Existing eCommerce sites may be exhibiting signs that their glory days are behind them. How do companies know when that time has arrived?
- Poor response times or frequent outages
- Inability to keep up with competitors’ functionality
- Stalled multichannel sales strategies caused by inadequate integration between channels
- Difficulty complying with industry and government compliance mandates
- Facing cost-prohibitive improvements to fix inefficiencies in the current system
According to a Forrester Research survey1, 81% of ecommerce retailers are currently using a self-built or licensed on-premises solution and nearly three-fourths (74%) fear their existing solutions won’t scale with their growth plans. Almost half (46%) of retailers report difficulty hiring the staff needed to manage their licensed platform or to continually tweak their internally built eCommerce platforms to keep up with market demands and run the underlying infrastructure.
Ultimately, the issue of re-platforming an existing eCommerce system comes down to determining the investment required to meet the organization’s goals. There is more to cloud economics than the oft-touted ‘convert CAPEX to OPEX’,
Factors such as the pattern of demand, TCO, transformation costs need to be factored into any financial analysis of a potential solution. Choosing the eCommerce platform software balances the cost of licensing and management against the benefit of instant access to the tools needed to build and grow a competitive site. Sufficient variability in demand is required to realize cost savings using a public cloud hosting model; flat workloads are cheaper on dedicated infrastructure over a fixed contact term.
A company approaching the re-platforming stage should look into working with a partner that is able to apply skills and resources that are likely in short supply internally.