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A Forrester Consulting
Thought Leadership Paper
Commissioned By Four51
May 2015
Build Cloud B2B
eCommerce Applications
On Your Terms
PaaS Combines Speed And Agility
With The Customization And
Integration Businesses Need
Table Of Contents
Executive Summary ...........................................................................................1
Online Selling Flips B2B Customer Engagement On Its Head, And
Developers Are Central To The Transformation............................................2
Plans Signal A Rise In Cloud-Based Development, With PaaS Poised To
See The Largest Increase..................................................................................3
Existing B2B eCommerce Implementations Fall Short Of Developer And
Business Needs..................................................................................................5
PaaS Solutions Provide A Modern Approach To B2B eCommerce............7
Key Recommendations ...................................................................................10
Appendix A: Methodology ..............................................................................11
Appendix B: Endnotes.....................................................................................11
ABOUT FORRESTER CONSULTING
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© 2016, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited.
Information is based on best available resources. Opinions reflect judgment at the time and are subject to
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, Technographics®
, Forrester Wave, RoleView, TechRadar, and Total Economic Impact
are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective
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1
Executive Summary
Over the past twenty years, online consumer shopping has
become well established, but business buyers have been
slower to migrate. But the wait for the online business buyer
is coming to an end: In the US alone, the B2B eCommerce
market is now on a steady march toward $1 trillion by 2020.
With the rise in prominence of the online business buyer,
having a strong eCommerce presence is no longer a luxury
for B2B sellers. eCommerce systems can’t simply be “bolted
on” to existing businesses, however. They must be
integrated into sales and partner channels and customized
to accommodate unique needs. No one understands this
challenge more than the developers working to build and
deploy B2B eCommerce solutions.
In March 2016, Four51 commissioned Forrester Consulting
to evaluate how B2B eCommerce systems fit into the
broader digital landscape, and what platform functionality
developers require to deliver eCommerce capabilities within
modern websites and apps. Four51 also sought to uncover
developers’ perceptions of various approaches to B2B
eCommerce delivery. Forrester structured a hypothesis to
test the assertion that modern developers who work with
B2B eCommerce solutions will gravitate toward cloud-
hosted platforms over time due to their needs for
comprehensive, customizable, and quick-to-implement
capabilities and workflows.
By conducting a survey of 150 software development and
architecture professionals in the United States with recent
experience developing B2B eCommerce solutions,
Forrester found that current solutions fall far short of needs,
and that Platform-as-a-Service (PaaS)-based solutions are
an increasingly popular option for developers seeking
flexible, quick-to-deploy systems.
KEY FINDINGS
Forrester’s study yielded 5 key findings:
› Current B2B eCommerce deployments disappoint
developers. An average of 80% of the developers we
surveyed rated one of thirteen B2B eCommerce system
qualities we asked about as important or critically
important, yet an average of only 36% told us their current
solution was excellent at delivering the same qualities.
Among the qualities with the biggest deltas between
requirements and performance are completeness of
feature sets, mobile capabilities, breadth of integration
options, and speed of deployment.
› Lack of integrations and customizations limit B2B
eCommerce success. Nearly half of developers we
surveyed cited a lack of necessary integrations with other
technologies and capabilities as a top inhibitor of
successful B2B eCommerce development, thereby
propelling it to the No. 1 spot. Ranking closely behind
were the lack of customization to business needs and
difficulty integrating with other back end systems.
› On-premise and SaaS solutions disappoint
developers. A majority of developers are frustrated with
the challenges of on-premise eCommerce environments –
including cost of acquisition/implementation and
maintenance, time required for deployment and
maintenance, and procurement headaches. Similarly, all
respondents ranked all potential SaaS drawbacks – such
as inadequate integrations, limits on developing for
certain channels, and poor adaptability to business
processes and needs – as a major or moderate issue.
› PaaS-based systems are posed for the largest
increase in B2B eCommerce deployments. Comfort
with multitenant cloud services has risen steeply over the
past two years, and B2B eCommerce developers now
report plans to decrease the share of projects built on-
premise and increase those developed in the cloud. The
rate of increase in planned PaaS-based deployments
over the next two years is twice that of the increase in
planned SaaS-based deployments. Furthermore,
developers told us they are significantly more comfortable
developing in a PaaS environment than they are in a
SaaS environment, while the difference in their levels of
comfort in PaaS and on-premise environments is
statistically insignificant.
› Customization is critical for B2B eCommerce
systems. An average of 81% of developers described
each of the six customization elements we asked about –
ranging from user interface to integration with commercial
applications or RDBMSes to unique business processes –
as important or critically important.
Platform-as-a-Service (PaaS)-based solutions
are an increasingly popular option for
developers seeking flexible, quick-to-deploy
systems.
2
Online Selling Flips B2B Customer
Engagement On Its Head, And
Developers Are Central To The
Transformation
Business buyers are consumers, too, and it was only a
matter of time before their technology-driven expectations of
meeting their needs anytime, anywhere, caused
longstanding modes of B2B commerce to yield share to
digital ones. B2B sellers have much to gain from this shift.
Executives surveyed by Forrester cite factors such as
higher loyalty, spend, and profitability as motivators for
shifting business buyers online.
i
Delivering on this new imperative isn’t easy, however, and
business stakeholders aren’t the only ones wrapping their
heads around it. So, too, are members of technical staff
charged with developing, deploying, and evolving the
capabilities to make B2B eCommerce possible. Our study
found that:
› B2B eCommerce is a new world for developers, but
there is growing demand for their skills. Engaging
business buyers in earnest through eCommerce is such a
recent phenomenon that only one-third of the developers
we surveyed (all of whom were required to have
experience on such projects) had B2B eCommerce
experience a mere two years ago. With what Forrester
projects to be volume of over $1 trillion by 2020 – a
compound annual growth rate of 7.7% – the explosion of
B2B eCommerce means that these developers can
expect a healthy workload of deploying and refining such
systems.
ii
› Business and technical initiatives alike drive B2B
eCommerce projects. The developers we surveyed are
generally aligned with the business motivators for
deploying B2B eCommerce systems, with the majority
citing factors such as high rates of repeat business,
reduced costs per order, and competitive pressure as
major drivers. Unsurprisingly, developers are also well-
attuned to the technical factors putting these projects in
the pipeline, too, with at least half of respondents
classifying considerations like system modernization,
mobile initiatives, and systems integrations as having
major sway (see Figure 1).
