Clouds make information effectively available real-time data analysis for the consumers by use of devices, protocols, gateway and storage.
Once the data has been collected and it has traveled to the cloud, it needs to be processed.
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Main purpose of IoT solutions is to provide and act on real-time information, there needs to be a component that can handle enormous amounts of data to cater to the time-sensitive nature of the IoT model, this is where cloud systems come into play.
IoT cloud handles the data, stores and process it and makes decisions to make or break a deal.
Clouds form the brain of the IoT system as they are typically responsible for processing, commanding or taking analytics into account for the collected data.