Why Retailers Are Moving to Cloud First IT

Retailers operate in an environment shaped by rapid innovation, rising customer expectations, and increasingly complex technology ecosystems. Store operations now depend on digital systems that manage inventory, pricing, staffing, merchandising, omnichannel workflows, analytics, and customer engagement. Cloud platforms have become essential to managing all of this complexity, offering retailers the flexibility, automation, and scalability needed to deliver reliable shopping experiences. As a result, many retailers are shifting toward a cloud first IT strategy to modernize infrastructure, reduce costs, and unlock operational agility.

A cloud first approach prioritizes cloud-based systems when making new technology decisions. Instead of relying on on-premises servers or hardware-heavy deployments, retailers adopt SaaS applications, cloud-managed endpoints, and centralized platforms that reduce their reliance on physical infrastructure. This shift supports faster rollout of new capabilities, better resilience, and more predictable operational costs. It also gives IT teams a unified way to manage distributed stores, remote workers, and connected devices.

Retailers that embrace cloud first IT gain a competitive advantage, not only through cost efficiencies but also through improved speed, standardization, and customer experience. While the benefits are significant, the transition also introduces new challenges around security, data governance, and change management. Understanding these factors helps IT teams plan a more successful path toward cloud maturity.

Why Cloud First Strategies Have Become Essential for Retailers

Cloud adoption in retail accelerated significantly during the early 2020s as consumer behavior shifted and retailers sought to modernize legacy systems. Hybrid work environments, omnichannel integration, and the growth of edge and IoT devices all contributed to this movement. By 2026, cloud first isn’t just an efficiency play; it is a foundational strategy for supporting the scale and complexity of modern retail operations.

Several forces are driving retailers to prioritize cloud-first adoption:

• Increased demand for real-time data and inventory visibility
• Need for resilient, always-on systems that support in-store and online experiences
• Growth of distributed store networks that require centralized IT control
• Rising pressure to reduce costs while improving operational speed
• Greater reliance on mobile devices and edge technologies
• Need for rapid deployment of updates, features, and compliance requirements

Retailers that remain dependent on on-premises hardware often struggle to keep up with these demands. Cloud first strategies allow IT teams to shift from maintaining physical infrastructure to optimizing digital workflows, improving performance and reliability across all channels.

Key Benefits of Cloud First IT for Retailers

A cloud-first strategy provides retailers with measurable improvements across operations, performance, and IT management. These benefits support both long-term efficiency and daily store reliability.

1. Increased Agility and Faster Innovation

Cloud platforms allow retailers to deploy new applications, features, and updates more quickly. Stores no longer need local installations or manual updates, reducing delays and minimizing disruptions. Innovation cycles accelerate because IT teams can experiment, test, and scale new tools without large upfront investments.

2. Lower Infrastructure and Maintenance Costs

On-premises systems require hardware purchases, maintenance, facility space, and on-site service. Cloud solutions shift these responsibilities to providers, reducing total cost of ownership. Retailers can scale compute power, storage, and applications without large capital expenses.

3. Improved Reliability and Business Continuity

Cloud providers offer high availability, redundancy, and disaster recovery capabilities that help retailers maintain uptime. Outages become easier to manage because systems fail over to alternate environments, reducing store-level disruption.

4. Centralized Management of Devices and Applications

Cloud-first retailers gain unified visibility across stores, making it easier to monitor endpoints, manage updates, and enforce security policies. Platforms like Level support this model by giving IT teams centralized control over patching, configuration, and remote troubleshooting.

5. Stronger Security Posture

Although security remains a shared responsibility, cloud platforms offer built-in protections such as encryption, identity controls, compliance frameworks, and continuous monitoring. These features make it easier to maintain consistent security standards across distributed retail environments.

Challenges Retailers Face When Moving to Cloud First IT

While the cloud delivers significant benefits, retailers must plan their transitions carefully. A cloud-first strategy introduces new operational considerations that require coordination across IT, security, operations, and leadership teams.

Key challenges include:

• Migrating legacy systems that are not cloud compatible
• Reworking workflows built around on-premises tools
• Ensuring strong identity and access management controls
• Managing data governance across cloud and hybrid environments
• Training staff to adopt new processes and platforms
• Preventing shadow IT as teams adopt easy-to-access cloud apps
• Integrating cloud tools with existing POS and back-office systems

These challenges do not diminish the value of cloud adoption, but they require careful planning and a structured approach to change management.

How Cloud First IT Supports Omnichannel Retail

Modern retail success depends on the ability to unify digital and physical shopping experiences. Cloud platforms play a crucial role in enabling omnichannel workflows by connecting data, applications, and operational systems across locations.

Cloud first IT supports omnichannel performance in several ways:

• Centralized data provides real-time inventory visibility across stores and distribution centers.
• Cloud applications streamline buy-online-pickup-in-store workflows.
• Customer profiles and loyalty data remain consistent across channels.
• Pricing and promotions can be updated globally and applied instantly.
• Mobile checkout and kiosks rely on cloud connectivity for authentication and transaction processing.

These capabilities help retailers deliver smooth and consistent experiences, no matter where or how customers shop.

Cloud First Security Best Practices for Retailers

Security remains one of the most important components of cloud-first transformation. Retailers must ensure that cloud systems integrate securely with POS systems, endpoints, IoT devices, and third-party applications that support store operations.

Best practices include:

• Implementing strong identity and access management (IAM) policies
• Using multi-factor authentication for all privileged accounts
• Encrypting data in transit and at rest across all cloud platforms
• Monitoring cloud environments for unusual activity or misconfigurations
• Establishing clear data governance policies and access controls
• Maintaining consistent patching and system updates across all endpoints
• Reviewing vendor security postures for all integrated cloud services

Because cloud ecosystems change frequently, ongoing monitoring and automation are essential for maintaining strong security across retail environments.

How Level Supports Cloud First Retail IT

Level helps retailers succeed with cloud-first strategies by providing centralized device visibility, automated patching, and secure remote management capabilities. Retail IT teams use Level to manage distributed endpoints, enforce security configurations, and monitor performance across all store locations. These capabilities help IT staff reduce manual work and maintain consistent operational standards as retailers migrate systems into the cloud.

Level also enables faster rollout of cloud-based applications, improves troubleshooting speed through remote tools, and strengthens compliance through detailed reporting and alerting. Retailers adopting cloud-first architectures benefit from Level’s ability to unify device management, making it easier to support modern, cloud-powered store operations.

Cloud First IT Will Shape Retail Success

Retailers that embrace cloud first IT unlock greater agility, stronger resilience, and a more scalable foundation for innovation. The cloud helps retail organizations respond faster to market changes, deliver consistent omnichannel experiences, and improve overall technology performance across distributed environments. While challenges exist, retailers that plan carefully and adopt strong management and security practices will be well-positioned for long-term success.

With cloud platforms powering critical systems and solutions like Level supporting device reliability and automation, retailers can modernize confidently and build environments ready for the next generation of retail technology.