Business on Cloud

July 19, 2015 - 4 minutes read

Change is the one predictable thing in a world where so much else is so unpredictable. Tried-and-true formulas and business models from the last 50 years no longer deliver the results they once did, and it is still far too soon to see the exact nature of the new formulas and business model. We can see that companies who optimized themselves to deal with change are more successful than companies who had not.

Technological advances have transformed the way we live our lives; be it working, socializing or spending money. Convenient, safe and quick innovations have meant that we can exist without even having to leave our homes. Shopping online is one that has continued to grow, dominating the high street offering and gaining popularity with consumers. It’s fair to say that the eCommerce industry has grown and developed in parallel with the internet. Given that the very basis of eCommerce relies on the internet, keeping up with modern advancements is essential. So what is everyone talking about at the moment? Cloud computing.

Cloud computing arises from the combination of technologies that have been developing over the last several decades.And the ongoing rapid evolution of cloud technology is driven by the pressing needs of organizations to cope with change in their markets and change in their financial situations. In a time where information and communication technology is now mission critical to every facet of business operations and where safe bets are hard to find, it is safer to explore new markets and new ventures on a pay-as-you-go basis instead of investing a large sum of money up front and hoping the investment pays off.

Experts describe the speed of access to web pages as the single most popular reason why e-commerce companies pursue the cloud migration pathway. Amazon increased its overall gross revenue by 1% for every 100 milliseconds of improvement in the speed with which its flagship website served up web pages. Inferior access speeds typically lead to traffic losses which invariably translate into lost revenue. For traditional on-premise e-commerce solutions, scalability can be a problem–both complex and expensive to solve. In addition, on-premise solutions require significant investments in both IT staff and infrastructure. Cloud-based commerce solutions offer key advantages here in that they can scale dynamically to accommodate increased load and they minimize the need for incremental IT spend because the infrastructure is provided by the vendor.

Managed cloud hosting services provided by qualified vendors allows e-commerce enterprises to focus on their core activities related to the sale of products and services on the Internet while technology related issues and challenges are handled by cloud vendors. Moreover, the pay-as-you-go model facilitates improved levels of resource management and usually generates long-term savings. The extreme effects of nature can close a workplace down, interrupting power supplies or affecting performance of the server on which all online activity is held, thus resulting in lost business. Using the cloud, however, negates all of these worries. Hosted separately, incidents that befall the physical place of business won’t have any effect. Services will run as usual and customers will never know there has been an problem.

Cloud covers all the bases which e-commerce industry is all about:

Simply put, Cloud computing is attractive to more and more businesses because it allows them to focus on what matters most- their customers, their business process, and the employees who nurture them.

Comments

comments