Marketing Strategies

Should your data strategy move to the cloud? Key considerations for marketers

Did you know that 402.74 million terabytes of data are created by consumers each day?1 And who’s expected to parse this, almost unfathomable amount of data? That’s right, marketers. The sheer amount of data has realigned consumer expectations and marketers face mounting pressure to deliver more personalized, real-time, and impactful campaigns. At the heart of these efforts lies an organization’s data strategy. A significant decision for modern marketing teams is whether to move their data strategy to the cloud. Here, we’ll explore the key considerations for making that choice.

Why consider the cloud?

The shift to cloud-based solutions has become a critical topic for marketers. Cloud computing offers benefits that align closely with the goals of agile, data-driven marketing teams:

  • Scalability: Cloud platforms can scale storage and computing power up or down based on demand. This scalability is vital for managing fluctuating campaign data and seasonal marketing efforts.
  • Real-time data access: With data centralized in the cloud, marketers can access and analyze insights in real-time, enabling faster decision-making and campaign adjustments.
  • Cost efficiency: Pay-as-you-go models often mean reduced upfront costs compared to on-premises systems, with expenses directly tied to usage.
  • Collaboration and accessibility: Cloud solutions allow teams across locations to collaborate seamlessly, breaking down silos and fostering cross-functional initiatives.
  • Centralized data: Cloud-based data storage solutions allow for Zero-Copy data sharing. This allows customers to query customer data stored in the Cloud without the need for traditional ETL to move or copy the data. Instead, you simply connect and use the data in place, unlocking its value immediately with on-demand access to the most recent data. This also allows you to instantly enable and disable access to your data.

Challenges to keep in mind

While the cloud offers numerous advantages, it’s not without challenges. Marketers must carefully evaluate:

  • Data security and privacy: Storing sensitive customer data in the cloud raises concerns about breaches and compliance with regulations such as GDPR, CCPA, and HIPAA.
  • Integration complexity: Transitioning to the cloud may require significant effort to integrate legacy systems, tools, and data formats.
  • Cost management: While cost efficiency is a benefit, unexpected usage spikes can lead to higher-than-anticipated expenses.
  • Vendor lock-in: Depending on a single cloud provider can limit flexibility and make switching providers challenging in the future.
  • System duplication: It is important to have a strategy to retire legacy system to reduce overall cost saving and provide maximum efficiency. Cloud solutions should replace on-prem systems to avoid having yet another system layered on top of already complex infrastructure.

Key considerations for marketers

To determine whether a cloud-based data strategy is the right fit, marketing teams should assess the following factors:

1. Data needs and growth projections

Consider the volume, velocity, and variety of your data. If your organization expects exponential data growth, the cloud’s scalability will be a significant advantage.

2. Technology ecosystem

Evaluate how well a cloud solution integrates with your existing Martech stack, including CRM platforms, analytics tools, and automation software and how much legacy infrastructure can be replaced by moving to the cloud. Seamless integration will ensure a smoother transition and more cohesive workflows.

3. Security and compliance requirements

Work closely with IT and legal teams to ensure your chosen cloud provider meets all necessary security protocols and compliance standards.

4. Total cost of ownership (TCO)

Calculate the long-term costs of a cloud-based approach, factoring in storage, processing, integration, and potential hidden expenses.

5. Team readiness and skills

Assess whether your team has the expertise to manage cloud-based systems or if additional training and hiring will be necessary.

6. Partners

Evaluate your existing technology and data partners to see which of them offer modern cloud-based integration and collaboration capabilities.

The present informs the future

According to recent data, around 52% of companies have migrated a majority of their IT environments to the cloud, indicating a significant portion have successfully transitioned from on-premise to cloud-based data management solutions; with many others utilizing a hybrid cloud strategy, meaning they still maintain some on-premise infrastructure while leveraging the cloud extensively.

A recent study conducted by Zippia also found that:

  • 94% of enterprises use cloud services
  • 67% of enterprise infrastructure is now cloud-based
  • 92% of businesses have a multi-cloud strategy in place or in the works
  • 48% of businesses choose to store their most important data in the cloud

The rapid adoption of cloud services shows no signs of slowing down, In 2022, nearly 70% of organizations said they accelerated their migration to the cloud. 60% agree that cloud capabilities helped them achieve increased and sustainable revenue in the last year. As a result, organizations’ cloud computing budgets are projected to hit 51% of IT spending by 2025.

Transitioning your data strategy to the cloud is not just a technology decision—it’s a strategic move that can transform your marketing capabilities. By carefully evaluating your organization’s needs, weighing the pros and cons, and partnering with the right providers, you can unlock the full potential of cloud-based marketing.

As marketers look to stay ahead of their competitors, the cloud offers the tools and agility to thrive. The question isn’t just “Should we move to the cloud?” but rather “How can we leverage the cloud to drive marketing success?”

Have a question? Get in touch.


1 https://explodingtopics.com/blog/data-generated-per-day

Sal Pecoraro
Sal Pecoraro
SVP Technology Solutions

As Senior Vice President of Technology Solutions, Sal drives Data Axle’s strategic partnerships with top technology and data marketplaces, ensuring seamless integration and innovation across the ecosystem. His expertise spans data management platforms, identity resolution technologies, advanced reporting and campaign tools, and the full spectrum of database marketing and data processing solutions.