You can tell that a descriptive term, used in technical architectural implementation and design, has reached mainstream when it is featured in television commercials.
In researching the term, you will find references to several primary terms:
• Cloud Computing
• Software-as-a-Service (SaaS)
• Infrastructure-as-a-Service (IaaS)
• Platform-as-a-Service (PaaS)
These terms, while interesting discussions in and of themselves, are (simply) references to implementation methodologies.
So, what then, is the importance of the “cloud” to a software company building a payment application? What are they actually referencing when expressing the desire for a “cloud-based” solution?
While the specifics of implementation, and need, vary by the software company the core need can be summed up as a demand for “logic”. At its simplest, “logic” is taking the highly complex and breaking it down into simple, re-usable components that can be consumed by the software company. The desire for, and demand for, the “cloud” is the demand for simple solutions that solve problems.
Consider a specific example of Payment Status Monitoring…
In general, software companies are plagued by an inability to determine the status of a transaction after submission. Payment Status Monitoring enables intelligence to be built into the software company solution based on the actual status of the transaction – saving software companies time and decreasing support costs related to integrated payments.
Could a software company build this monitoring into their own application? If the data were available and they could ensure they were continuously synced with the system of record…it is possible, but incredibly complex. Instead if they can simply make a call to a service, a service hosted in the cloud, their time and effort for integration is decreased and their customer experience is supplemented.
Software companies desiring to integrate commerce capability also expect to call upon logic provided to them through the tools they are provided to build complex workflows. Further demonstration that an “API strategy” (exposing your current platforms with new tools) is not sufficient for the requirements of the Platform era.
About the Author:
Peter Osberg is the Sr. Vice President, Business Development & Marketing for IP Commerce. With extensive senior-level experience in highly competitive, multi-sided markets, Peter is a well-established entrepreneur with a proven ability to plan, execute and administer successful sales and business development initiatives.