› Developers have a prominent seat at the table when
evaluating and selecting solutions. Developers are
active participants in the evaluation and selection of B2B
eCommerce solutions. In fact, 58% of the developers we
surveyed said their roles in such activities have increased
recently, a third of whom said they had become much
more involved. The share of developers involved in such
decision-making activities is particularly sharp at customer
organizations (i.e., end user organizations) and partner
organizations (e.g., systems integrators, digital agencies,
and consultants), where 41% and 44% of developers with
FIGURE 1
An Assortment Of Business And Technical Factors
Drive B2B eCommerce Initiatives
Base: 154 US software architecture and development professionals
involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on
behalf of Four51, March 2016
39%
44%
44%
46%
47%
50%
51%
52%
55%
58%
63%
42%
45%
46%
45%
39%
38%
40%
36%
39%
33%
31%
Omnichannel initiatives
Increased loyalty
Lower customer
acquisition/retention costs
Reducing order/manual errors
Higher spend/average
transaction value
Systems integrations
Competitive pressure
Mobile initiatives
Reduction of cost per order
System modernization
Higher rates of repeat/return
business
"To what extent do you believe the
following factors drive the B2B
eCommerce projects you work on?"
Major driver Moderate driver
3
increased involvement call the change major (see Figure
2).
Plans Signal A Rise In Cloud-Based
Development, With PaaS Poised To
See The Largest Increase
When eCommerce first emerged two decades ago, its
impact on business buying was hard to foresee. Even less
apparent were the various development environments such
capabilities could be built and deployed in. In addition to the
established on-premise and Software-as-a-Service (SaaS)
offerings that have permeated the market, developers are
also showing increasing interest in models like Platform-as-
a-Service (PaaS), which offer a hosted set of tools and
services that allow for the development of custom solutions.
Which methods do B2B eCommerce developers prefer
today, and which ones will they turn to in the future? We
found that:
› Cloud-based B2B eCommerce development, led by
PaaS, is on the rise. Old habits (and code bases) die
hard, so it’s no surprise that on-premise deployment
constitutes the largest share of B2B eCommerce
deployments today (28%). Yet, various cloud-based
models add up to nearly double that amount, with a
combined share of 53%. And developers we surveyed are
FIGURE 2
Developers Play An Increasingly Prominent Role In
B2B eCommerce Solution Evaluation And Selection
Base: 50-154 US software architecture and development professionals
involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on behalf
of Four51, March 2016
48%
11%
34%
24%
32%
26%
Somewhat more involved
Much more involved
"To what extent has the role of developers
in the evaluation and selection of B2B
eCommerce solutions changed at your
organization recently?"
Partner organizations
Customer organizations
Vendor organizations
20%
Average of all respondents
38%
FIGURE 3
PaaS Is Posed To See A Large Increase In Its Share Of B2B eCommerce Projects
Not all response options shown
Base: 50-154 US software architecture and development professionals involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016
28%
19% 17% 17%
26%
21% 19% 16%
On -premise Commerce Software-as-a-
Service (SaaS)
Commerce Platform-as-a-
Service (PaaS)
Commerce Infrastructure-as-
a-Service (IaaS)
"Using your best estimate, how much of the code you write for B2B
eCommerce projects is deployed in the following environments today? How
do you expect that to change?"
Currently In two years
Projected change in
total share of
deployments
7% decrease 7% increase 14% increase 1% decrease
4
steadily moving further into the cloud, predicting that 56%
of their deployments will be in the cloud within two years.
PaaS deployments are projected to see the biggest rate
of increase (14%) in their share of B2B eCommerce
projects during the next two years, while SaaS’s projected
rate of increase is half that (7%) and IaaS deployments
are anticipated to decrease slightly. On-premise projects
are slated to see the biggest decrease, with their
prevalence expected to decrease by 7% (see Figure 3).
› Multitenancy is rapidly gaining acceptance.
Multitenant architectures – those which let multiple
customers share the same applications and/or compute
resources – allow service providers to achieve high cost
efficiencies while easing services maintenance and
updates. Yet, despite these solutions’ abilities to provide
improved security when properly configured, early cloud
adopters have often worried about security or
performance issues from “noisy neighbors”.
iii
But those
fears are receding as developers gain hands-on
experience with the cloud. Just two years ago, less than
one-third of these developers were very comfortable with
multitenancy, and an additional 42% registered as
somewhat comfortable. Today, the share of developers
claiming at least some comfort with multitenancy has
grown significantly (from 71% to 88%). What’s more, the
ratio of those who are very comfortable to those who are
somewhat comfortable has been flipped, with a robust
59% claiming the highest level of ease with the
architecture, and the overwhelming majority of this shift
took place just over the past year (see Figure 4).
› Developers now prefer PaaS to other cloud delivery
models. The expected increase in PaaS development
compared to other models can be traced at least in part to
developer preference. When asked about their levels of
comfort developing in a variety of environments, the
developers we surveyed told us that they were
significantly more comfortable with PaaS than with SaaS
or IaaS. In fact, developers’ levels of comfort with PaaS
and on-premise environments are not statistically
different. Developers from partner organizations are
especially comfortable with PaaS environments: 68% of
partner respondents said they were “completely
FIGURE 5
Developers Prefer PaaS To Other Cloud
Environments
Base: 50-154 US software architecture and development professionals
involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on
behalf of Four51, March 2016
44%
56%
59%
61%
59%
46%
50%
66%
72%
76%
30%
66%
68%
62%
70%
Infrastructure-as-a-Service
(IaaS)
Software-as-a-Service
(SaaS)
Platform-as-a-Service
(PaaS)
On premise
Open source
"Generally, how comfortable are you
developing in the following
environments?" (answers of completely)
Partner organizations
Customer organizations
Vendor organizations
68%
Average of all respondents
65%
64%
57%
40%
FIGURE 4
The Rate At Which Developers Embrace
Multitenancy Has Increased Dramatically
“To what degree are you comfortable with
multitenancy, and how has that level of comfort
changed?”
Base: 154 US software architecture and development professionals
involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on
behalf of Four51, March 2016
29%
42%
Two Years Ago
59%
29%
Today
Completely comfortable
Somewhat comfortable
36%
45%
One Year Ago
5
comfortable” with PaaS, compared to 62% who said the
same for on-premise. Customer organizations are
extraordinarily comfortable with open source software
(see Figure 5).
