With advances in technology, computers are able to communicate more with other devices, over several networks, such as the internet; as a result many consumers and business are realizing the potential advantages of electronic business models. (1) Consumers use networks, such as the internet, to identify sellers, evaluate products and services, and compare prices while businesses use networks for production, to streamline procurement processes, to reach new customers, and for internal operations. (1) In such a way the use of information systems and the internet may revolutionize how business is conducted.

Electronic commerce, or e-commerce, provides a quick and easy way of exchanging goods and services on a regional and global scale. (2) In 2007, it was estimated that online retail generated $175 billion in revenue in America alone. (2) Business to consumer transactions (B2C) are seen in industries including travel services, consumer electronics, books and media distribution, and sports and fitness. (2) It seems imperative for traditional companies to integrate e-bussiness models to survive in our current technology driven economy. Many industries are likely to benefit from the growth in e-commerce. Amongst these include online travel services, such as Expedia, online retailers, such as Amazon, consumer electronics, such as Sony, financial transaction services, such as PayPal, shipping services, such as FedEx, and e-commerce software companies, such as GSI Commerce. (2)

GSI Commerce, or GSIC, is a global e-commerce outsourcing firm for retailors that wish to sell over the internet but do not yet have online presence. (3) Up-front costs of creating a website in house may be too high for some companies, thus outsourcing is essential. GSI provides basic software to run a client’s website, as well as taking care of shipping, logistics, and customer service and in return collects a portion of the company’s profits from the city. (3) Thus, such companies could aide small business survival in the current economy, while profiting themselves.

1)      http://www.census.gov/epcd/www/ebusines.htm

2)      http://www.wikinvest.com/concept/E-Commerce

3)      http://www.wikinvest.com/wiki/GSI_Commerce_(GSIC)

Cloud Computing

Many companies, cloud costumers, are taking advantage of cloud computing, Eli Lilly is a large pharmaceutical company that recently moved its entire Research and Development environment to a cloud, resulting in reduced costs and global access to Research and Development applications. (1) Cloud computing has many advantages as well as disadvantages. Among the advantages includes low costs, efficient resource sharing, consumption based on costs, and dynamic resource availability, while disadvantages include compliance and regulatory laws, lack or reliability and availability, and security concerns. (1) Three principles of information security include confidentiality, integrity, and availability; costumers are concerned with preventing unauthorized disclosure, preserving information integrity, and ensuring information is available when needed, respectively. (1)

Therefore it is imperative for customers to access security risk before choosing a cloud vendor. Costumers should find out as much as possible about the individuals that have access to their data and ensure that providers are subject to external audits and certifications. (2) Costumers should also ask vendors where their data is stored and ensure that they obey local jurisdiction. (2) It is also important that vendors segregate a costumer’s data from that of other customers and that encryption schemes are created and have withstood testing. (2) Vendors should also ensure recovery of data in the case of disasters and be able to offer long term viability, meaning that data will be available in the unfortunate event that a vendor goes broke or is acquired by another company. (2)

In response to security threats, a non-profit Cloud Security Alliance, CSA, was created to promoted best practices using cloud computing and spread education. (3) Objectives of the CSA include striving for a common level of understanding between customers and providers, promoting best practices research, creating educational programs addressing proper use of cloud computing and security issues, and creating a list of issues and guidelines for cloud security assurance. (3) While cloud computing can be beneficial for customers, such as Eli Lilly, it is the responsibility of vendors to offer solutions to security threats and the responsibility of customers to investigate vendors before entrusting their information to cloud vendors.

1)      http://www.ists.dartmouth.edu/docs/HannaCloudComputingv2.pdf

2)      http://www.infoworld.com/d/security-central/gartner-seven-cloud-computing-security-risks-853?page=0,1

3)      http://www.cloudsecurityalliance.org/About.html