In the past, IT was very people-intensive, with clever technicians configuring systems that could connect devices and allow users to access the Web. Today, the focus is more on automation and creating a "factory" environment that is agile and can be used on-demand.
Grant Morgan, GM of cloud at Dimension Data, likened this change to having a less "personal" connection to your technology. Your platforms and servers are no longer your beloved pets, but they are now like a large herd of cattle that has a more functional purpose.
In line with this, Morgan noted the evolution from hosting to infrastructure as a service (IAAS) means things are becoming more standardised, automated and affordable.
Morgan provided some tips for online retailers looking to remain competitive in the global e-commerce space. E-commerce infrastructure platforms should focus on user performance, he said, adding this has become an important business issue. In order to boost performance, Morgan favours local hosting because it means the servers are located as close to users as possible, which reduces latency.
When deploying a specific project, online merchants should be thinking about scalability, which means paying for what they need, when they need it, said Morgan. "This involves switching off capacity when you don't need it and then scaling up when you do. Part of this is about being ready to grow and move further into the African continent or even go global if that is where your business is going," he continued.
According to Morgan, not only do e-commerce merchants want great performance at the right time and right cost, they also want to build a secure system suited for their specific business needs. In order to protect customer information, you have to be thinking about how best to back up your data, he added.
"It is about being able to compete on a global scale with a bit of a local touch," Morgan stated.
Securing your first sale
Jaco Jonker, CEO of bidorbuy.co.za, started his presentation with a reality check: "E-commerce is tough."
Speaking at the eCommerce Africa Confex in Cape Town today, Jonker outlined some of the things that start-ups should consider when they are looking to move into the online e-commerce space.
When starting out, new online merchants need to focus on finding their niche, he said, advising that one should avoid attempting to compete against large and well-established online players. "It is easier to become an authority on something and to manage and focus your business if you have a more focused game plan."
Part of this involves picking the best price point, said Jonker, which involves considering profit margins, product availability, shipping and return costs. This is all in addition to finding the right supplier. "Due diligence is an absolute must." Then come things like setting up the right Web site and online market place and marketing your offering using appropriate channels, he added.
Having a good product, catering to an underserved market with a product of service that is well-priced and customer-focused sets up a business for success.
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