Internet Retailer this week released the results of a survey showing that nearly half of retailer respondents were in the market for a new ecommerce platform. Many merchants (72%) said they planned to replatform within two years, and the largest percentage of retailers (40%) said they wanted to switch to a cloud platform because, as IR notes, “A web-based platform typically offers retailers access to faster site upgrades, often automatically added by the vendor, and requires less in-house technical staff because the vendor manages the underlying infrastructure.”
As the leading enterprise cloud commerce provider, we couldn’t agree more. The IR survey results follow on the heels of a recently-released report from Salesforce Commerce Cloud, Moving to a Cloud-Based Solution: 8 Ways to Change the Conversation With Your CIO, which gives business leaders the tools and information they need to convince CIOs (who are often the decision makers) of the many benefits of cloud-based commerce solutions.
As the report notes, more well-established retailers and brands often struggle to keep up with innovative upstarts. Larger players know that they need to be more innovative but are hampered by on-premise legacy technology, which lacks the flexibility to quickly adapt to changing business requirements.
Business leaders are often eager to move to a cloud-based digital commerce platform as it gives them the flexibility and speed to drive business growth. But they must collaborate with the CIO to get it done. How? One of the prime ways to convince them is to just state the facts. Simply put, cloud commerce drives business results.
Research shows that retailers on a cloud platform realize faster time to market, rapid innovation and faster international expansion, compared with retailers using a custom-built platform.
Need proof? In a 2014 Harvard Business Review survey of over 500 mid to large-sized enterprises, 74% said that cloud computing has delivered a competitive advantage. The analyst firm L2 found that the most agile, fastest-growing retailers use a cloud platform and that those retailers had higher revenue growth over a five-year period than those using in-house technology: 12% vs. 6%. L2 also found that a majority of retailers, 60%, on cloud platforms have expanded to emerging markets, compared with only 45% of brands using in-house technology.
The report examines several other ways for business leaders to make the case for cloud commerce, as well as specific examples of retailers driving double-digit growth with cloud.