Existing B2B eCommerce
Implementations Fall Short Of
Developer And Business Needs
Deploying a B2B eCommerce solution that meets modern
business is a challenging task. Through our research, we
sought to understand how current B2B eCommerce
solutions meet business requirements and the challenges
developers face in deploying them. We also wanted to know
about the ease with which developers can work with the two
most popular approaches, on-premise and SaaS, which
together account for nearly half of all B2B eCommerce
deployments. We found that the current landscape leaves
much to be desired:
› Most in-place B2B eCommerce solutions don’t meet
developer needs. Businesses demand that their
eCommerce systems be cost efficient, feature-rich, and
differentiated from the competition. Furthermore, such
systems must be quick to deploy and capable of
supporting unique business processes. To accommodate
this list of requirements, developers need solutions that
meet a great deal of criteria. Yet, according to our survey
respondents, traditional solutions aren’t up to par. An
average of 80% of developers rated each of the thirteen
B2B eCommerce solution qualities we asked about as
important or critically important, yet a dismal average of
36% said their current solution is excellent at the same –
a whopping delta of forty-four percentage points (see
Figure 6).
› Subpar integration and customization capabilities
limit success of B2B eCommerce implementations.
The lack of necessary integrations with other technologies
and capabilities ranks as the No. 1 inhibitor of successful
B2B eCommerce workflows among our respondents. Tied
for No. 2 are a lack of customization to business needs
and difficulty integrating with other back end systems.
FIGURE 6
The Performance Of Today’s B2B eCommerce Deployments Fall Far Short Of Needs
Base: 154 US software architecture and development professionals involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016
36%
34%
29%
44%
32%
35%
49%
39%
37%
38%
33%
31%
29%
72%
72%
67%
83%
72%
76%
90%
82%
80%
88%
84%
86%
85%
Customizability of core business processes
Customizability of the solution's user interfaces
Documentation and online training resources
Maintainability
API extensibility
Scalability
Security
Speed/ease of deployment
Breadth of integration options
Cloud deployment capabilities/cloud-readiness
Mobile capabilities
Completeness of feature set
Cost
"How important are the following qualities of B2B eCommerce solutions? How do
you rate your current B2B eCommerce solution's capabilities?")
"This quality is important or critically important for a B2B eCommerce solution"
"Our current B2B eCommerce solution is excellent at this"
Needs vs.
Performance
Delta
56%
55%
51%
50%
43%
43%
41%
41%
40%
39%
38%
38%
36%
6
Difficulty customizing the user experience and extending
support to mobile devices also made the list of top
inhibitors (see Figure 7).
› SaaS solutions don’t accommodate unique business
requirements. While SaaS-based eCommerce solutions
have taken significant market share in the early stages of
firms’ moves to the cloud, we found that the majority of
developers reported a moderate or major issue with each
potential drawback of SaaS, the top of which include
inadequate integrations, limited options for developing for
individual channels (like Web or mobile), and version
centricity (see Figure 8). We ascribe early SaaS success
more to lack of eCommerce PaaS availability than
superior capability, as evidenced by increased PaaS
adoption intentions in light of increased offerings.
› On-premise solutions don’t work with modern
timelines and budgets. Although their honeymoon
phase with SaaS may be waning, developers won’t be
pining for a return to on-premise dominance anytime
soon. We also asked respondents who recently
developed in an on-premise environment what pain points
such projects inflicted, and found a similar average of
58% reporting moderate or major issues across a range
of factors. Cost – of both maintenance/acquisition and
implementation – made the list of top three issues, as did
the burden of applying upgrades and new versions.
Respondents also complained about the time required to
maintain and acquire, implement, and deploy on-premise
solutions, and the headache of dealing with internal
procurement and budgeting processes (see Figure 9).
FIGURE 7
Lack of integration and customization limit the success of B2B eCommerce systems
Base: 154 US software architecture and development professionals involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016
% respondents
placing factor in
Top 5
47%
42%
42%
38%
36%
36%
36%
29%5%
8%
8%
9%
6%
6%
13%
8%
5%
11%
5%
5%
9%
13%
4%
9%
7%
5%
5%
7%
8%
8%
6%
13%
5%
5%
8%
8%
7%
8%
9%
9%
7%
7%
10%
7%
8%
7%
10%
8%
Overemphasis on technology versus strategy
Extending support to new devices like mobile
phones or tablets
Difficulty customizing the user experience
Lack of budget
Insufficient staff expertise
Difficulty integrating with other back end systems
Lack of customization to business needs
Lack of necessary integrations with other
technologies/capabilities
"What are the top inhibitors to successful development of B2B eCommerce
systems?" (Top 8 responses)
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
7
PaaS Solutions Provide A Modern
Approach To B2B eCommerce
With the need for solutions that are not only customized, but
quick to deploy, it’s not surprising that B2B eCommerce
developers plan to ramp up their work with PaaS more than
any other environment. But not all solutions provide the
hallmarks of PaaS’ value proposition, such as API-first
qualities and out-of-the-box support for applications that
support customer and business needs.
What customization elements are most important, what
factors drive PaaS adoption, and what qualities does a
PaaS B2B eCommerce solution need in order to be
successful? The developers we surveyed told us that:
› UI is the top customization need, with integrations
following closely. It’s no wonder that developers want
APIs that clearly separate user interfaces from business
logic. An API-first approach supports custom
development of user interfaces and eases integration with
commercial applications, the two most important elements
of B2B eCommerce customization valued by our
respondents (88% and 85%, respectively). Other
customization wants include integration with RDBMes,
plug-in architectures, access to open source code, and
accommodation of unique business processes. In fact, at
least three-quarters of respondents say any of the
customization components we asked about are important
or critically important in the solutions they seek.
Interestingly, developers at end user customer
organizations generally value customization more than
the partners and vendors that serve them. Although the
strong majority of developers at vendor organizations say
customizations are important, they are comparative
laggards when it comes to the magnitude of that
importance (see Figure 10).
FIGURE 8
SaaS Solutions Are Viewed By Many As Inflexible
Base: 142 US software architecture and development professionals
involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on
behalf of Four51, March 2016
55%
57%
59%
60%
61%
62%
Poor adaptability to
business processes/needs
Limited user interface
options
Limited scaling capabilities
Version centricity
Limits of developing for
individual channels
Inadequate/limited
integrations
"To what extent have the following
presented an issue, if at all, when
developing in a SaaS environment?"
