Indian eCommerce – Focus shifts to Customer Loyalty / Spend

June 23rd, 2016 Comments off

eCommerce India Customer is KingIndian Internet / eCommerce Companies are focusing on Consumer Loyalty / Spend and Retention, as opposed to primary focus on GMV (Gross Merchandise Value) earlier. We believe this may be a function of limited availability of capital, leading companies to focus on cash generation. Post government regulations that curtailed discounts, companies seem to have done away with the same; most discounts being seen online are being offered by sellers/brands themselves. Amazon has established clear Lead on Website and narrowing the lead with Flipkart on Mobile App.

Customer recall, retention and loyalty are key metrics monitored by companies now, as opposed to an overwhelming focus on GMV earlier. While standard MAUs and app installs are also tracked, orders from repeat customers, and frequency of ordering Read the Full Article

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How World moved away from Standalone Servers to Cloud IaaS ?

June 11th, 2016 Comments off

Birth Rise of Cloud ServicesBefore wide-spread server virtualization (mid 2000s), corporate IT departments would order a server, wait days or weeks for it to be delivered, install an operating system (usually Windows Server) and then run that server, in support of one application or one part of an application. A significant issue in this pre-virtualization world was maximizing server compute resource utilization by properly matching a server’s compute resources with the necessary computing power needed for an application. Many times, servers would only be needed for part of computing resource, as the hardware needed to be sized for “peak” load. This led to significant inefficiencies in hardware, where as little as 5% of a server’s resource was used by a single application.

Then came server virtualization. Virtualization “slices up” server compute resources to where multiple applications can use the resources of one server, drastically increasing utilization. Each “slice” of a server’s compute resources Read the Full Article

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Baidu monetized Maps Platform with Local Ads before Google Maps

May 27th, 2016 Comments off

Baidu is the biggest search engine in China. Searching on Baidu.com or Baidu Mobile App is very easy and contains a great amount of content. According to Baidu, over 10% of mobile Baidu search is for local services, and Mobile Baidu has MAU of 630 mn.

Baidu’s founding team believed then that developing bleeding edge Internet applications is the only way to survive and grow. Thus they developed their own mapping platform – Baidu Maps. As Baidu Map is equipped with search nearby functions, more and more users are using it as a local service discovery channel (Local Express) as they can find out the location and distance of service providers and navigate easily. This type of discovery also has a high conversion ratio Read the Full Article

India E-Commerce Growth Spilling into Ecosystem

March 26th, 2016 Comments off

India eCommerce ecosystemThe growth in e-commerce in India is also giving a boost to a wide array of players that are directly or indirectly part of the e-commerce ecosystem. These include manufacturers of packaging material, 3PL (third-party logistics) providers that provide tailor-made solutions for e-commerce, IT companies that help retailers in transitioning from offline to online or provide digital marketing / data analytics services to e-commerce players and traditional media companies that are benefiting from the rising advertising spending of Internet businesses.

Logistics is where the promise of online gets the offline reality check. The challenges of catering to geographically diverse customers and an inadequate and underdeveloped logistics infrastructure are further compounded by complex tax regulations. Given these complexities, some e-commerce players have built inhouse logistics companies (e.g., E-Kart of Flipkart and Amazon Logistics of Amazon) for superior Read the Full Article

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Largest OpenStack Cloud Platform Deployments

March 15th, 2016 Comments off

Largest OpenStack DeploymentsOpenStack is a Free and Open Source Cloud Computing platform catering to the Infrastructure as a Service [IaaS] AT&T will likely become the largest OpenStack environment in the world, as they expect to build out their private cloud to 500k nodes (servers) and span across hundreds of data centers. AT&T hopes to run every call through its OpenStack infrastructure by 2020. They expect to have the first 60 data centers up and running by the end of 2015. AT&T evaluated Red Hat, VMware and HP, but eventually the decision came between Mirantis and Red Hat.

By March 2015, all of PayPal’s front and mid-tier was running on OpenStack, and 20% of eBay.com was running on OpenStack. In addition, 100% of development Read the Full Article

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Indians Buy 100 Mn Smartphones in 2015

March 3rd, 2016 Comments off

SmartPhone Shipments in IndiaAs per IDC, smartphone shipments in India grew 15% yoy to reach 26mn units in 4Q15, taking the total 2015 shipment count to 104mn units (+29% yoy). The yoy shipment momentum slowed in 4Q15 as sales via offline channel (which comprises the bulk of smartphone sales) were sluggish. 4G LTE enabled Smartphone volume has picked up significantly. We believe this may be due to increased vendor focus on the online sales channel (driven by online mega sales push by leading Indian e-tailers during the festive season in Oct-Nov) which saw increased competition from local / Chinese vendors alike and heavy discounts from e-commerce players.

In terms of market share, Samsung continued to lead the market with a 27% share (helped by the success of its J-series line-up), followed by Micromax (which witnessed Read the Full Article

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