Cloud Computing and point of different in Digital River Business Model

It is very interesting met e-commerce company that provides Software as a Service (SaaS) cloud computing as their main business model. But how many of you know the technology itself?  In my opinion by knowing what is the technology that DR using will be helping marketers to promote their product. Thus, this blog attempt to helping us understands deep about DR’s business process.

                According to Wikipedia, SaaS is one of many service of cloud computing . You can see on that Wikipedia mention 9 types of public cloud computing, when in theoretically we can define it’s into 3 categories: IaaS, PaaS, and SaaS (as seen on figure below).

Source: http://cioresearchcenter.com/2010/12/107/

                By understanding the SaaS, product that offering by DR, we realize that actually client such as Microsoft, Adobe, and AE games  are seeking to build their own website but doesn’t want to handle all technical problem. The decision to Buy, Build or Purchase information system itself is not easy for companies such as Microsoft, Adobe, or AE games; however DR bundle the SaaS service with attractive feature, “Digital River World Payment”, as competitive advantage and serve as point of different to other SaaS.  I think that what makes DR big is “DR World Payment”; Mr. Mori explanation it is now approximately can support and help people transaction with 200 different banking or financial institutions.

                Did you know it is not easy to handle huge data transaction and customers’ data with big client such as Microsoft, Adobe or AE games at the same times? Well practically it needs high investment and all high technical skill to make the database reliable.  One case that face DR in 2010, according to Wikipedia,  is due to security breach of customers data; DR sue against 19 year old hacker from New York Man for  steal nearly 200,000 data of DR’s customers and attempt to sell it to a Colorado marketing firm for $500,000. This might be interesting for us of how important information is; information nowadays became something important and valuable for marketers, thus DR took apart into this e-business by handling information and makes profit from those data transaction.

Last post to understand the cloud computing, the different of IaaS, PaaS, and SaaS might be found in the video below.

http://en.wikipedia.org/wiki/Digital_River

http://en.wikipedia.org/wiki/Cloud_computing

http://www.darkreading.com/security/attacks-breaches/225402000/index.html

http://www.startribune.com/business/95584209.html?refer=y

http://cioresearchcenter.com/2010/12/107/