(answers of major or moderate issue)
FIGURE 9
On-Premise Solutions Require Prohibitively High
Time And Expenditure Outlays For Modern
Organizations
Base: 135 US software architecture and development professionals
involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on
behalf of Four51, March 2016
56%
56%
57%
57%
58%
58%
59%
60%
61%
Time required to deploy
Time to acquire and install
required hardware/software
Poor adaptability to business
processes/needs
Procurement/budgeting
processes/personnel
Time required for
maintenance
Configuration and support
Cost of
acquisition/implementation
Applying upgrades or new
versions
Cost of maintenance
"To what extent have the following
presented an issue when developing in
an on premise environment?" (answers of
major or moderate issue)
8
› Quick to-deploy, API-first platforms that support
modern technologies are the PaaS trademarks that
woo developers. Survey respondents who indicated
plans to increase the share of B2B eCommerce projects
they develop in PaaS environments indicate a range of
influences leading to their shift from other environments.
Measured by total mentions within their top three factors,
a modern development environment (including
frameworks and APIs) is the most important, followed
closely by better support for the mobile devices customers
have embraced and improved security. Measured by
mentions as a No. 1 factor, the ubiquitous need for
improved security takes top place, followed by the ability
to roll out new capabilities to customers faster and a tie
between more modern development environment and
lower infrastructure maintenance costs (see Figure 11).
› Successful PaaS-based B2B eCommerce depends on
having the right factors in place. Despite their “ready-
to-go” status, respondents indicated a need for a variety
of resources to get the most out of their PaaS solutions.
Overall, software development kits (SDKs) are seen as
most essential, with training, documentation, ongoing
support services, and RDBMS integration support
following closely behind with no statistically significant
level of difference. What constitutes the most important
resource differs for each respondent group, however.
Partners see documentation as most critical, while
customers are more likely to require ongoing support
services and vendors seek a complete RESTful API set
(see Figure 12).
FIGURE 10
Customization Is An Imperative For B2B eCommerce Solutions
“How important, if at all, is customization of the following elements of a B2B eCommerce solution?” (answers
of critically important or important)
Base: 50-154 US software architecture and development professionals involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016
74%
75%
80%
81%
85%
88%
Unique business
processes
Access to core
source code via an
open source license
Plug-in architecture
that allows event
interception or…
Integration with my
business’s RDBMes
Integration with
commercial
applications
User interface
All respondents
60%
70%
80%
90%
100%
User interface
Integration with
commercial
applications
Integration with
business's RDBMes
Plug-in architecture
allowing event
interception/triggers
Access to core source
code via open source
license
Unique business
processes
Partners Customers Vendors
9
FIGURE 12
Top Resources Needed For Successful PaaS-Based eCommerce Vary By Company Type
“What resources would you need to successfully implement PaaS-based eCommerce?” (answers of critically
important or important)
Base: 135 US software architecture and development professionals involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016
27%
31%
35%
37%
41%
42%
42%
43%
43%
44%
Componentized architecture
Recommended/vetted
consulting partners
Online sandbox to test code
Code Samples
A complete set of RESTful
APIs
RDBMS integration support
Ongoing support services
Documentation
Training
Software development kits
(SDKs) or seeds
All respondents
Partners Customers Vendors
No.1
Resource
Documentation
Ongoing support
services
Complete
RESTful API set
No. 2
Resource
SDKs or seeds
RDBMS integration
support
Training
No. 3
Resource
Ongoing
support services
SDK or seeds Documentation
FIGURE 11
PaaS Adoption Is Driven By Need For Modernization, Support, Security, And Speed
“Which of the following factors have the greatest influence on your decision to increasingly develop B2B
eCommerce projects in a PaaS environment?”
Base: 42 US software architecture and development professionals involved in B2B eCommerce / order management workflows
Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016
2%
10%
7%
7%
14%
17%
19%
10%
14%
14%
7%
7%
12%
7%
12%
7%
17%
17%
2%
10%
14%
12%
10%
10%
14%
14%
14%
Shifting capital expense (Capex) to operating expense
(Opex)
Easier updates to new versions and product features
Easier to customize
Executive pressure to move to cloud-hosted solutions
Lower costs of maintaining application infrastructure
Faster roll out of new capabilities to business
customers
Improved security of data and transactions
Better support for mobile devices
More modern development environment, frameworks,
or APIs
1st ranked 2nd ranked 3rd ranked
10
Key Recommendations
Forrester’s in-depth survey of B2B eCommerce developers yielded several important recommendations:
› The future of B2B eCommerce is in the cloud, so prepare for it now. There’s a gradual, but absolute,
movement to the cloud on the part of B2B eCommerce developers. If your development shop is not comfortable
with cloud economics, or the cloud’s technical underpinnings, then it’s a top priority to start gathering experience
sooner rather than later. Hiring developers with implementation experience is a good start, but teams should also
focus on exposing in-house developers to modern principles like APIs, service consumption, multitenancy and
HTML 5 standards, frameworks, and programming languages.
› Support developers’ exploration of new eCommerce capabilities. Implementing a B2B eCommerce solution
used to be a daunting proposition that required in-depth planning, a long project schedule, and considerable
capital to fund. But modern solutions don’t require teams to “buy the battleship”. Instead, let your developers
experiment with modern solutions that are quick to deploy, pay-as-you-go, and highly customizable. When paired
with Agile development approaches, you’ll quickly find out that today’s B2B eCommerce platforms have more in
common with modern development projects then yesterday’s package implementation efforts.
› Make sure your eCommerce investments support more than just the Web. While we still expect the Web to
be an important buying channel for B2B commerce, it won’t be the only one. Business buyers will follow
consumers and become increasingly comfortable buying from their mobile phone, tablets, and perhaps from their
trucks or other connected devices. Make sure that the eCommerce solutions you invest in provide good support
for mobile today, but also that this support doesn’t lock you into an off the shelf mobile app that can’t easily be
customized. Examine how mobile support will evolve into multi-channel support, and how teams can track buyer
habits across multiple channels, at every stage in their purchase journey.
› Consider the flexibility that PaaS eCommerce platforms deliver. Good PaaS platforms are designed to be
flexible. Look for platforms that separate functional services from user interfaces through an API-first approach.
Other needs like mobile app support, integration with third-party applications, and integration with custom
systems are all much easier when there’s not a hard-linked UI getting in the way. Platform APIs should extend to
administrative functions and reporting functions as well. When implemented properly, a PaaS based eCommerce
platform will quickly prove itself through quick, cost-effective delivery of just the features that developers need.
