eCommerce in the Cloud

Chapter 1. The Global Rise of eCommerce

The growth of ecommerce around the world is unstoppable, with double- or even triple-digit growth seen annually since its emergence in the mid-1990s. This growth has enormous technical implications for both application and deployment architecture, with all indications that this growth is likely to continue for the coming decades. According to a 2013 report by Morgan Stanley, global ecommerce as a percentage of total retail sales is expected to grow by 43%, between 2012 and 2016.^[8]

The reasons for this growth are as follows:

• Increasing use of technology

  • Internet use
  • Internet-enabled devices

• Inherent advantages of ecommerce

  • Price advantage
  • Convenience
  • Large product assortment

• Technological advances

  • Closer tie-in with the physical world
  • Increasing maturity of ecommerce offerings

Let’s explore each of these further.

Increasing Use of Technology

Internet Connectivity

Ubiquitous internet connectivity has been a direct driver of ecommerce growth, as the Internet is a prerequisite to the “e” in “ecommerce.” In developed countries, 77% of individuals use the Internet, whereas in developing countries, that figure is a lower 31%.^[9]

Figure 1-1. Internet Users of Developed and Developing Countries (% of total poulation), 1997-2013

Internet users heavily skew young. In the US, 97% of 18–29 year olds are Internet users, but that figure drops to 57% for ...