eBay: Some History
Ebay is an online auction service, uniting buying and sellers across the world. It was initially founded in 1995, then known as AuctionWeb; the company’s current name, eBay, came about in 1997. Since its first sale, a broken laser pointer (estimated value under a dollar), it quickly grew into a corporation grossing over 10 million in revenue, according to 2018 materials.
eBay: Choosing a cloud computing model
When choosing a cloud computing model that would work best for a service such as eBay, one needs to consider the user base. For eBay, the most important factor is that its users, both buyers and sellers, are likely to use the service intermittently. For many of them, once they have bought or sold the item they wanted, they no longer need the service. Furthermore, as long as the items and payments are being delivered, the users do not know or care who the other person is. Finally, regular users are not likely to possess the computer literacy needed to install, maintain, or run complex software.
The Software-as-a-service (SAAS) model
Software-as-a-Service is a cloud computing model that suits eBay’s needs outlined in the previous slide. The vendor hosts the proprietary service, which can be accessed by users, often through a web browser. This means it requires no dedicated hardware, installation or additional steps to maintain or update on the user’s part beyond accessing the service from their existing device — from his or her perspective, it just works. This is the crucial advantage of SaaS compared to other cloud computing models: Grandma can use it to sell her vintage desk lamp with only basic computer knowledge required to operate an email and an accessible web site.
Advantages of SAAS
Deploying the SAAS model brings several advantages to the vendor. As outlined previously, it is accessible and easy to make available to a broad audience. As anyone can access the service without specialized hardware, software, or knowledge, it can be brought to a large audience with little to no limitations. Furthermore, the ease of access is further improved by the fact that since the service works entirely in a web browser, the user does not need to spend any time on installing, updating, or managing it. He or she can stop and resume using it as necessary, even with years in between.
More advantages of SAAS
For the vendor, developing a SAAS model allows to reduce costs, as well. Since the critical part of the software is hosted on the vendor’s hardware, there is no need to develop separate software for Windows, MacOS, Linux, Android, or maintain implementations for legacy systems. Although a web client still needs to be adapted to the different display configurations like smartphones, tablets, and desktops, this requires less work. Finally, using the SAAS model saves time and money on its support and maintenance for the same reason. Once implemented, updates can be pushed to the service and all of its users simultaneously, preventing edge-case issues affecting only a minority of them.
Disadvantages of SAAS
SAAS is not a perfect model; like any system, it has its disadvantages. However, these disadvantages are either shared by all cloud models, or negligible for eBay. Although connecting to a web service and using a web browser for all interactions with the system can be slow, compared to dedicated software, especially in areas with limited connectivity, an online auction is generally not a service where time is critical. Most importantly, eBay’s service needs to handle its users’ personal and financial information, such as addresses and payment details. This makes security breaches especially dangerous as they can cause significant damage. However, this disadvantage is true for any cloud model.
References
eBay. (2020). Our history. Web.
U.S. Securities and Exchange Commission. (2019). eBay, Inc. 2018 Annual Report (Form 10-K). Web.
NIBusiness. (n. d.). Advantages and disadvantages of Software as a Service (SaaS). Web.