11
Appendix A: Methodology
In this study, Forrester interviewed conducted an online survey of 150 software development and software architecture
professionals in the United States with experience with B2B eCommerce development projects, with significant
representation of respondents from three segments: Customers (those working to develop software to support their
businesses); partners (those working at a consultant, systems integrator, or digital agency on projects to meet the needs of
clients; and vendors (those working to develop software or online services sold to customers. The purpose of the research
was to discover the motivators for and prevalence of B2B eCommerce development, which development approaches are
being used for such projects, and what challenges developers experience in developing quality B2B eCommerce
capabilities. Respondents were offered small incentives determined and administered by their respective survey panels as a
thank you for time spent on the survey. The study was conducted in March 2016.
Appendix B: Endnotes
i
Source: “The Case For Channel Shifting Offline Customers Online,” June 24, 2015
ii
Source: “B2B eCommerce: A Trillion Dollar For The Taking,” Forrester Research, Inc., September 28, 2015
iii
Source: “Understanding Cloud’s Multitenancy,” Forrester Research, Inc., March 15, 2012

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FOUR51 -Forester TLP

  • 1. A Forrester Consulting Thought Leadership Paper Commissioned By Four51 May 2015 Build Cloud B2B eCommerce Applications On Your Terms PaaS Combines Speed And Agility With The Customization And Integration Businesses Need
  • 2. Table Of Contents Executive Summary ...........................................................................................1 Online Selling Flips B2B Customer Engagement On Its Head, And Developers Are Central To The Transformation............................................2 Plans Signal A Rise In Cloud-Based Development, With PaaS Poised To See The Largest Increase..................................................................................3 Existing B2B eCommerce Implementations Fall Short Of Developer And Business Needs..................................................................................................5 PaaS Solutions Provide A Modern Approach To B2B eCommerce............7 Key Recommendations ...................................................................................10 Appendix A: Methodology ..............................................................................11 Appendix B: Endnotes.....................................................................................11 ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester’s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/consulting. © 2016, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester® , Technographics® , Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to www.forrester.com. [1-ZHNELO]
  • 3. 1 Executive Summary Over the past twenty years, online consumer shopping has become well established, but business buyers have been slower to migrate. But the wait for the online business buyer is coming to an end: In the US alone, the B2B eCommerce market is now on a steady march toward $1 trillion by 2020. With the rise in prominence of the online business buyer, having a strong eCommerce presence is no longer a luxury for B2B sellers. eCommerce systems can’t simply be “bolted on” to existing businesses, however. They must be integrated into sales and partner channels and customized to accommodate unique needs. No one understands this challenge more than the developers working to build and deploy B2B eCommerce solutions. In March 2016, Four51 commissioned Forrester Consulting to evaluate how B2B eCommerce systems fit into the broader digital landscape, and what platform functionality developers require to deliver eCommerce capabilities within modern websites and apps. Four51 also sought to uncover developers’ perceptions of various approaches to B2B eCommerce delivery. Forrester structured a hypothesis to test the assertion that modern developers who work with B2B eCommerce solutions will gravitate toward cloud- hosted platforms over time due to their needs for comprehensive, customizable, and quick-to-implement capabilities and workflows. By conducting a survey of 150 software development and architecture professionals in the United States with recent experience developing B2B eCommerce solutions, Forrester found that current solutions fall far short of needs, and that Platform-as-a-Service (PaaS)-based solutions are an increasingly popular option for developers seeking flexible, quick-to-deploy systems. KEY FINDINGS Forrester’s study yielded 5 key findings: › Current B2B eCommerce deployments disappoint developers. An average of 80% of the developers we surveyed rated one of thirteen B2B eCommerce system qualities we asked about as important or critically important, yet an average of only 36% told us their current solution was excellent at delivering the same qualities. Among the qualities with the biggest deltas between requirements and performance are completeness of feature sets, mobile capabilities, breadth of integration options, and speed of deployment. › Lack of integrations and customizations limit B2B eCommerce success. Nearly half of developers we surveyed cited a lack of necessary integrations with other technologies and capabilities as a top inhibitor of successful B2B eCommerce development, thereby propelling it to the No. 1 spot. Ranking closely behind were the lack of customization to business needs and difficulty integrating with other back end systems. › On-premise and SaaS solutions disappoint developers. A majority of developers are frustrated with the challenges of on-premise eCommerce environments – including cost of acquisition/implementation and maintenance, time required for deployment and maintenance, and procurement headaches. Similarly, all respondents ranked all potential SaaS drawbacks – such as inadequate integrations, limits on developing for certain channels, and poor adaptability to business processes and needs – as a major or moderate issue. › PaaS-based systems are posed for the largest increase in B2B eCommerce deployments. Comfort with multitenant cloud services has risen steeply over the past two years, and B2B eCommerce developers now report plans to decrease the share of projects built on- premise and increase those developed in the cloud. The rate of increase in planned PaaS-based deployments over the next two years is twice that of the increase in planned SaaS-based deployments. Furthermore, developers told us they are significantly more comfortable developing in a PaaS environment than they are in a SaaS environment, while the difference in their levels of comfort in PaaS and on-premise environments is statistically insignificant. › Customization is critical for B2B eCommerce systems. An average of 81% of developers described each of the six customization elements we asked about – ranging from user interface to integration with commercial applications or RDBMSes to unique business processes – as important or critically important. Platform-as-a-Service (PaaS)-based solutions are an increasingly popular option for developers seeking flexible, quick-to-deploy systems.
