Research Firm Cites IT Hosting As Key SMB E-Commerce Equalizer to Compete With Big Businesses

The Planet, now the world’s largest privately held dedicated hosting company, today announced the availability of a new Stratecast Partners report that highlights the emerging requirements for small- and medium-size businesses (SMBs) to succeed at increasing e-commerce revenues while reducing IT costs. The white paper underscores how Web hosting, such as The Planet’s carrier-grade IT hosting infrastructure, provides SMBs with affordable next-generation functionality, increased security and performance to compete effectively against larger rivals with deeper pockets. Stratecast is a division of industry research firm Frost & Sullivan.

The Stratecast white paper, How SMBs Can Increase eCommerce Revenue and Decrease IT Costs, describes next-generation e-commerce trends and Web site functionality necessary to deliver the optimal online shopping experience. The report stresses the importance of using world-class Internet-connected data centers to ensure advanced functionality — including streaming video and Internet voice communications — is delivered without performance and security glitches that could drive customers to competitors’ Web sites.

“Online shopper expectations continue to raise the bar for businesses that engage in e-commerce, which requires greater functionality,” said The Planet’s Vice President of Marketing Steve Kahan. “The Stratecast report recommends that small- and medium-sized businesses outsource the IT infrastructure required to support this enhanced shopping experience through hosting providers. The Planet’s world-class data centers and redundant high-performance networks deliver next-generation e-commerce functionality at an affordable monthly cost. It’s a critical advantage that allows our customers to compete effectively against larger online retailers with extensive technology and financial resources.”

Stratecast White Paper Highlights

According to Stratecast, online shoppers increasingly demand a richer experience, such as 360-degree product views, layered informational screens and up-front alerts on product availability that more closely mimic shopping in-person in a retail store. To create an even more distinctive online shopping environment, the report also recommends enhanced features, such as streaming video, live chat that incorporates voice-over-IP communications and personalized sales assistance for high-value customers.

The Stratecast paper notes that next-generation functionality requires an IT infrastructure capable of delivering the performance to ensure each visitor enjoys a seamless shopping experience. If functionality does not perform to its potential, the net result is that shoppers will leave the site and never return. To avoid this scenario, the report recommends having the following e-commerce infrastructure components in place:

Redundant and highly scalable Web servers — to accommodate peak traffic and minimize the risk of server downtime

Physical and cyber security — to protect the e-commerce platform and customers’ personal and financial information from disruption and theft

Wideband and redundant access between the data center and the Internet — to provide sufficient bandwidth to prevent access congestion and ensure shoppers experience rapid response times

Data center utilities — to ensure air conditioning, heating and electrical power that are sufficient to prevent IT infrastructure failure and downtime

Around-the-clock administration — to provide sufficient technical support that ensures all systems operate flawlessly

The report suggests that IT infrastructure costs do not have to present a barrier for SMBs if companies use a high-quality Web hosting provider. Based on the research firm’s analysis, SMBs that outsource their IT infrastructure can reduce their e-commerce technology costs by up to 75 percent compared to the cost of owning and operating IT components internally.

To download the complete Stratecast white paper, please visit:

http://www.theplanet.com/forms/register.asp?type=IERDITC_WP&utm_ campaign=BPHOWPRB040307 (Due to its length, this URL may need to be copied/pasted into your Internet browser’s address field. Remove the extra space if one exists.)

About Stratecast

Frost & Sullivan’s Stratecast practice directly assists clients in achieving their strategic objectives by providing critical and objective insights. Stratecast’s industry analysts and market experts provide the communications industry with market consulting and tactical strategic forecasting. This market information and industry research helps senior executives make critical business, technology, product, partnership, and tactical strategy decisions. Our custom consulting, analyst availability, and market subscriptions provides your firm with winning business growth strategies.

About The Planet

The Planet is the leading provider of On Demand IT Infrastructure solutions, hosting more than 22,000 small- and medium-size businesses and 2.8 million Web sites worldwide. By offering the best choice of servers, software tools and world-class support, backed by state-of-the-art facilities and unmatched network connectivity, The Planet helps turn information technology into a powerful competitive advantage that enables customers to successfully grow their businesses. For additional information, visit www.theplanet.com.