By Sanjeev Sharma on Jul 13, 2012
[Re-posted from blogs.oracle.com/applicationplatform]
Like is the case with most fast-growing business, rapid growth itself creates certain challenges from an operational perspective and this is truer than ever in the e-commerce space. Today, consumers increasingly want a more sophisticated online shopping experience including higher degree of personalization, real-time promotions and guided purchase journeys. Yet consumers are becoming increasingly impatient and highly intolerant of the slightest of delays.Thus online retailers can no longer afford to have system outages or down-times or poor response times even during periods of peak demand.
In our conversations with online retailers there exists a unanimous consensus that, in even in online retail, shopping experience symbolizes value, quality and trust. As such online retailers are expected to move beyond simply delivering on their promises to consumers to exploring ways to exceed consumer expectations. Online retailers are trying to drive improvements in their online operations across three dimensions:
- Deliver a superior online shopping experience to their customers in terms of application response time.
- Eliminate down-time of their e-commerce applications with
fault-tolerance at each layer of the IT stack including storage,
networking, servers, operating systems and application server.
- Do more with less. Retailers recognize that their core competence is online retailing and not building or assembling high-performance data-centre infrastructure. Thus retailers want to simplify their IT infrastructure in terms of manageability and OPEX by running their applications on fewer yet faster systems.
From an IT perspective the quest to deliver superior online
shopping experiences by adding newer
online services comes down to improving throughput and mitigating
outages. Broadly speaking, there are primarily 3 factors why Oracle
become the logical choice of running business applications for online
Firstly, perhaps most importantly, the primary metric of success for online retailers is “Conversion Rates” i.e. percentage of site visits translating into sales. With Oracle Exalogic retailers are already experiencing up-to double-digit improvement in conversion rates. Every 0.1% improvement in conversion rates creates a size-able revenue up-lift.
Secondly, online retailers have been able to consolidate
their applications environment from hundreds of system down to a few
Exalogic systems. The reduction in physical data-centre footprint has
been in up-to double-digit numbers. This brings savings in terms of
hardware, software, labor and energy requirements.
Thirdly, with Oracle Exalogic, retailers have been able to deliver newer online services and improve performance of existing applications without incurring the delay and integration risk associated with a piece-meal, multi-vendor, data-centre technology stack. With Oracle Exalogic online retailers have been able to reduce go-live times of their application modernization projects significantly thereby shortening the strategy-execution gap and lowering operational risk.
Find out more, at the upcoming Exalogic Elastic Cloud 2.0 Launch.