InternetSaaS E-commerce Services on the Rise

Convenience and low pricing will lure new entrants, small businesses and departments of large corporations to e-commerce delivered as a service.

By 2013, 90 percent of e-commerce sites will use at least one product from software as a service, or SaaS(define) vendors, according to a Gartner report released today. And 40 percent of e-commerce sites will use a complete SaaS solution. These sites will be put up mainly by SMBs and smaller companies, although some large enterprises will use SaaS as a way to experiment in new markets. "You'll have new entrants who will help grow the market, and you'll also have experimentation by the bigger companies," Gartner analyst Gene Alvarez told InternetNews.com. The bigger e-commerce players, however, will not use SaaS because they'll want to preserve the uniqueness of their sites, Gartner said. They also have concerns about the viability of SaaS to drive e-commerce on a large scale. As a result, according to Gartner, the more profitable and more high-end e-commerce sites will choose to either use a custom-built solution, which others can't copy without breaching trademarks. Another group of e-commerce sites -- those that use licensed software and combine it with custom code or other products to deliver custom capabilities -- will also not be too keen on SaaS. RELATED ARTICLES SaaS Best Path for SMB Unified Communications NetSuite's e-Commerce Embrace HP, Intel, Yahoo Team on Cloud Computing Labs Can the Cloud Handle Enterprise IT? Amazon Stretches Elastic Computer Cloud For more stories on this topic: The SaaS... [ Read more on www.internetnews.com ]

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