News Article

August 20, 2019 - Benefits of Migrating to the Public Cloud for Retailers, Manufacturers and Distributors

The cloud is increasingly a competitive advantage for retailers, manufacturers and distributors in an era when downtime can spell disaster. Discover the top advantages of migrating to the public cloud, with insight from manufacturers like Munchkin.

Benefits of Migrating to the Public Cloud for Retailers Manufacturers and Distributors

In the wake of the eCommerce boom, technology has become an integral part of the successful relationship between retailers, manufacturers and distributors aligned to meet the dynamic demand – supply driven by today’s online consumer. Digital transformation has enhanced processes that were traditionally highly manual in nature – from inventory management to procurement.

IT professionals in this space increasingly feel the burden of responsibility for ensuring demand is met. Downtime and scalability have become a living nightmare, both for companies that rely on their eCommerce website to drive ROI, and for distributors and manufactures who live minute-to-minute with just-in-time supply chains and changes in consumer trends. The pressure on IT departments is significant, as disrupted flow due to application downtime comes at the expense of the company’s bottom line. To ensure that impact due to any such disruption is minimized or eliminated, IT will typically overcompensate by the purchase or provision of additional and duplicate capacity and related cost.

Having the right IT infrastructure in play is a major competitive advantage for retailers, manufacturers and distributors alike. Moving from unreliable legacy infrastructure to a modern platform that can scale on demand is appealing to those companies who are looking to stay ahead of the competition and "future-proof" their technology stack in an ever-changing industry. According to a survey of legacy Oracle customers, 9 out of 10 decision makers reported that their senior management mandated a cloud adoption strategy in all forms in 2019. As these aligned industries go through incredible transformation, their technology environments are evolving simultaneously. Below are the top benefits today’s retailers, distributors and manufactures are seeing by migrating to the public cloud.

How Retailers Are Reaping Cloud Benefits

Perhaps the biggest driver of cloud adoption by retailers is the agility the cloud offers to scale on demand. With the public cloud, retailers can easily ramp up additional applications and servers to accommodate major product promotions and peak shopping seasons. For example, take Amazon Prime Day. Many large retailers such as Target and Walmart offered competing Prime Day deals, effectively increasing online demand. Public cloud providers like Amazon Web Services (AWS) are specifically designed to scale on demand, so retailers can quickly spin up more servers to support sudden increases in online activity. With AWS, companies can then decrease their computing capacity just as quickly, providing significant benefit to those retailers who may have scarcer resources and don’t always need dozens of active environments.

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