Cloud computing is fast becoming an innovative tool in ecommerce. Image: 123RF
COME 11 Nov, a majority of people will be glued to their devices, searching for the best deals during the mammoth sales of the month.
Double 11 or 11.11 as it has come to be known, is one of the most anticipated days of the year for both shoppers and online retailers alike.
The trend, which started in China in the early 1990s as a ‘single’s day sales’, eventually caught on in the mid-2000s, sparking the shopping frenzy throughout South-East Asian countries.
Last year alone, the 11.11 sales in Malaysia, saw six times more participation of local sellers, as compared to an average day.
But this very nature of seasonal sales – be it 11.11 or festive holiday specials, is one of the reasons why cloud computing is fast becoming the go-to for many online retailers.
Evolution of innovation
The term cloud computing emerged in the 1990s, describing a novel concept of accessing software and files over the internet rather than on their desktops.
While the idea of multiple users sharing computing resources dates back to the 1950s, it wasn't until the mid-2000s that this on-demand technology truly took off, revolutionising both the operations of businesses and the way end-users utilise technology.
Over time, cloud computing evolved from a means of remote file access to a technology that offers much more.
Today's cloud computing services encompass a host of innovative functions such as analytics, applications, machine learning, artificial intelligence, security, and the Internet of Things, among many others.
For businesses, these tools of cloud technology also include robust analytics for understanding customer behaviour, sales trends, and performance metrics, facilitating data-driven decision-making to identify sales opportunities and optimise resource allocation.
To learn more about cloud computing, join Amazon Web Services’ AWSome Day Online Conference, set to take place on Nov 16. Register your participation here.
Tipping the scales
Businesses big and small use cloud services to manage cost and scalability during seasonal sales. Image: 123RF
Before the advent of cloud computing, large companies powered up IT infrastructure on-premise, using their own physical hardware and servers.
Managing these on-premise systems incurred substantial costs for both the IT infrastructure itself and the personnel required for ongoing maintenance.
Additionally, organisations relying on on-premise infrastructure were limited by the capabilities of their specific hardware setup.
Even during periods of lower demand, organisations had to bear the burden of maintenance expenses because downsizing the IT infrastructure was not a viable option.
During events like 11.11, for example, ecommerce retailers often experience a surge in traffic.
Cloud computing, in contrast to on-premise infrastructure, allows businesses to handle increased traffic without substantial infrastructure investments via scalability – where systems can grow and tolerate increasing demands or workloads of an organisation, without disruption.
Organisations also capitalise on the elasticity of the cloud – the ability for organisations to automatically acquire resources when needed or release resources when it is no longer required.
Big savings
Elasticity not only offers flexibility but also substantial cost reductions for many ecommerce businesses, a primary reason for the shift to cloud computing.
Instead of purchasing and maintaining physical data centres, some cloud service providers offer a pay-as-you-go model.
Businesses pay only for the services they need, be it computing, development platforms, or storage, thereby reducing the total cost of ownership of IT infrastructure.
This approach means that organisations no longer need to make significant investments in data centres and servers, as they only incur expenses for the resources they use and the duration for which they use them.
This enables businesses to shift their focus from the upkeep and construction of their own infrastructure to the delivery of new products and services.
Cloud computing also leverages economies of scale, allowing companies to acquire computing resources in large quantities at reduced costs.
Cloud service providers offer various cost-saving options, through savings plans and spot offerings, which provide significant discounts compared to on-demand pricing, particularly for workloads that are compatible with heterogeneous hardware and have flexible start and end times.
Benefits for all
Apps consumers use daily, including social media, ecommerce sites, search engines and gaming are all hosted on clouds. Image: Unsplash / Ali Pli
The advantages of transitioning to cloud computing are evident for organisations of all sizes, as well as for end-users, by putting applications in closer proximity to end users, reducing latency and improving their overall experience.
Regardless of their location, consumers can access a wide range of services through their devices thanks to cloud computing, which allows organisations to enhance their IT capabilities in areas of security, reliability and agility.
Essentially, cloud service providers handle the heavy lifting, relieving organisations of the burden of maintenance and upfront infrastructure costs.
We may not realise it, but in our daily lives, the cloud plays a significant role, from streaming our favourite TV shows and music to updating social media accounts and conducting online banking.
When it comes to sales, it is no different. A survey conducted by Facebook and Bain & Co in their annual SYNC Southeast Asia report in 2021, found that Malaysians spend 80% of their time online window shopping.
The survey also revealed that Malaysians visit as many as seven websites before making a purchase decision, driven by the convenience and flexibility offered by ecommerce retailers, who utilise cloud services to manage the ebb and flow of consumer demands.
Sky’s the limit
As businesses embrace technology's transformative capabilities, the cloud has emerged as an indispensable tool, fundamentally altering the way organisations conduct their operations, connect with consumers, manage data, and expand their endeavours.
With the cloud’s many benefits, particularly in scalability, cost-effectiveness, automation, the creation and access to the latest innovative technologies quickly and conveniently, the role of the cloud – for both businesses and consumers in the rapidly evolving digital age, cannot be disputed.
