as a Service (PaaS)

PaaS offers a platform that includes tools and services for application development, such as databases, development frameworks, and runtime environments. Users can focus on building and deploying their applications without worrying about managing the underlying infrastructure.

AI and Machine Learning as a Service (AI/MLaaS)

AI tools such as ChatGPT, Bard and Claude are truly the technological marvels of today. As more of us use these in our daily lives, we have to understand how these types of services trickle down for us to use. That’s where AI/MLaaS comes in. These guys provide cloud-based access to machine learning and artificial intelligence tools and services to everyone. Developers use these to test, build and develop AI models and applications for the general public to use. 

These were just 4 out of possibly more than 20 types of cloud technology out there today. New ways the tech could be infused in improving the retail business keep on popping out almost every day. 

Importance of Cloud Technology in the Retail Industry

Choosing the right cloud technology for your retail business can be beneficial. With that being said, here are some of the key benefits of cloud technology in retail. 

Scalable at Ease

As most retail businesses experience fluctuation in demands every once in a while, having cloud technology allows them to meet this changing requirement. The technology helps retailers quickly scale their tech resources like server computing power, storage space, etc. 

Affordable & Available

As cloud technologies are not on-premise, they save a lot of cash in purchasing the software. Moreover, being cloud-based, retailers can easily access their resources easily from anywhere at any time.

Easy Inventory Management

Retailers can now manage their inventory with as as cloud based inventory management provides real-time visibility. Whether you are in-store or out of the store, you will be notified with just an internet connection or wifi hotspot. 

Online Retail

Cloud powers up e-commerce and online retail platforms. This makes it easier for retailers to set up and manage online stores, payments and delivery.  

Supply Chain Optimisation

Technologies like cloud-based supply chain management systems help retailers to track the movement of their products. This visibility helps to optimise the operations regarding delivery tracking which reduces time and minimises transportation costs. 

Current Trends in Cloud Technologies For Retail Stores

According to a study by Flexera, “94% of companies use some form of cloud services in their business.” Talking specifically about Australia, a study by the Australian Bureau of Statistics, “in 2022, 85% of businesses reported using cloud technology and digital platforms, compared to 69% of businesses in 2020.” Whether that’s for contactless payments or security, cloud technology has already cemented its place in the retail world.

Here are the top cloud technologies used in Retail Businesses today:

Contactless Payment

With the help of cloud platforms, retail businesses like shopping centres and retail stores now offer contactless payments to all of their customers. It is truly a cashless experience where customers can pay for their goods directly with credit/debit cards or mobile wallets. 

Cloud Security and Resilience

More than ever, companies are prioritising cybersecurity and investing in cloud-based security solutions against data loss, cyber threats, and pandemics.

AI and ML-powered Cloud

By leveraging intelligent AI systems, cloud providers are making processes within their businesses more efficient, secure and better. Take, for example, a doctor using AI tools to analyse a patient’s CT scans for possible lesions. Another example would be in e-commerce, where AI and ML help recommend products based on user behaviours. 

Automated Marketing

Retail businesses now use cloud marketing automation tools to drive more sales. Popular tools like MailChimp, HubSpot, etc. allow retailers to analyze marketing campaigns and easily implement them. 

Omnichannel Retail

Omnichannel retail is another quite popular cloud technology in the retail industry. Retailers use it to optimise both their online and offline sales with one robust system. We call it all in one POS system. It lets customer sell products online through their e-commerce platform and also in-store. The best part is, they both are synchronised with the same inventory management software. These solutions provide a consistent shopping experience across various channels, from online to in-store, creating a seamless customer journey. 

Bonus Content: Modern Technologies Used in Business

Future Trends 

Now let’s talk about what you can expect from retail cloud technology in the future: 

AI and Machine Learning

Imagine a world where AI becomes so advanced that you no longer have to do any physical work. All you have to do is give your AI system instructions to run your retail store and it automatically runs your store for you. You can go on a vacation while your AI system manages inventory, handles deliveries and processes all transactions. You will no longer have to hire any human employees making your business way more cost-effective.  

The global AI in retail market size is expected to grow to USD 55.53 billion by 2030 exhibiting a CAGR of 34.1% from 2023. 

Augmented Reality (AR) and Virtual Reality (VR)

Whether you like it or not, AR and VR are the future. Take a look at Apple Vision Pro and Meta’s Oculus Quest 3, these are clearly just the start of what could take over the world someday, yet they look so surreal and futuristic already. AR/VR-powered cloud computing will allow retail shops to offer immersive shopping experiences. This lets customers not only view but also try on and experience products before purchasing, but in the virtual world. 

As per the report by BusinessWire, the AR in the retail market is estimated to reach USD 61.3 billion in size by 2031 with a growing rate of 41.4% CAGR from 2022. 

Voice Commerce

Voice-activated assistants have come a long way from being able to only crack silly jokes to now being able to control our phone’s functions. The system will only get better tomorrow and this could give rise to voice-activated shopping, making shopping even more convenient.

The global speech and voice recognition market size is expected to surpass USD 59.62 billion by 2030. The CAGR is expected to be around 25% during this forecast period. A report by Fortune Business Insights. 

Challenges & Impact of Change in Technology on Retail Industry

Here are some of  the major challenges faced by the retail industry by the change of technology:

1. New Vulnerabilities and CyberCrime open up as more and more retailers depend on cloud technology for their businesses. For example, if the system encounters issues with malware or viruses, they might need to remove them manually. 
2. Migrating old systems to cloud technology could be complex and costly.
3. Retailers need to constantly update their systems to meet the evolving expectations of their customers.
4. Not all retailers would want to adopt cloud technology and E-commerce giants like Amazon will make it challenging for traditional retailers to compete.
5. While cloud technology offers scalability, retailers must manage costs efficiently, as cloud expenses can spiral if not monitored closely.

Summing Up

Retailers should harness the full potential of cloud technology to provide exceptional shopping experiences and drive business growth. Cutting-edge retail solutions are reshaping the shopping experience and setting new trends that promise to transform the retail industry in the near future. At POSApt, we are committed to empowering cloud technology for retailers with innovative business solutions. We provide advanced retail point-of-sale solutions and e-commerce platforms, ensuring that you stay ahead in the dynamic world of retail.