diff --git a/app/client/package.json b/app/client/package.json
index 61b6ece608..d93d2d07ca 100644
--- a/app/client/package.json
+++ b/app/client/package.json
@@ -63,6 +63,7 @@
     "interweave": "^12.1.1",
     "interweave-autolink": "^4.0.1",
     "js-base64": "^3.4.5",
+    "js-sha256": "^0.9.0",
     "json-fn": "^1.1.1",
     "lint-staged": "^9.2.5",
     "localforage": "^1.7.3",
@@ -141,7 +142,6 @@
   "eslintConfig": {
     "extends": "react-app",
     "parser": "@typescript-eslint/parser"
-
   },
   "browserslist": [
     ">0.2%",
diff --git a/app/client/src/utils/AnalyticsUtil.tsx b/app/client/src/utils/AnalyticsUtil.tsx
index f67fdebbf4..398681a94e 100644
--- a/app/client/src/utils/AnalyticsUtil.tsx
+++ b/app/client/src/utils/AnalyticsUtil.tsx
@@ -6,6 +6,7 @@ import { getAppsmithConfigs } from "configs";
 import * as Sentry from "@sentry/react";
 import { ANONYMOUS_USERNAME, User } from "../constants/userConstants";
 const { cloudHosting } = getAppsmithConfigs();
+import { sha256 } from "js-sha256";
 
 export type EventLocation =
   | "LIGHTNING_MENU"
@@ -173,13 +174,16 @@ class AnalyticsUtil {
       const app = (userData.applications || []).find(
         (app: any) => app.id === appId,
       );
-      const user = {
-        userId: userData.username,
-        email: userData.email,
-        currentOrgId: userData.currentOrganizationId,
-        appId: appId,
-        appName: app ? app.name : undefined,
-      };
+      let user: any = {};
+      if (windowDoc.cloudHosting) {
+        user = {
+          userId: userData.username,
+          email: userData.email,
+          currentOrgId: userData.currentOrganizationId,
+          appId: appId,
+          appName: app ? app.name : undefined,
+        };
+      }
       finalEventData = {
         ...eventData,
         userData: user.userId === ANONYMOUS_USERNAME ? undefined : user,
@@ -193,22 +197,21 @@ class AnalyticsUtil {
 
   static identifyUser(userData: User) {
     const windowDoc: any = window;
-    const userId = windowDoc.cloudHosting
-      ? userData.username
-      : userData.anonymousId;
+    const userId = userData.username;
     log.debug("Identify User " + userId);
-    AnalyticsUtil.user = userData;
     FeatureFlag.identify(userData);
     if (windowDoc.analytics) {
-      let userProperties = {};
       if (windowDoc.cloudHosting) {
-        userProperties = {
+        const userProperties = {
           email: userData.email,
           name: userData.name,
           userId: userId,
         };
+        AnalyticsUtil.user = userData;
+        windowDoc.analytics.identify(userId, userProperties);
+      } else {
+        windowDoc.analytics.identify(sha256(userId));
       }
-      windowDoc.analytics.identify(userId, userProperties);
     }
     Sentry.configureScope(function(scope) {
       scope.setUser({
diff --git a/app/client/yarn.lock b/app/client/yarn.lock
index fc89847cbf..e0f7dac7b5 100644
--- a/app/client/yarn.lock
+++ b/app/client/yarn.lock
@@ -11781,6 +11781,11 @@ js-base64@^3.4.5:
   resolved "https://registry.yarnpkg.com/js-base64/-/js-base64-3.5.2.tgz#3cc800e4f10812b55fb5ec53e7cabaef35dc6d3c"
   integrity sha512-VG2qfvV5rEQIVxq9UmAVyWIaOdZGt9M16BLu8vFkyWyhv709Hyg4nKUb5T+Ru+HmAr9RHdF+kQDKAhbJlcdKeQ==
 
+js-sha256@^0.9.0:
+  version "0.9.0"
+  resolved "https://registry.yarnpkg.com/js-sha256/-/js-sha256-0.9.0.tgz#0b89ac166583e91ef9123644bd3c5334ce9d0966"
+  integrity sha512-sga3MHh9sgQN2+pJ9VYZ+1LPwXOxuBJBA5nrR5/ofPfuiJBE2hnjsaN8se8JznOmGLN2p49Pe5U/ttafcs/apA==
+
 js-string-escape@^1.0.1:
   version "1.0.1"
   resolved "https://registry.yarnpkg.com/js-string-escape/-/js-string-escape-1.0.1.tgz#e2625badbc0d67c7533e9edc1068c587ae4137ef"