Market Trends of North America Operational Intelligence Industry
Cloud Accounts for Significant Market Share
- Cloud deployment is expected to hold a prominent market share owing to the added benefits, such as cost-saving, accessibility, scalability, and centralized service. It is also expected that more than 83% of the enterprise workload will be in the cloud, out of which 41% of the enterprise workload will be run on public cloud platforms. Another 20% will be private-cloud-based, while 22% will rely on hybrid-cloud adoption.
- According to the survey by Flexera, cloud strategy is increasingly focused on hybrid instead of public and private. A hybrid cloud is a new norm for businesses delivering products and services. According to Flexera, the hybrid cloud penetration rate increased to 72% in 2023.
- Moreover, cost-effectiveness plays a crucial role in driving cloud adoption for operational intelligence. Cloud providers offer a pay-as-you-go model, eliminating the need for substantial upfront investments in hardware and infrastructure. This allows businesses to allocate resources efficiently, investing in operational intelligence tools as necessary. The cloud's elasticity ensures that organizations only pay for the resources they consume, making it an attractive option for companies looking to optimize their operational intelligence efforts while managing costs.
- Furthermore, the speed and agility of cloud-based operational intelligence solutions are invaluable in today's fast-paced business landscape. Real-time data analysis enables organizations to make informed decisions on the fly, respond swiftly to changing market conditions, and identify emerging trends. The cloud's distributed architecture and advanced analytics capabilities empower businesses to derive actionable insights from diverse data sources in record time.
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Retail is Expected to Account For Significant Market Share
- The adoption of AI in the retail industry automates retail-related processes with lesser manual work, faster delivery, better customer and order management, and streamlined operations, all of which eventually reduce costs.
- Moreover, retail infrastructure is complex and distributed and includes POS (point of sale), checkout terminals, self-checkout units, PCs, and back-office servers. Thus, the increasing dependency on IT, ranging from wholesalers and distributors to manufacturers and suppliers, demands an integrated infrastructure that enables a seamless retail value chain. This caters to the growth of operational intelligence.
- According to Oxford Economics, 83% of large retailers consider digital transformation a core business goal. Oxford also highlighted the traction from small and midsize retailers ((59%) and their belief in digital transformation. In the era where digital transformation is gaining traction, the market studied is expected to grow along with the retail sector’s inclination to transform.
- Additionally, the retail sector is increasingly witnessing the adoption of cloud-based solutions, as they integrate several verticals, like inventory and order processing, thus improving the restocking capabilities.
- Furthermore, with cloud computing, retailers may have enterprise-wide supply chain visibility. Recently, Gap Inc. adopted cloud technology across its global operations for its Intermix brand. The fashion retailer has deployed cloud services provided by Oracle, with solutions comprising retail merchandising, integration, and inventory management.
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