Impacts of Cloud E-commerce

The ability to lower costs, accelerate deployments and respond quickly to market opportunities and challenges are just a few reasons why so many IT leaders are leveraging cloud-based e-commerce applications. Given the variety of solutions, IT leaders must research their options carefully in order to select the one that best meets their needs. Following are the top four impacts of cloud computing on e-commerce applications and steps IT leaders should take during their evaluation process.

Engaging IT

It’s easy for business leaders to focus on the benefits of cloud computing without considering the time and effort involved in implementing a viable solution. However, whatever cloud computing solution they select,  the application will need access to customer data, product data, fulfillment systems and other operational systems in order to support e-commerce. Prior to an organization investing in a cloud solution, the IT team must clearly outline the business goals, objectives, costs and benefits. They should also review what systems and data must be integrated (i.e., fulfillment systems, customer service systems and customer and product data sources) in order to achieve the goals. Finally, IT should explain how failing to integrate other systems will impact overall business results.

Evaluating New Opportunities with Less Investment

With smaller capital expenditures needed to launch a site, combined with operational expenditures that are typically billed on a “pay as you go” basis, organizations can shift their business online with minimal investment risk. A faster time to deployment allows them to streamline time-to-market for their products and services.
For companies looking to expand into new geographical regions or test an e-commerce business model with a new brand or product line, or as a proof of concept (POC), cloud-based e-commerce applications provide them with flexibility and scalability at a reasonable investment. However, it’s important for IT to evaluate the total costs involved in implementing a cloud solution including: integration, customization requirements, migration costs, e-commerce seasonality and peak loads and scalability.

Closer Observation of Solution Offerings

While many B2C companies use e-commerce platforms for direct sales, B2B organizations are also leveraging them to add transactional capabilities to their informational sites. In addition, the online experience is becoming more “consumerized,” meaning that B2B buyers expect a retail-like customer experience – even when visiting non-retail sites. Cloud solution providers (CSPs) that focus solely on creating retail models are often not well-versed in B2B requirements which can be more complex.

Courtesy: http://www.hosting.com/top-four-impacts-cloud-computing-e-commerce-applications/

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