Cloud computing is growing in popularity across countries. Yet, it is the U.S. that leads the way with $206.1 billion in estimated market revenue as of May 2022. The reason for this growth is often the desire of companies for more flexibility and scalability when it comes to data storage and processing.

Estimated Revenue Public Cloud Computing in the Top International Markets

With more and more companies transitioning to the cloud or a hybrid arrangement, business leaders may be curious about what cloud-based data management actually entails. If you are one of them, keep on reading.

In today’s post, we’re going to discuss the development of a cloud data management strategy, why it may be a good idea, and the challenges that one may expect when opting for this approach.

What Makes Cloud Data Management Appealing

Enterprise cloud data management is basically when you choose to implement cloud-based platforms and tools that help manage your digital infrastructure. So, when developing data warehouses or lakes and building pipelines, you opt for deploying it all in the cloud instead of on-premises.

Learn more about Enterprise Data Management

As we have seen above, companies are increasingly relying on cloud computing and migrating their IT systems to the cloud. Naturally, you may be asking yourself why that is. So, let’s take a quick look at the benefits an enterprise can observe from cloud data management.

Benefits of Cloud-Based Data Management

There are multiple advantages we can discuss when it comes to data management in the cloud. However, there are three concrete pros that often cause businesses to seriously consider this approach.


With cloud-based solutions, companies can benefit from better scalability than with on-premises deployment. You see, in the cloud, more storage or computing power can be added whenever needed. Similarly, capabilities can be reduced if you no longer require them. This can be highly attractive to organizations that value flexibility.

Automated Updates

Another major benefit of pursuing a cloud-based data management infrastructure are the automated updates that come with it. With this strategy, the cloud vendor will take care of implementing any necessary updates into the cloud system so that you can focus on other tasks.

Lower Costs

Lastly, since cloud tools are more flexible and don’t require you to purchase and maintain your own hardware, the company’s bottom line will be positively affected. As cloud data management is typically associated with lower costs, it’s no surprise organizations are increasingly considering it.

How to Create an Effective Cloud Data Management Strategy

How to Create an Effective Cloud Data Management Strategy

Now that you’re familiar with the advantages of the cloud, you are probably curious to find out what it takes to develop a good cloud data management strategy. So, let’s discuss the concrete steps you may want to take on this journey. After all, it’s best to be prepared and know what to expect.

1. Identify Objectives

Just like in traditional data management, with the cloud, everything begins with identifying your goals and objectives. If you’re only at the beginning of your journey, it’s time to figure out what data sources you usually work with or might rely on in the future. Plus, you should outline how the digital information flows through your company, and determine the goals you want to accomplish.

On the other hand, if you already have a solid data strategy in place and simply want to migrate existing systems and workflows onto the cloud, think about the objectives you want to reach by doing so. Basically, how will you know that transitioning to the cloud was worth it?

Discover how we performed Cloud-to-Cloud Infrastructure Migration

2. Choose the Right Tools

Next, you need to take a look at different cloud providers to determine which one, or multiple, are best suited for your company. The most popular vendors at the moment are Amazon Web Services, Microsoft Azure, and the Google Cloud Platform. They have similar functionalities and offerings, but it’s still a good idea to learn more about each one before making a commitment.

Of course, if you’re outsourcing and working with an experienced software development partner, they’ll be able to guide you and advise on the most suitable solution for the unique use case of your business.

Read up on the Best Practices of Outsourcing Software Development

Additionally, at this point, it’s good to think about data-related platforms you may be missing. Would your organization benefit from a data warehouse? Or, have you been meaning to implement a data lake so that any digital information that flows through your company can be stored for later use? If so, this is the time to make the decision on whether you’ll pursue the development of these solutions or not.

3. Develop Thorough Data Processes

Now that you know your objectives and have identified the technology that will help achieve them, it’s time to actually implement the chosen software, build the data pipelines, and get access to informative analytics.

Here, you want to remember that to develop strong data processes you need to think about all elements of digital information management — collection, preparation, storage, and analysis. So, don’t forget to answer the following questions and implement software to help with all the related areas:

4. Establish Data Governance

Once your cloud software is in place, you’ve got to establish data governance policies. Essentially, this means outlining standards and procedures that should be followed by everyone in the company to prevent data corruption, loss, and security breaches.

Additionally, it should cover regulatory compliance nuances and guidelines on how that can be ensured. In highly regulated industries like healthcare or finance, this is particularly important.

5. Train Your Team

Finally, to truly benefit from your newly developed cloud data management strategy, you’ve got to train your employees and make sure they know the new procedures.

How can they utilize the new solutions? Which types of analytics can they run and how? Who should they turn to for help if there are any issues? All of these questions should be answered throughout training so that everyone knows how to work with the new strategy and ensure its success.

Key Challenges of Cloud Data Management Strategies

Key Challenges of Cloud Data Management Strategies

We’ve now covered the main steps of cloud data management and you may be eager to get started. Not so fast. Before you begin, let’s quickly go over some of the challenges you may face when relying on cloud computing. Of course, they shouldn’t deter you, but it’s always best to be prepared.


One of the primary reasons some organizations are hesitant about cloud computing is the challenge of ensuring security. With the cloud, digital information is stored on remote servers and accessed through the Internet. This makes it more susceptible to cyber attacks and breaches.

Of course, this isn’t exactly a new field, and major cloud vendors tend to have established security practices in place. Nonetheless, you should also think about how you will ensure data safety on your end.

Find out how Velvetech Protected Clinics from Security Breaches


Stemming from the data security challenge we’ve outlined above, those who rely on the cloud may also face new difficulties with regulatory compliance. While established cloud providers offer compliance reports from third-party auditors and other relevant documentation, it’s always your responsibility to go through these files and check if they are sufficient.

In short, just remember that it’s always up to you to adhere to the latest regulations that pertain to your business. So, don’t overlook this crucial aspect of your cloud data management strategy.

Cost Management

Lastly, although we did say that lower costs are a typical advantage of cloud-based strategies, it all depends on your unique business situation. You see, costs are generally lower thanks to the ability to only pay for what you need and easily scale back if needed.

However, you need to account for the fact that if your company keeps growing and data flows become more and more complex, or you require a lot of additional storage, costs will mount. So, this isn’t so much a challenge as something that you need to keep in mind when pursuing cloud data management.

Uncover Cloud Cost Optimization Best Practices

Begin Your Transition to the Cloud

As you can see, there is a lot that goes into a good cloud data management strategy. Of course, there are quite a few benefits to following the cloud approach, but don’t go into it without first considering the additional challenges you may face.

At Velvetech, we understand that it can be time-consuming and complicated to determine which technologies are most suitable for your business. So, we’re always happy to help guide companies on their IT transformation journeys.

Our team is highly skilled in delivering successful data management services and is always available to discuss a new project. Thus, don’t hesitate to reach out, and we’ll get back to you promptly.

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