When the online store moves to the cloud!
Stores from the cloud have many advantages: they are highly scalable, fail-safe, and inexpensive. However, the switch to the cloud also has pitfalls that need to be considered in advance.
Those who want to maintain an online store usually choose between three operating models: using their own IT resources in a self-operated data center, classic store web hosting with a provider, or using a cloud platform.
While setting up and operating your own store infrastructure is only worthwhile for very large web stores, the other two models are suitable for e-commerce providers of any size. This is because a wide variety of storage solutions can be used with both variants: from a self-designed store interface based on e-commerce solutions such as Magento or Shopware to modular systems such as Commercetools to ready-made stores that can be set up with just a few clicks, such as those offered by 1&1 or Shopify.
The main difference between running a store in the cloud and classic web hosting lies in the use of resources. With a hosting provider, the store software runs permanently on one or more mostly virtual servers. In the cloud, on the other hand, the computing resources required for operation are allocated dynamically.
“The core idea of a cloud application is that server capacity is used on an as-needed basis, with the aim of achieving a positive user experience at all times while at the same time being cost-efficient,” explains Dave John.
A maximum of flexibility
HeySupport has been relying on the cloud infrastructure of Amazon Web Services (AWS) for several years now, and its solution is an e-commerce platform developed specifically for the cloud. This offers store operators maximum flexibility, for example, to balance peak loads, says Dave John: “Retailers can run advertising campaigns, for example, without having to manually provide more server capacity for this.”
In addition to the flexible scaling of computing capacity, the cloud also offers advantages in terms of store reliability. To ensure high availability, store systems must be maintained in parallel in at least two independent data centers. Operating and maintaining such a redundant IT infrastructure in-house or via a hoster is much more expensive and time-consuming than using distributed cloud resources, which redundant data storage already provides as a service.
More protection and convenience, but less individuality
Dave cites data security and protection against cyberattacks as another advantage of cloud-based store solutions: “Since web stores are repeatedly the target of DDoS attacks, a good defense strategy is required.” In DDoS attacks, criminals paralyze a store with a large number of simultaneous calls. According to Dave, defending against such attacks is easier in a distributed cloud environment than in a company’s own data center or with traditional hosting.
However, using an e-shop from the cloud also has disadvantages. “Because you have built up less of your own IT, you can also realize individual wishes less often,” says Achim Himmelreich, “You are dependent to a certain extent on the innovative power of the store partner.”
The dependency can also become a problem in another place: In the cloud, the provider usually takes over the automatic installation of store software upgrades and security patches, which is usually a welcome service. However, if the store backend is not compatible with the latest version, this can lead to system failures.
“With standardized systems, the implementation options are limited and the provider ultimately retains sovereignty over updates, adjustments, and the reliability of the system,” summarizes Dave John.
He also has concerns about the General Data Protection Regulation (GDPR): “Processing of personal data must comply with the GDPR. Providers from third countries must at least comply with Chapter 5 of the GDPR, although the practical implementation of guarantees is also unclear here,” warns Dave. Chapter 5 regulates the transfer of personal data to third countries or to international organizations. Among other things, it prohibits access to EU citizens’ data by foreign authorities without an international agreement or mutual legal assistance treaty.
This is a problem for U.S. providers because they are required to give U.S. authorities access to data stored outside the United States as well. Without the consent of the regionally competent authorities, this is contrary to the GDPR. “Incidentally, the merchant is also liable for violations of data protection law, and not just the provider of the system,” says Dave. Therefore it is recommended to only choosing providers who carry out their data processing in the EU or the European Economic Area.
Costs in the cloud can get out of hand
Costs can also become a trap. With usage-based billing, as is common in the cloud environment, costs can get out of hand, for example, if traffic or sales grow much faster than anticipated. The combination of licenses, customizing, and consulting should be carefully calculated, especially in view of the dependency on revenue, number of transactions, and other factors.
Markus Neumann, Managing Director at the e-commerce agency Mediawave, recommends not underestimating the points of setup and maintenance either: “The setup of a cloud must be precisely defined and include a detailed catalog of requirements, otherwise the costs can quickly add up unintentionally.”
Migration to the cloud, but also from one provider to another, is not trivial and needs to be carefully considered. “You shouldn’t leave anything to chance in a migration and generally check and test until all scenarios have been run through,” says Neumann. Most important, he says, are scalability and load tests to explore the limits of the new environment. “It’s also essential that databases and other systems are compatible and connected via a secure connection.”
According to Dave, the most important preparation is to simulate existing and future workflows in advance and also try them out in the new system. “Often, a store operator decides on a system, pays for the data migration, and then discovers that the required workflows cannot be implemented,” Dave explains. He advises great care: “Many parameters play a role in the decision, which should be meticulously considered in advance and tested with business games.”
