Cloud Computing impacts on Ecommerce Industry



Computing has evolved a lot. Advancements in the computing started with the integration of operating systems and software to one point. Moving further basic communication was transformed with the introduction of emails and finally the development of World Wide Web has been milestone in the IT industry. There has been lots of changes in the technology and processes. Today increasing usage of Cloud Computing and mobile devices is reshaping the regular way of doing computing and storage.  Cloud computing is also effecting how we access the information and applications and implement business processes.  This shift of paradigm with the rising popularity of cloud is affecting the industries and market trends too. It has been predicted that in the coming 10 years there could be more than 100 billion devices accessing remote datacentres over cloud. Whopping numbers! With the dominance of smartphones, tablets and mobile computing over personal computers, it is not very difficult to predict these numbers.

Like other industries e-commerce businesses are also greatly affected by Cloud Computing in technical architecture and modes of service. Cloud computing impact on e-commerce businesses has been quite advantageous in improving their technical architecture.

E-commerce is characterized with the exchange of products and services over Internet. Hence a robust technical platform, secure payment gateway, evolutionary development approach and strong back-end database is very important for the basic establishment of service. Cloud computing eliminates the need of purchasing hardware and software and enables e-commerce companies to rent the applications and hardware. This model is scalable and cost effective. Companies need to pay for the resources based on their demand and usage. E-commerce companies can start with the basic requirements and upgrade their computing resources as their customer base grows with time. This simply lowers the costs as well as the risk involved with the high capital investments.

Cloud computing also helps in lowering the operations costs and improving the resource utilization efficiency. Transaction data is quite critical for e-commerce businesses. With Cloud datacentres, you can be assured of multiple backups and faster disaster recovery in case of any failure. When everything is in-house and there are no multiple backups in different geo-locations, it is very difficult to continue operations in case of any natural disaster or sudden failure.

Another challenge for e-commerce enterprises is to build trustworthy networks where buyer can securely submit their credit information. Technically sound and fully secured networks are required for efficient and safe payment cycles. Cloud computing provide even small and start-up e-commerce businesses to get access of computing and storage in highly secured datacentres which are completely insulated from outside interference. Hence e-commerce businesses can build trust in their buyers by using innovative cloud services.

Other benefits of cloud in e-commerce industry are improvement in service quality, simplification of backend process and improvement in the core competencies of organization. With Cloud, companies could outsource the traditional IT tasks, application services and data to cloud providers under a pay-as-you-go SLA. It enables businesses to focus on their core products and services. For e-commerce companies where competition is extremely high, it is very important to focus on product development and service quality. Cloud enables e-commerce companies to focus and improve their core competencies.

Hence cloud computing impacts on ecommerce businesses enable them to manage the various conflicts like strict budgets, lack of resources and various operational issues. With Cloud services, online selling is relatively easy and processes are much more advanced. It is easy for ecommerce companies to launch new products/services and roll back existing without effecting the whole system.

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