3 great advantages of cloud-based e-commerce

As more companies look to re-platform their e-commerce, we’ve seen a lot of companies having to decide whether or not they should host their platform themselves, or if they should rely on cloud-based hosting. What should you choose?

What is cloud-based hosting?

If you’re not in the know, cloud-based hosting simply refers to a particular method of platform data management. When I say data, I mean things like product and customer information, promotional content, and inventory.

When you have an e-commerce platform, you can either choose to manage all of this data and information internally, or you can do it externally. A lot of companies offer cloud-based hosting services, which means that they’re responsible for the security and management of all things related to your online business.

The 3 key advantages of storing data in the cloud

Switching to a cloud-based hosting method is highly beneficial. In fact, it’s representative of where e-commerce is going in the future.

  1. Enhanced security. When your platform manages valuable information, it’s best to prepare yourself with updated security measures. Leveraging a cloud-based platform leaves this to the professionals and ensures your website’s security. Most importantly, it ensures the security of your customers.
  2. Reduced cost. A lot of the companies offering hosting services do so at a price. While this is a recurring cost, it is much lower than the potential costs of maintaining the platform internally.
  3. Care-free reliability. Of course, for these companies to charge you a rate at all implies something powerful. They are taking on the responsibility of effectively and carefully managing your website’s hosting, ensuring its success into the future. This gives you the peace of mind needed to focus on sales and other aspects of your business.

These are some of the great advantages of using this kind of hosting method, but there are many more to learn about as well. At the end of the day, the most important advantage of this kind of hosting is that it makes your company ready for scale. If you’re going to spend all of the time and resources to re-platform to a cloud-based e-commerce, then you need to make sure that it’s ready to support a huge increase in website traffic and purchases. The last thing you want is a site crash or loss of information just when things are growing tremendously.

Enhanced security

But let’s look more into why cloud-based hosting is inherently more secure than other legacy systems. While legacy systems can be effective, they were often implemented before hacking and DDoS attacks were really a big issue.

Cloud-based service providers combat these threats by offering multi-layered security for your data. With the heightened infrastructure these providers often have, you can expect your data centers to be protected by “high fences, barbed wire, concrete barriers, live guards, and security cameras” on every wall.

These providers keep a high level of control over who authorize access to the data. They store the data off-site, so employees and vendors can’t access it. In short, the fewer humans there are that can control the data, the less risk there is. Funny how that is.

Best of all, when you entrust your data to a cloud service provider, you see the benefit of having that data audited on a yearly basis. Essentially, there will be no surprises as far as your data is concerned, something that legacy systems simply do not require.

Reduced cost

Now let’s get more into the cost-benefit comparison. Recently, at least 30-40% of companies have moved into the cloud and use it to store their data. Of course, each company within this large percentage had to undergo a detailed Total Cost of Ownership analysis in order to safely make this decision.

Going with cloud-based can save you a lot of money in terms of the implementation and upkeep of the service. With this kind of hosting, you don’t need to use your internal resources to set up the system, and more than often there is less of a wait time between starting the roll-out process and actually being able to use your new system. Aside from that, you don’t need to spend tons of money on extra hardware, support staff, server rooms, rent, and utilities.

While there are plethora of cost benefits, I will admit it can largely depend on your type of business, and what kind of infrastructure you already have in place. While the security of the cloud is unparalleled, it may just not be the right investment for you right now. Since there’s no one-size-fits-all solution, check out this detailed list of cloud-based features and advice to make the decision easier.

Care-free reliability

So now you may be thinking: “even if we choose to host on the cloud, how can we be assured that it’s truly reliable?” In terms of reliability, the best thing to remember is that with cloud-based hosting, you are now backed by an entire company. This enables you to truly maximize service to your customers, since you can focus even more of your attention on them directly. With this method of hosting, you minimize the likelihood that customers can’t find what they’re looking for.

With more attention on your customers than ever before, and more customer satisfaction overall, you can also expect to enjoy improvements in your company’s reputation, and the subsequent business longevity that is sure to follow. For all of these reasons and more, make sure you don’t miss the opportunity to switch your online business over to a cloud-based hosting method.

Explore the cloud with Luminos Labs


Luminos Labs is one of the top Episerver implementation partners. In fact, we’re named Episerver’s Digital Experience Cloud Partner of the Year in North America. Notice the cloud? Yes, it also leverages the cloud, and it’s one of the best cloud options on the market. Our teams across the world help companies implement the platform efficiently and effectively. We also consult with the client to integrate valuable 3rd party systems – like OrderDynamics and inRiver – seamlessly into the platform.

Find out what Luminos can do for your business. We work with clients of varying sizes and industries, so we’ve got the experience to find the solutions you need. All initial consultations are free of charge, and if now just isn’t the right time, then please feel free to subscribe to our weekly newsletter for more e-commerce updates, trends, and announcements.