  • 4. 2 Online Selling Flips B2B Customer Engagement On Its Head, And Developers Are Central To The Transformation Business buyers are consumers, too, and it was only a matter of time before their technology-driven expectations of meeting their needs anytime, anywhere, caused longstanding modes of B2B commerce to yield share to digital ones. B2B sellers have much to gain from this shift. Executives surveyed by Forrester cite factors such as higher loyalty, spend, and profitability as motivators for shifting business buyers online. i Delivering on this new imperative isn’t easy, however, and business stakeholders aren’t the only ones wrapping their heads around it. So, too, are members of technical staff charged with developing, deploying, and evolving the capabilities to make B2B eCommerce possible. Our study found that: › B2B eCommerce is a new world for developers, but there is growing demand for their skills. Engaging business buyers in earnest through eCommerce is such a recent phenomenon that only one-third of the developers we surveyed (all of whom were required to have experience on such projects) had B2B eCommerce experience a mere two years ago. With what Forrester projects to be volume of over $1 trillion by 2020 – a compound annual growth rate of 7.7% – the explosion of B2B eCommerce means that these developers can expect a healthy workload of deploying and refining such systems. ii › Business and technical initiatives alike drive B2B eCommerce projects. The developers we surveyed are generally aligned with the business motivators for deploying B2B eCommerce systems, with the majority citing factors such as high rates of repeat business, reduced costs per order, and competitive pressure as major drivers. Unsurprisingly, developers are also well- attuned to the technical factors putting these projects in the pipeline, too, with at least half of respondents classifying considerations like system modernization, mobile initiatives, and systems integrations as having major sway (see Figure 1). › Developers have a prominent seat at the table when evaluating and selecting solutions. Developers are active participants in the evaluation and selection of B2B eCommerce solutions. In fact, 58% of the developers we surveyed said their roles in such activities have increased recently, a third of whom said they had become much more involved. The share of developers involved in such decision-making activities is particularly sharp at customer organizations (i.e., end user organizations) and partner organizations (e.g., systems integrators, digital agencies, and consultants), where 41% and 44% of developers with FIGURE 1 An Assortment Of Business And Technical Factors Drive B2B eCommerce Initiatives Base: 154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 39% 44% 44% 46% 47% 50% 51% 52% 55% 58% 63% 42% 45% 46% 45% 39% 38% 40% 36% 39% 33% 31% Omnichannel initiatives Increased loyalty Lower customer acquisition/retention costs Reducing order/manual errors Higher spend/average transaction value Systems integrations Competitive pressure Mobile initiatives Reduction of cost per order System modernization Higher rates of repeat/return business "To what extent do you believe the following factors drive the B2B eCommerce projects you work on?" Major driver Moderate driver
  • 5. 3 increased involvement call the change major (see Figure 2). Plans Signal A Rise In Cloud-Based Development, With PaaS Poised To See The Largest Increase When eCommerce first emerged two decades ago, its impact on business buying was hard to foresee. Even less apparent were the various development environments such capabilities could be built and deployed in. In addition to the established on-premise and Software-as-a-Service (SaaS) offerings that have permeated the market, developers are also showing increasing interest in models like Platform-as- a-Service (PaaS), which offer a hosted set of tools and services that allow for the development of custom solutions. Which methods do B2B eCommerce developers prefer today, and which ones will they turn to in the future? We found that: › Cloud-based B2B eCommerce development, led by PaaS, is on the rise. Old habits (and code bases) die hard, so it’s no surprise that on-premise deployment constitutes the largest share of B2B eCommerce deployments today (28%). Yet, various cloud-based models add up to nearly double that amount, with a combined share of 53%. And developers we surveyed are FIGURE 2 Developers Play An Increasingly Prominent Role In B2B eCommerce Solution Evaluation And Selection Base: 50-154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 48% 11% 34% 24% 32% 26% Somewhat more involved Much more involved "To what extent has the role of developers in the evaluation and selection of B2B eCommerce solutions changed at your organization recently?" Partner organizations Customer organizations Vendor organizations 20% Average of all respondents 38% FIGURE 3 PaaS Is Posed To See A Large Increase In Its Share Of B2B eCommerce Projects Not all response options shown Base: 50-154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 28% 19% 17% 17% 26% 21% 19% 16% On -premise Commerce Software-as-a- Service (SaaS) Commerce Platform-as-a- Service (PaaS) Commerce Infrastructure-as- a-Service (IaaS) "Using your best estimate, how much of the code you write for B2B eCommerce projects is deployed in the following environments today? How do you expect that to change?" Currently In two years Projected change in total share of deployments 7% decrease 7% increase 14% increase 1% decrease
  • 6. 4 steadily moving further into the cloud, predicting that 56% of their deployments will be in the cloud within two years. PaaS deployments are projected to see the biggest rate of increase (14%) in their share of B2B eCommerce projects during the next two years, while SaaS’s projected rate of increase is half that (7%) and IaaS deployments are anticipated to decrease slightly. On-premise projects are slated to see the biggest decrease, with their prevalence expected to decrease by 7% (see Figure 3). › Multitenancy is rapidly gaining acceptance. Multitenant architectures – those which let multiple customers share the same applications and/or compute resources – allow service providers to achieve high cost efficiencies while easing services maintenance and updates. Yet, despite these solutions’ abilities to provide improved security when properly configured, early cloud adopters have often worried about security or performance issues from “noisy neighbors”. iii But those fears are receding as developers gain hands-on experience with the cloud. Just two years ago, less than one-third of these developers were very comfortable with multitenancy, and an additional 42% registered as somewhat comfortable. Today, the share of developers claiming at least some comfort with multitenancy has grown significantly (from 71% to 88%). What’s more, the ratio of those who are very comfortable to those who are somewhat comfortable has been flipped, with a robust 59% claiming the highest level of ease with the architecture, and the overwhelming majority of this shift took place just over the past year (see Figure 4). › Developers now prefer PaaS to other cloud delivery models. The expected increase in PaaS development compared to other models can be traced at least in part to developer preference. When asked about their levels of comfort developing in a variety of environments, the developers we surveyed told us that they were significantly more comfortable with PaaS than with SaaS or IaaS. In fact, developers’ levels of comfort with PaaS and on-premise environments are not statistically different. Developers from partner organizations are especially comfortable with PaaS environments: 68% of partner respondents said they were “completely FIGURE 5 Developers Prefer PaaS To Other Cloud Environments Base: 50-154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 44% 56% 59% 61% 59% 46% 50% 66% 72% 76% 30% 66% 68% 62% 70% Infrastructure-as-a-Service (IaaS) Software-as-a-Service (SaaS) Platform-as-a-Service (PaaS) On premise Open source "Generally, how comfortable are you developing in the following environments?" (answers of completely) Partner organizations Customer organizations Vendor organizations 68% Average of all respondents 65% 64% 57% 40% FIGURE 4 The Rate At Which Developers Embrace Multitenancy Has Increased Dramatically “To what degree are you comfortable with multitenancy, and how has that level of comfort changed?” Base: 154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 29% 42% Two Years Ago 59% 29% Today Completely comfortable Somewhat comfortable 36% 45% One Year Ago
