Satish Agrawal

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Related Topics: Cloud Computing


Migrating E-Commerce Applications to the Cloud

Business and technology drivers for CTOs

The e-commerce industry is experiencing a sudden spurt in their sales in India and thus we can see an explosion in the e-commerce business in near future. The e-retail industry in India is expected to touch USD 70 billion revenue by 2020. It’s a huge market and certainly would be a game changer in the way the IT industry is perceived in India.  Indian IT industry would no longer be just a back office for outsourced software development work for US companies. This would certainly be a big push for MNCs such as Amazon, Google and Microsoft to re-think about their existing business strategies around India. Probably the technology centers they have in India would be given business targets and would not be treated just as cost-lowering technology centers.

If this happens and will happen as we can see big deals happening in the Indian e-commerce Industry, CTOs would be forced to think of migrating their current application stack from traditional hosting environments to the more sophisticated cloud infrastructure and digital commerce platforms. Amazon cloud popularly known as AWS has already been into the India market pushing its sales through partner ecosystem and is seeing a huge leap in its retail sales. Smaller e-commerce companies having couple of servers and few hundred customers are re-thinking of migrating to AWS as they have started feeling issues such as performance bottleneck due to increasing load, more revenue leakage in systems maintenance and higher turnaround time in trouble shooting their infrastructures.

I have been taking feedback of the market through various channels and here is my finding:

Even if this sounds like there are good reasons for CTOs to make a move from traditional hosting provider to the cloud, in India, we are still not seeing datacenters from reputed cloud providers. The reason could be many to list a few as follow:

  1. India doesn't have stringent cyber laws
  2. Hot and dry weather may not be suitable for DCs
  3. India is still maturing in terms of skills to build and operate DCs
  4. India needs more capabilities in providing physical security provisions
  5. India needs better computing infrastructure in terms of CNS (India needs high speed connectivity)

I happened to talk to CTOs of Indian startups who are in the business of e-commerce and most of them felt that points 1 and 5 above look like most obvious reasons why companies such as AWS has not dared to invest in setting up datacenters in India. However, most of them also felt that not having a DC in India doesn’t stop them thinking migrating to AWS because India has the nearest DC located in Singapore and people who have already migrated to AWS are getting pretty good results in terms of cost and performance.

So, in short, we can see a huge change in the paradigm of managing e-retail applications in India in near future. We can see more and more start-up companies choosing cloud preferably AWS for their businesses and more and more migrations from existing e-commerce companies from traditional hosting providers to cloud especially AWS due to their aggressive GTM plan for India.

More Stories By Satish Agrawal

Satish Agrawal is a parallel entrepreneur. He is co-founder and COO of Lantana Cloud Inc. a Silicon Valley based start-up company specializing in optimizing the performance and cost of AWS hosted applications. He is also co-founder and director of a startup in the domain of healthcare management. Satish also heads cloud computing practice at e-Zest Solutions Ltd. a Pune based company providing cutting edge solutions to enterprises in the domain of Cloud Computing, Mobility and BI.