Global e-commerce sales a wake up call to traditional ISVs

China’s e-commerce sales grew more than 130% in 2011 alone, confirming a broad worldwide growth in business-to-consumer e-commerce sales that will pass the 1 trillion euro ($1.25 trillion) mark by 2013 according to new industry reports.

This has profound implications for international ISVs who have not yet deployed a SaaS version of their on-premise software.

By 2013, there will be close to 3.5 billion Internet users, an increase over nearly 1.3 billion over 2012 levels (which number 2.2 billion). By 2013, web usage over a mobile phone is set to overtake activity on a laptop or desktop. Plus, new incoming HTML5 standards promise to turn a web browser into something resembling a operating system, which will open the door to a new flood of web applications. If an ISV has not yet internet-enabled one of its core products it may open the door to competitors even if the rival product is inferior to the on-premise version of the offline ISV.

The reports mentioned earlier indicated that the United States remains the world’s single biggest e-commerce market followed by the UK and Japan. But with datacenter growth exploding in places like Singapore, expect to see Asian markets becoming more prominent in these worldwide statistics.

“In terms of regions, Europe is currently the largest e-commerce market in the world, according to a separate report released recently by the European Multi-channel and Online Trade Association, which said European online business-to-consumer sales posted 19% growth in 2011 to reach an estimated $307 billion, surpassing North America at $297 billion,” said Internet Retailer.

The growth in Internet Usage and online shopping thus represents both a threat and an opportunity for traditional ISVs who are adopting a wait and see attitude to the cloud. With application development now spreading around the world, there is now more competition than ever to release products more quickly and efficiently to a global audience.

“The future of e-retail is global and with the inevitable slowing of growth in several major markets in the likes of North America and Europe, it is important for businesses to understand where the future opportunities will be,” said Internet Retailer.

“Worldwide, we are increasingly seeing trust and confidence in purchasing online growing and government and private initiatives brought in to support the development of the global digital economy.” Online is now becoming an integral part of any country’s economy and should be considered so.”

Cloud computing, mobile computing and the requirement to track customer usage is forcing many CIOs to consider a cloud-delivery model from a remote web hosting provider, including the recent release of the Virtual Datacentre from Virtual Internet

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