  • 7. 5 comfortable” with PaaS, compared to 62% who said the same for on-premise. Customer organizations are extraordinarily comfortable with open source software (see Figure 5). Existing B2B eCommerce Implementations Fall Short Of Developer And Business Needs Deploying a B2B eCommerce solution that meets modern business is a challenging task. Through our research, we sought to understand how current B2B eCommerce solutions meet business requirements and the challenges developers face in deploying them. We also wanted to know about the ease with which developers can work with the two most popular approaches, on-premise and SaaS, which together account for nearly half of all B2B eCommerce deployments. We found that the current landscape leaves much to be desired: › Most in-place B2B eCommerce solutions don’t meet developer needs. Businesses demand that their eCommerce systems be cost efficient, feature-rich, and differentiated from the competition. Furthermore, such systems must be quick to deploy and capable of supporting unique business processes. To accommodate this list of requirements, developers need solutions that meet a great deal of criteria. Yet, according to our survey respondents, traditional solutions aren’t up to par. An average of 80% of developers rated each of the thirteen B2B eCommerce solution qualities we asked about as important or critically important, yet a dismal average of 36% said their current solution is excellent at the same – a whopping delta of forty-four percentage points (see Figure 6). › Subpar integration and customization capabilities limit success of B2B eCommerce implementations. The lack of necessary integrations with other technologies and capabilities ranks as the No. 1 inhibitor of successful B2B eCommerce workflows among our respondents. Tied for No. 2 are a lack of customization to business needs and difficulty integrating with other back end systems. FIGURE 6 The Performance Of Today’s B2B eCommerce Deployments Fall Far Short Of Needs Base: 154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 36% 34% 29% 44% 32% 35% 49% 39% 37% 38% 33% 31% 29% 72% 72% 67% 83% 72% 76% 90% 82% 80% 88% 84% 86% 85% Customizability of core business processes Customizability of the solution's user interfaces Documentation and online training resources Maintainability API extensibility Scalability Security Speed/ease of deployment Breadth of integration options Cloud deployment capabilities/cloud-readiness Mobile capabilities Completeness of feature set Cost "How important are the following qualities of B2B eCommerce solutions? How do you rate your current B2B eCommerce solution's capabilities?") "This quality is important or critically important for a B2B eCommerce solution" "Our current B2B eCommerce solution is excellent at this" Needs vs. Performance Delta 56% 55% 51% 50% 43% 43% 41% 41% 40% 39% 38% 38% 36%
  • 8. 6 Difficulty customizing the user experience and extending support to mobile devices also made the list of top inhibitors (see Figure 7). › SaaS solutions don’t accommodate unique business requirements. While SaaS-based eCommerce solutions have taken significant market share in the early stages of firms’ moves to the cloud, we found that the majority of developers reported a moderate or major issue with each potential drawback of SaaS, the top of which include inadequate integrations, limited options for developing for individual channels (like Web or mobile), and version centricity (see Figure 8). We ascribe early SaaS success more to lack of eCommerce PaaS availability than superior capability, as evidenced by increased PaaS adoption intentions in light of increased offerings. › On-premise solutions don’t work with modern timelines and budgets. Although their honeymoon phase with SaaS may be waning, developers won’t be pining for a return to on-premise dominance anytime soon. We also asked respondents who recently developed in an on-premise environment what pain points such projects inflicted, and found a similar average of 58% reporting moderate or major issues across a range of factors. Cost – of both maintenance/acquisition and implementation – made the list of top three issues, as did the burden of applying upgrades and new versions. Respondents also complained about the time required to maintain and acquire, implement, and deploy on-premise solutions, and the headache of dealing with internal procurement and budgeting processes (see Figure 9). FIGURE 7 Lack of integration and customization limit the success of B2B eCommerce systems Base: 154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 % respondents placing factor in Top 5 47% 42% 42% 38% 36% 36% 36% 29%5% 8% 8% 9% 6% 6% 13% 8% 5% 11% 5% 5% 9% 13% 4% 9% 7% 5% 5% 7% 8% 8% 6% 13% 5% 5% 8% 8% 7% 8% 9% 9% 7% 7% 10% 7% 8% 7% 10% 8% Overemphasis on technology versus strategy Extending support to new devices like mobile phones or tablets Difficulty customizing the user experience Lack of budget Insufficient staff expertise Difficulty integrating with other back end systems Lack of customization to business needs Lack of necessary integrations with other technologies/capabilities "What are the top inhibitors to successful development of B2B eCommerce systems?" (Top 8 responses) Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
  • 9. 7 PaaS Solutions Provide A Modern Approach To B2B eCommerce With the need for solutions that are not only customized, but quick to deploy, it’s not surprising that B2B eCommerce developers plan to ramp up their work with PaaS more than any other environment. But not all solutions provide the hallmarks of PaaS’ value proposition, such as API-first qualities and out-of-the-box support for applications that support customer and business needs. What customization elements are most important, what factors drive PaaS adoption, and what qualities does a PaaS B2B eCommerce solution need in order to be successful? The developers we surveyed told us that: › UI is the top customization need, with integrations following closely. It’s no wonder that developers want APIs that clearly separate user interfaces from business logic. An API-first approach supports custom development of user interfaces and eases integration with commercial applications, the two most important elements of B2B eCommerce customization valued by our respondents (88% and 85%, respectively). Other customization wants include integration with RDBMes, plug-in architectures, access to open source code, and accommodation of unique business processes. In fact, at least three-quarters of respondents say any of the customization components we asked about are important or critically important in the solutions they seek. Interestingly, developers at end user customer organizations generally value customization more than the partners and vendors that serve them. Although the strong majority of developers at vendor organizations say customizations are important, they are comparative laggards when it comes to the magnitude of that importance (see Figure 10). FIGURE 8 SaaS Solutions Are Viewed By Many As Inflexible Base: 142 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 55% 57% 59% 60% 61% 62% Poor adaptability to business processes/needs Limited user interface options Limited scaling capabilities Version centricity Limits of developing for individual channels Inadequate/limited integrations "To what extent have the following presented an issue, if at all, when developing in a SaaS environment?" (answers of major or moderate issue) FIGURE 9 On-Premise Solutions Require Prohibitively High Time And Expenditure Outlays For Modern Organizations Base: 135 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 56% 56% 57% 57% 58% 58% 59% 60% 61% Time required to deploy Time to acquire and install required hardware/software Poor adaptability to business processes/needs Procurement/budgeting processes/personnel Time required for maintenance Configuration and support Cost of acquisition/implementation Applying upgrades or new versions Cost of maintenance "To what extent have the following presented an issue when developing in an on premise environment?" (answers of major or moderate issue)
