Skip to main content

Cloud Computing Strategy Crucial For eBay To Become One-stop E-commerce Shop

"We were the biggest and the best. And when you're the biggest and the best, there's a strong tendency to try to preserve that.....EBay has a storied past. But frankly, it's a past we've held onto too much." This is what the CEO of eBay, John Donahoe, told the analysts while explaining eBay's three-year revival plan to achieve low single digit growth. The outlined plan calls for continued investment into Skype, PayPal, and secondary-channels with an end goal to move eBay beyond an auction place to make it a one-stop e-commerce shop. Lack of explicit diversification plans to capture the fast growing e-commerce market (15% to 20% in the next five years) makes me wonder if eBay correctly assesses its core and context at this juncture and has the right infrastructure to support its strategy.

eBay's application-led multi-generation platform strategy has supported its core business strategy really well but eBay is significantly under-invested in the cloud computing to meet the new challenges. Unified e-commerce experience requires connecting heterogeneous and radically disparate data sources, applications, and their capabilities to monetize the traffic across them. Even if eBay does not tightly integrate Skype with PayPal and auction it should have the infrastructure to mine the information from Skype to support its strategy to gain major share of the e-commerce market especially to go after the digital goods such as e-books, songs, videos, ring tones etc. It would be a step backwards to limit the strategy view to the physical goods and a narrow transactional platform and not look at the holistic total customer experience that is SaaS delivered with the help of dynamic and elastic cloud-based platform.

MySpace is ahead in the game to monetize the immense clickstream data with the help of the cloud computing. eBay has huge untapped value in the social interaction and e-commerce data that it collects from all its assets. A right analytic cloud platform could make eBay rich from this gold mine. Social media cloud computing strategy is crucial for eBay not only to make competition irrelevant by going after emerging secondary markets but also to better prepare eBay for the megatrends such as millennial and sustainability. If eBay does successfully execute this strategy, tomorrow's eBay may not look like what you and I have seen so far.
Labels:

Comments

Post a Comment

Popular posts from this blog

Reveiw: Celluon Epic Laser Keyboard

The Celluon Epic is a Bluetooth laser keyboard. The compact device projects a QWERTY keyboard onto most flat surfaces. (Glass tabletops being the exception) You can connect the Epic to vertically any device that supports Bluetooth keyboards including devices running iOS , Android , Windows Phone, and Blackberry 10. On the back of the device there is a charging port and pairing button. Once you have the Epic paired with your device it acts the same as any other keyboard. For any keyboard the most important consideration is the typing experience that it provides. The virtual keyboard brightness is adjustable and is easy to see in most lighting conditions. Unfortunately the brightness does not automatically adjust based on ambient light. With each keystroke a beeping sound is played which can be turned down. The typing experience on the Epic is mediocre at best. Inadvertently activating the wrong key can make typing frustrating and tiring. Even if you are a touch typist you'll still ...
Post a Comment
Read more

Emergent Cloud Computing Business Models

The last year I wrote quite a few posts on the business models around SaaS and cloud computing including SaaS 2.0 , disruptive early stage cloud computing start-ups , and branding on the cloud . This year people have started asking me – well, we have seen PaaS, IaaS, and SaaS but what do you think are some of the emergent cloud computing business models that are likely to go mainstream in coming years. I spent some time thinking about it and here they are: Computing arbitrage: I have seen quite a few impressive business models around broadband bandwidth arbitrage where companies such as broadband.com buys bandwidth at Costco-style wholesale rate and resells it to the companies to meet their specific needs. PeekFon solved the problem of expensive roaming for the consumers in Eurpoe by buying data bandwidth in bulk and slice-it-and-dice-it to sell it to the customers. They could negotiate with the operators to buy data bandwidth in bulk because they made a conscious decision not to st...
Post a Comment
Read more

Rise Of Big Data On Cloud

Growing up as an engineer and as a programmer I was reminded every step along the way that resources—computing as well as memory—are scarce. The programs were designed on these constraints. Then the cloud revolution happened and we told people not to worry about scarce computing. We saw rise of MapReduce, Hadoop, and countless other NoSQL technology. Software was the new hardware. We owe it to all the software development, especially computing frameworks, that allowed developers to leverage the cloud—computational elasticity—without having to understand the complexity underneath it. What has changed in the last two to three years is a) the underlying file systems and computational frameworks have matured b) adoption of Big Data is driving the demand for scale out and responsive I/Os in the cloud. Three years back, I wrote a post, The Future Of The BI In Cloud  where I had highlighted two challenges of using cloud as a natural platform for Big Data. The first one was to create a lar...
Post a Comment
Read more