What Every Exec Needs To Know About The Future of eCommerce Technology | Forrester Blogs

Mobile e-commerce is going to happen in the cloud, or not at all, one might conclude from some Forrester Research findings.

On average, 8.85 different hosts were involved in delivering an e-ommerce transaction this year in the United States, and it was even slightly higher for German eCommerce transactions.

This year, nearly 20 percent of e-commerce transactions across more than 200 sites included at least one piece of content served by the Amazon Elastic Compute Cloud (Amazon EC2) solution. In other words, 20 percent of e-commerce transactions already rely on cloud services provided by Amazon alone.

And appetite for such solutions seems to be growing. About 54 percent of executives are interested in moving to e-commerce solutions based on software-as-a-service.

What Every Exec Needs To Know About The Future of eCommerce Technology | Forrester Blogs:

Why U.S. Mobile Operators Will Not Likely Replicate the Japanese Experience

In Japan, operators have taken control of the whole content, supply and delivery chain, making it easy for people to adapt and use mobile data without any complications, Ericsson Consumer Lab Head Henrik Palsson says.

'They have integrated services, supervised the network to see that everything works and tested applications and the interoperability among networks and operators. They have taken full responsibility for the whole chain, something few operators in other markets have done."

That isn't going to happen in the U.S. market, where the ecosystem is, and will remain, much more fragmented.

Ericsson: Tailoring to the mass market

Clearwire to Launch Prepaid Services

Clearwire plans to launch a new prepaid service for users of its WiMAX fourth-generation (4G) network. The apparent effort likely will attempt to entice more-casual users to buy service before competing HSPA+ and Long Term Evolution networks launch and basically eradicate the bandwidth advantage Clearwire has had since 2008.

http://sec.gov/Archives/edgar/data/1442505/000095012310081459/v56755e8vk.htm

U.S. Telecom Industry Revenue Flat Through 2015

If you run a publicly-traded company in the telecommunications industry, this revenue forecast by Atlantic-ACM will cause heartburn. 


Between 2009 and 2015, revenue will be flat, in fact declining a bit. 


If you run a public company, you are judged on revenue growth. That inescapable vice suggests just one thing: massive financial trouble ahead for industry players or significant shifts of market share that allow some companies to keep growing at the expense of others. 


Most companies will run hard just to stay in place. But it seems unlikely most companies can do that on a long-term basis. Public companies must grow, or get punished. Public companies that don't grow will be acquired. More than anything else, industry lack of real growth is going to lead to relatively-massive consolidation. 


To be sure, most companies are trying to find other new revenue streams that do not simply take existing market share from other competitors, but actually add new incremental revenue. In all likelihood, those streams will be quite small for a while, though, and likely will not be significant enough to get the industry out of its "flat revenue" jam. 

Video Advertising: Will Pareto Distribution Hold?

Video advertising might be on the cusp of a major advance, at least for some ad networks and a few applications and sites, such as Hulu or YouTube.

What is not likely is that much of the revenue will be gained by smaller firms, if typical market dynamics hold. What one would have to expect is that 20 percent or fewer of the providers will get 80 percent of the video ad revenue.

That Pareto distribution, commonly thought of as the "80/20" rule, occurs normally in business and in many natural processes as well.

Not many markets, if any, ever escape a stable structure of that sort. Video advertising likely will fit into that pattern as well.

The Online Video Debate

Blockbuster Bankruptcy Coming

Blockbuster has told major Hollywood studios that it’s preparing to file for bankruptcy next month despite several pushes to expand into online and kiosk services, the Los Angeles Times reports.

Blockbuster could file for bankruptcy as early as mid-September.

LA Times: Blockbuster preps for bankruptcy after Netflix, Redbox win

Targeted Display and Video Advertising Will Grow 60% in 2011

Online ad spending growth is being propped up by targeted display and streaming video advertising, says Borrell Associates. Both targeted display ad spending and streaming video ad spending will grow by around 60 percent in 2011. In turn, spending on less-targeted ads such as run-of-site display and national paid search is poised to fall.

"There really is unparalleled ability in the past year, year-and-a-half, to be able to deliver ads targeted to that one person as opposed to whom you think might be visiting a site," says Gordon Borrell, Borell Associates CEO.

"That's peeling off a lot of the growth from run-of-site banner ads," he says.

According to Borrell, targeted display advertising will hit $10.9 billion in total in 2011. Local targeted advertising will reach $2.3 billion, while national is expected to hit $8.6 billion, the company reported. And, while national targeted advertising will grow almost 50 percent, local targeted ads will grow at an even higher rate.

"They're not buying mass anymore; they're buying niche," said Borrell.

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