Cloud-based eCommerce solutions are essential for the sustainable growth and development of eCommerce companies due to bundle of advantages it offers. Check out more here!
ASSOCHAM and Forrester notified India’s e-Commerce revenue is expected to jump from $30 billion in 2016 to $120 billion in 2020, growing at an annual rate of 51% in their joint study paper. This is the effect of high internet penetration and relatively better economic performance.
The changing buyer behavior, increasing competition, emerging technological trends, market oppotunities and challenges have made the CIOs and CFOs analyse and re-draft their digital strategies. This holds good for both B2B and B2C clients where the IT leaders should be mindful of their organisation’s spends. The companies , also, aim to expand the geographical reach to reap more profits. These are just a few reasons why ecommerce companies are seeking help of cloud service providers.
Hypothetical Case on Cloud Adoption for eCommerce
Lets take an example of a new ecommerce company. The company would want to expand geographically, position a brand name, test a business model, introduce a new product line or products, develop a trust amongst customers. Being a new player in the market, the company may lack market intelligence, capital, technology or skilled people with security being a major issue. All these can be tackled with the help of cloud-based ecommerce applications at a reasonable investment. The right choice of cloud computing provider will ease the tasks for the market players.
Ref: Scirp Journal
Key benefits of Cloud solutions by eCommerce company:
- Security of data and transactions
- Investments tailored to the needs of e-commerce
- Support and technical expertise with better TAT
- Robust and scalable IT infrastructure
- Enhanced mobility
- High percentage of CAPEX saved and OPEX considerably reduced
- Good service can help retain long term valued customer relationships.
- Regain focus on its strategic business initiatives
- Tackle majority of issues an online business can face and fool-proof DR
- Competitive advantage over competitors who have not adopted cloud technology
- The Google SERP gives a long list of results for ‘Cloud-based ecommerce solutions’ or ‘SaaS’, confusing and making difficult to understand the selection of the relevant.
With SaaS, the costs incurred in IT are predictable and lessened as compared to traditional on-premise IT. This makes electronic retail brands to adapt the omni channel approach i.e. either they use the cloud service entirely or complement their existing IT infrastructure with cloud.
The below figure depicts the trends of SaaS adoption in North America & Europe. The time has come that the Indian firms should plan to use Software–as-a-service to complement with or replace the existing ecommerce software, keeping in mind the predicted growth.
According to ecommerce giant , Amazon, cloud computing significantly reduces the costs of hardware procurement, security, privacy, energy and maintenance.
The deployment of cloud SaaS model can prove to be feasible and effective option. The demand for the cloud is all set to soar, owing to the an array of online shopping websites launching in India. It is quite evident that cloud computing is essential for e-commerce as it provides a full suite of benefits for e-commerce industry. The e-commerce business may be even more tightly integrated with cloud computing, in future, for sustainable development and growth.
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