Cloud commerce
Cloud commerce is a combination of e-commerce and cloud computing . Specifically, the topic of cloud commerce only deals with the software as a service sub-area of cloud computing, or SaaS for short. In this case, the software offered in the SaaS model is an eCommerce system (primarily a shop system ).
Analogous to the SaaS model, cloud commerce is based on the principle that the eCommerce system and IT infrastructure are operated by an external IT service provider, the manufacturer of the software, and used by the customer as a service. The service provider takes over the complete IT administration and other services such as maintenance work and updates. For this purpose, the entire IT infrastructure, including all administrative tasks, is outsourced, and the service recipient can concentrate on his core business.
SaaS models such as cloud commerce are becoming increasingly important. The market research company Gartner forecast 2011 sales of 12.1 billion US dollars. This means an increase of 20.7 percent compared to the previous year (2010: 10 billion dollars). The North American market represents the largest concentration of demand (2011: 7.7 billion dollars).
Advantages and disadvantages of cloud commerce
From the point of view of the service recipient
Cloud commerce offers small and medium-sized companies a number of advantages over traditional license purchases and running their own IT infrastructure.
- advantages
- Low investment risk
- Transparent IT costs
- Accelerated implementation
- Reduction of IT process complexity
- mobility
- Concentration on the core business
The service recipient has a lower investment risk because he does not need any IT hardware for the software implementation. Two studies by McKinsey Consulting and Yankee Group show that the investment costs of a SaaS solution such as cloud commerce can be reduced by 30 percent compared to an on-premise solution , regardless of the number of users. Another advantage is the outsourcing of process complexity, in that maintenance work, updates and other IT tasks are taken over by the service provider. The software access via the Internet ensures a high degree of mobility, as the service recipient can access the system regardless of time and location. With an outsourced IT infrastructure, companies can concentrate on their core business or added value and thus avoid annoying IT tasks. IT is thus an easy-to-use commodity to ensure growth, flexibility, competitiveness and thus the existence of the company.
- disadvantage
- Dependence on the service provider
- Less customization options
- Data and transaction security
A disadvantage of cloud commerce software is that the service recipients are in a dependent relationship, since the customer is not the owner of the software. There is a risk that the service provider will shut down the system for a specific reason (e.g. bankruptcy). The SaaS solutions are mostly standardized, so that there are few options for adapting the scope of functions.
From the perspective of the service provider
Cloud commerce also has advantages and disadvantages for the service provider, which are described below:
- advantages
- Expansion of the IT service offering and generation of additional sales
- Long-term secured income and better liquidity planning option
- Reduced chance of software piracy occurring
The service provider has the option of expanding its range of IT services and thus generating further income. Since the service recipient mostly pays monthly fees for the use of the software, longer-term income can be secured and thus the liquidity can be better planned. In addition, there are fewer losses from software piracy, as the software is managed centrally by the service provider.
- disadvantage
- Investment risk
- Problems of acceptance in the IT market
- Possible damage to image and loss of sales
The cloud commerce provider has the problem of high investment risk if the software is not accepted by the customer as expected. In addition, he has to persuade the customer, since current acceptance problems are often justified with the disadvantages.
privacy
With cloud commerce, the customer's or sales data are no longer stored on their own computers, but with the respective system provider. There is regularly a case of order data processing between the provider and his customer in accordance with Section 11 of the Federal Data Protection Act (BDSG). The customer is obliged to carefully select the provider, to check it regularly and to document the result of the checks. The customer remains responsible for the legality of the data processing.
Cloud commerce company
Examples of cloud commerce offers are e.g. B. Magento Go , Amazon Webstore and Shopify in the US; Big Cartel in the UK; Big Commerce in Australia; Supr.com as well as XSITE , Jimdo , Intershop and Onshop.de in Germany.
Individual evidence
- ↑ See Central-IT (2008)
- ^ IT Business Edge (2011): Gartner: SaaS Growth Shows No Signs of Slowing , September 14, 2011, accessed December 28, 2011
- ^ Saugatuck Technology Inc.
- ↑ a b c Grobmann, Jewgenij (2008): On Demand ERP Systems-Opportunities, Risks, Requirements, Trends, Hamburg, 2008
- ^ Saugatuck Technology Inc.
- ↑ Koch, Florian (2009): Guide for SaaS Providers, Berlin, 2009