  • 10. 8 › Quick to-deploy, API-first platforms that support modern technologies are the PaaS trademarks that woo developers. Survey respondents who indicated plans to increase the share of B2B eCommerce projects they develop in PaaS environments indicate a range of influences leading to their shift from other environments. Measured by total mentions within their top three factors, a modern development environment (including frameworks and APIs) is the most important, followed closely by better support for the mobile devices customers have embraced and improved security. Measured by mentions as a No. 1 factor, the ubiquitous need for improved security takes top place, followed by the ability to roll out new capabilities to customers faster and a tie between more modern development environment and lower infrastructure maintenance costs (see Figure 11). › Successful PaaS-based B2B eCommerce depends on having the right factors in place. Despite their “ready- to-go” status, respondents indicated a need for a variety of resources to get the most out of their PaaS solutions. Overall, software development kits (SDKs) are seen as most essential, with training, documentation, ongoing support services, and RDBMS integration support following closely behind with no statistically significant level of difference. What constitutes the most important resource differs for each respondent group, however. Partners see documentation as most critical, while customers are more likely to require ongoing support services and vendors seek a complete RESTful API set (see Figure 12). FIGURE 10 Customization Is An Imperative For B2B eCommerce Solutions “How important, if at all, is customization of the following elements of a B2B eCommerce solution?” (answers of critically important or important) Base: 50-154 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 74% 75% 80% 81% 85% 88% Unique business processes Access to core source code via an open source license Plug-in architecture that allows event interception or… Integration with my business’s RDBMes Integration with commercial applications User interface All respondents 60% 70% 80% 90% 100% User interface Integration with commercial applications Integration with business's RDBMes Plug-in architecture allowing event interception/triggers Access to core source code via open source license Unique business processes Partners Customers Vendors
  • 11. 9 FIGURE 12 Top Resources Needed For Successful PaaS-Based eCommerce Vary By Company Type “What resources would you need to successfully implement PaaS-based eCommerce?” (answers of critically important or important) Base: 135 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 27% 31% 35% 37% 41% 42% 42% 43% 43% 44% Componentized architecture Recommended/vetted consulting partners Online sandbox to test code Code Samples A complete set of RESTful APIs RDBMS integration support Ongoing support services Documentation Training Software development kits (SDKs) or seeds All respondents Partners Customers Vendors No.1 Resource Documentation Ongoing support services Complete RESTful API set No. 2 Resource SDKs or seeds RDBMS integration support Training No. 3 Resource Ongoing support services SDK or seeds Documentation FIGURE 11 PaaS Adoption Is Driven By Need For Modernization, Support, Security, And Speed “Which of the following factors have the greatest influence on your decision to increasingly develop B2B eCommerce projects in a PaaS environment?” Base: 42 US software architecture and development professionals involved in B2B eCommerce / order management workflows Source: A commissioned study conducted by Forrester Consulting on behalf of Four51, March 2016 2% 10% 7% 7% 14% 17% 19% 10% 14% 14% 7% 7% 12% 7% 12% 7% 17% 17% 2% 10% 14% 12% 10% 10% 14% 14% 14% Shifting capital expense (Capex) to operating expense (Opex) Easier updates to new versions and product features Easier to customize Executive pressure to move to cloud-hosted solutions Lower costs of maintaining application infrastructure Faster roll out of new capabilities to business customers Improved security of data and transactions Better support for mobile devices More modern development environment, frameworks, or APIs 1st ranked 2nd ranked 3rd ranked
  • 12. 10 Key Recommendations Forrester’s in-depth survey of B2B eCommerce developers yielded several important recommendations: › The future of B2B eCommerce is in the cloud, so prepare for it now. There’s a gradual, but absolute, movement to the cloud on the part of B2B eCommerce developers. If your development shop is not comfortable with cloud economics, or the cloud’s technical underpinnings, then it’s a top priority to start gathering experience sooner rather than later. Hiring developers with implementation experience is a good start, but teams should also focus on exposing in-house developers to modern principles like APIs, service consumption, multitenancy and HTML 5 standards, frameworks, and programming languages. › Support developers’ exploration of new eCommerce capabilities. Implementing a B2B eCommerce solution used to be a daunting proposition that required in-depth planning, a long project schedule, and considerable capital to fund. But modern solutions don’t require teams to “buy the battleship”. Instead, let your developers experiment with modern solutions that are quick to deploy, pay-as-you-go, and highly customizable. When paired with Agile development approaches, you’ll quickly find out that today’s B2B eCommerce platforms have more in common with modern development projects then yesterday’s package implementation efforts. › Make sure your eCommerce investments support more than just the Web. While we still expect the Web to be an important buying channel for B2B commerce, it won’t be the only one. Business buyers will follow consumers and become increasingly comfortable buying from their mobile phone, tablets, and perhaps from their trucks or other connected devices. Make sure that the eCommerce solutions you invest in provide good support for mobile today, but also that this support doesn’t lock you into an off the shelf mobile app that can’t easily be customized. Examine how mobile support will evolve into multi-channel support, and how teams can track buyer habits across multiple channels, at every stage in their purchase journey. › Consider the flexibility that PaaS eCommerce platforms deliver. Good PaaS platforms are designed to be flexible. Look for platforms that separate functional services from user interfaces through an API-first approach. Other needs like mobile app support, integration with third-party applications, and integration with custom systems are all much easier when there’s not a hard-linked UI getting in the way. Platform APIs should extend to administrative functions and reporting functions as well. When implemented properly, a PaaS based eCommerce platform will quickly prove itself through quick, cost-effective delivery of just the features that developers need.
  • 13. 11 Appendix A: Methodology In this study, Forrester interviewed conducted an online survey of 150 software development and software architecture professionals in the United States with experience with B2B eCommerce development projects, with significant representation of respondents from three segments: Customers (those working to develop software to support their businesses); partners (those working at a consultant, systems integrator, or digital agency on projects to meet the needs of clients; and vendors (those working to develop software or online services sold to customers. The purpose of the research was to discover the motivators for and prevalence of B2B eCommerce development, which development approaches are being used for such projects, and what challenges developers experience in developing quality B2B eCommerce capabilities. Respondents were offered small incentives determined and administered by their respective survey panels as a thank you for time spent on the survey. The study was conducted in March 2016. Appendix B: Endnotes i Source: “The Case For Channel Shifting Offline Customers Online,” June 24, 2015 ii Source: “B2B eCommerce: A Trillion Dollar For The Taking,” Forrester Research, Inc., September 28, 2015 iii Source: “Understanding Cloud’s Multitenancy,” Forrester Research, Inc., March 15, 2012