Top 6 Benefits of Cloud-Based Hosting for E-Commerce Websites

In the past two decades, the rise of electronic transactions or e-commerce has revolutionized the business industry.

Cloud computing
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Any company that wants to successfully sell products and services depends mostly on its ecommerce platform. However, the issue many new businesses face today is whether to choose an on-premise or a cloud-based online interface. It’s a choice that not only dictates capital and operating budgets, but also determines a brand’s ability to grow and respond aptly to market opportunities.

Businesses embracing cloud

Cloud storage market statistics
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The latest market research shows that the majority of businesses are embracing cloud storage. The increasing demand for big data will swell the cloud market from $18.87 billion in 2015, to a whopping $65.41 billion by 2020 according to a Markets and Markets report. These figures represent a compound yearly growth rate of 28.2 per cent.

More and more companies, from healthcare and financial service to retail and manufacturing, are considering cloud as the ultimate storage solution for a growing range of applications, including backup storage, online storage gateways and data movement and access.

Hence, if your ecommerce business is also seeking solution for efficient data storage, the cloud system offers a wide range of benefits that makes it a suitable and compelling option. Here are 6 benefits of cloud based hosting for e-commerce websites:

1. Evaluating new investments

Cloud adoption statistics
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With the constant shifts in contemporary marketing industry requiring smaller capital expenditures to launch a site, it has now become easier for organizations to shift their work online with minimal investment. A faster deployment time allows them to streamline time-to-market for their services and products.

For companies that plan to expand their work into new geographical locations or test an e-commerce company model with a brand new service, cloud based e-commerce applications provide them with flexibility and scalability at a reasonable price.

It is, however, important for the IT department of the company to evaluate the total costs involved in implementing a cloud solution including migration costs, customization requirements and integration.

2. Increased scalability

One of the biggest perks of cloud based hosting is its scalability; often referred to as ‘elasticity’. Cloud hosting allows businesses to scale at a faster rate and support spikes in demand. Many online retail shops have big traffic events such as new product launches or the holiday season that require resources to meet the short term but high rise in product demand.

By installing a simple cloud system into your brand operations, you get the flexibility of being able to spin up and delete servers if required. You can just downgrade the scale once the promotional event is over so that you can even out your hosting costs with the growth of your brand. And since there are no long-term contracts, you will only pay for what you use. In this manner, your company’s operating costs will stay more in line with the revenue.

An online Singaporean furniture shop, Castlery, for example, is known for selecting the Manhattan SCALE™ as the key component for business transformation. The system promises to build world-class order fulfilment capability, ensuring a seamless service experience for customers and driving online business growth.

3. Improved back-up and security

The cloud system also serves as one of the best available options for backing up consumer data on your company stores. Corrupt software, power surges, hard drive failures and natural disasters can easily wipe your company out in an instant if your database isn’t secure and backed up.

Local back up can provide some form of protection, but it may not be enough in the event of extreme emergencies that damage your whole network such as a flood, storm, or fire. According to the PC Magazine, cloud based storage provides you with control over the data you want to save and where you want it stored. Many of the best dedicated servers also offer options like physical disc copies and file syncing to serve the purpose.

Securing company applications, on the other hand, facilitates critical consideration. Many cloud vendors usually implement security measures at the application, and network levels including biometric screening of personnel, data encryption and certification through third-party vulnerability assessment programmes.

ATT hosting service
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AT&T Hosting is one of those hosting service applications that offers a pay-as-you go access to virtual servers and storage integrated with networking functions and security.

4. Lowered cost

Price is no doubt one of the most compelling reasons why companies are turning to cloud based storage. Cloud solutions offers more ‘bang for your buck’ than any other per-unit storage option. Increasing competition amongst the cloud vendors has caused a priced war that Gartner refers to as ‘seemingly bottomless’. ZipCloud, for example, offers unlimited storage space for as little as $4.95 per month.

For most companies, storing their data on cloud represents a much more affordable option than hosting their own security network.

Al Futtaim Group
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UAE is not falling behind either in following the tech-trends by implementing cloud storage in some leading organizations like Al Futtaim Group. The system has helped transform consumer data into a more cost-effective, more efficient structure, adding benefit of using less power than traditional data operating systems.

5. File sharing

Another reason why e-commerce companies are storing data on the cloud is file sharing. As TechTarget’s Rachel Kossman suggests, the main reason why companies resort to cloud storage is because it allows them to share data without using a virtual private network. Along with lowering overall network costs, it also allows sharing of data that is too large to get easily shared through other means.

Before making a commitment, companies that are considering a cloud migration can also use file sharing to test how cloud based hosting works for them on a small scale.

6. Close scrutiny of consumer experience

Just like B2C companies, small scale organizations are also leveraging e-commerce platforms to add transformational capabilities to their CRM pipeline and informational sites.

Additionally, the online experience is becoming more ‘consumer related’, meaning that even when visiting a non-retail site, B2B buyers expect a retail-like customer experience. E-commerce business requirements become more complex by focusing solely on retail models, and as a result, their offerings are exclusive of functions such as repeat orders, segmented product catalogues and extended payment terms.

IT leaders have an unmatched number of cloud service providers to choose from, however, they make sure to carefully evaluate ones that have experience meeting their industry-specific needs, whether it is B2B, B2C, or a combination of both.

ecommerce customer experience at clothing and home decor giant Laura Ashley
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The clothing and home décor giant, Laura Ashley, doesn’t have to do more than they already do to delight their clients. When one buyer received the quality product in the mail, they got a special surprise two days before the delivery. Along with a thank you note, Laura Ashley upped their gratitude a notch by including a set of cosy lounging socks. The brand still takes customer responsibility to the next level.

Conclusion

The arrival of cloud computing, in many aspects, is equivalent to the landing of the internet in the 90’s. Cloud-based storage is no longer an industry buzz-phrase since it signals a transformational shift in how business data and e-commerce applications will be accessed, shared, stored and transacted online; offering a myriad of ways for the end user to engage in e-commerce operations.


AUTHOR BIO

ABOUT Erica Silva

Erica Silva is a blogger who loves to discover and explore the world around her. She writes on everything from marketing to technology, science and brain health. She enjoys sharing her discoveries and experiences with readers and believes her blogs can make the world a better place. Currently, she is associated with Airg Team for development work. Check out her firm’s performance reviews.

Find her on Twitter: @ericadsilva1

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