Network Computingwww.networkcomputing.com

Building E-Commerce

December 15, 1998

Additionally, most will specialize in certain software brands, especially when it comes to e-commerce. Hereís where you need to be careful. Many commerce-oriented hosting specialists will implement a single brand of commerce server software and attempt to customize it to fit each customerís needs. For small shops this isnít a problem; in fact itís usually an advantage. But for larger companies that need to consider special circumstances and massive amounts of legacy software, such an approach could be constricting.

Find out as much as you can about the software your potential hosting service uses. Will it support conversions into open file formats? What back-end database is employed, and can it export your data effectively? What are the companyís policies on customers wanting to move on? If the company boasts that it can handle any kind of software brand to fit your situation, smile and ask to see examples of this in their customer base.

Electronic payment is another thorny issue. Businesses have long relied on EDI/EFT, which usually requires a third-party clearinghouse, called a VAN (value-added network). If business-to-business commerce is what youíre after, then finding a hosting service that understands EDI is crucial because itís still the accepted standard. Many businesses, both large and small, specialize in supporting both you and your outside partners with EDI services, but thatís usually an added cost above and beyond hosting.

For storefront commerce users, the main issue is credit-card payments. Sometimes these services are a separate software application all their own; sometimes theyíre a module in an overall e-commerce server software package; and sometimes the hosting service simply bumps them out to yet another third-party. Some companies specialize in taking any kind of electronic payment from the customer and then dishing it back to the vendor in whatever format required.

As you can see, the arguments for and against outside hosting are many and complicated. The core advantages can be summed up as follows:

1. Minimizing WAN bandwidth and network hardware headaches
2. Capitalizing on the experience of the hosting serviceís e-commerce experts
3. Having much of the business plumbing required for e-commerce in place
4. Minimizing the need for additional IT staff and hardware to maintain 24-hour up-time and quality of service for customers and business partners.

1. Removes you by at least one layer from both a key network element as well as a core business mechanism; should something go wrong, youíre reliant on these folks to keep your business running
2. Might lock you into a single vendorís e-commerce software solution
3. Might similarly lock you into a single vendor or bankís e-commerce payment scheme