Posts Tagged 'Slcloudlove'

February 2, 2015

#SLCloudLove: Growing an e-Commerce Business On The Cloud

Editor’s Note: Each month in 2015, we’ll be celebrating the cornucopia of reasons why the cloud reigns supreme — from customer tales to cloud insights and everything in between. During February, the notorious month of love, we’re showing you exactly why we heart the cloud. Follow all the fun on your favorite social networks by keeping tabs on #SLCloudLove.

Clicking Add to Cart—that’s how I like to shop these days. Brick and mortar shopping might be retail therapy, but the convenience and online discounts at my fingertips appeases my inherently lazy human tendencies.

With more and more online e-stores cropping up, physical retail outlets can no longer ignore not having an online presence, including a mobile-friendly website and ordering system. The numbers say it all:

  • e-Commerce sales are expected to be more than $1.7 trillion with mobile commerce accounting for nearly $300 billion in sales. Read more here.
  • In India, the e-commerce market is expected to reach $6 billion in 2015—a 70 percent increase over 2014. Read more here.
  • The Chinese government is allowing foreign-owned e-commerce companies to operate in the Shanghai Free Trade Zone as part of a pilot program; the market is expected to see a lot of inflow despite tough competition from local giants like JD.com and Alibaba. Read more here.
  • The six largest Southeast Asian countries (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam) reached $7 billion in total revenues in 2013 and will grow at a CAGR of 37.6 percent to reach $34.5 billion by 2018. Read more here.

So when I recently attended the iMedia Online Retail Summit, I jumped at the chance to discuss with the audience the benefits of moving their e-Commerce business to the cloud as well as discussing some very interesting stories about e-commerce platforms based in Asia.

Here is a quick overview of the presentation:

e-Commerce on Cloud
There is no denying the high reliance on IT. e-Commerce portals need to handle a rising number of Internet users, provide a secure and convenient online payment system, and support lucrative offers by e-tailors. The problem is that the utilization is unpredictable (except holiday season when it is predictably unpredictable!). If your site slows or freezes, especially during a sale, it can be compared to shutting your store on Black Friday. Customers will abandon their carts, and the social media sites will erupt with negative remarks—recall the recent headliner, Flipkart faces social media backlash over ‘crashes’, ‘misleading’ pricing.

The dilemma: Over-allocate and over-pay for unused resources just to manage sudden shopping spurts, or under-allocate resources and suffer the wrath of the new-age shopper. Cloud resources seems like a natural solution when you don’t want to be stuck in the either-or situation. But, not just any cloud solution will do. If a provider has a lock-in period or contract (even if it’s short-term)—well that's not really cloud, now is it?

Similarly the cloud solution is not justifying your investments if it is going to charge you every time you, as an internal user, try to move your virtual servers across your operating geos to get closer to customers. For example: your next online sale is targeted at holiday shoppers in Singapore or you want to carry out test runs for your Amsterdam customer base, but your core virtual server originally resides in Melbourne.

Solving e-Commerce Challenges with SoftLayer
I like using this image as it gives a great view into how SoftLayer can help e-commerce and e-tail customers manage day-to-day scenarios. From seasonal site traffic spikes to needing backup solutions for business continuity, SoftLayer has a solution for it. Plus SoftLayer brings advantages gleaned from working with e-commerce giants over the past decade.

Walking the Talk—Businesses that are Leveraging Cloud . . . Successfully!
In October 2014, Natali Ardianto, Tiket.com's CTO, gave a keynote address at Cloud Expo Asia about building one of Indonesia’s largest online travel and entertainment portals. When it first launched a few years ago, Tiket.com faced TCP, DoS, and DDoS attacks while hosting unsuccessfully on two different IaaS providers. The company needed a highly stable infrastructure delivering consistent performance and reliable support to ensure site uptime and a smooth end-user experience. Tiket.com chose SoftLayer to support its site. Running on SoftLayer bare metal servers, Tiket.com systems are now able to handle more than 300 API requests per minute and has experienced a 75 percent cost savings. Watch Natali's video where he discusses his cloud experience, or read the detailed case study.

HotelsCombined.com is an impressive collection of over 5 million real-time international hotel deals, a database of more than 800,000 properties and an affiliate base of over 20,000 companies. The company uses a combination of SoftLayer bare metal and virtual servers, load balancers, and redundant iSCSI storage. This provides the company with several thousand cores of processing power and enables it to remain lean and move quickly. The company also uses the SoftLayer infrastructure to provide real-time predictive models to the website and to support its business intelligence tools. Read the detailed case study.


Photo credits @iMediaSummit

While at the conference, I met up with a great bunch of entrepreneurs, startups and giants from across Asia. It was amazing to hear about the journey and growth plans of Rakuten, Life Project, Qoo10, Telunjuk, Seroyamart.com, and many more. Keep your ears open this coming year. The e-commerce landscape is rapidly progressing and these guys are weaving the fabric.

Cheers,

–Namrata (Connect with me on LinkedIn or, Twitter)

Subscribe to slcloudlove