The Relevance of Cloud Computing to Large Scale E-commerce in Turkey

This article discusses the relevance of cloud computing to large scale e-commerce in Turkey. It explores the benefits of cloud computing and its impact on the Turkish e-commerce sector. The article also examines the current state of e-commerce in Turkey and the regulatory policies related to cloud computing in the country.

The Relevance of Cloud Computing to Large Scale E-commerce in Turkey 1
The Relevance of Cloud Computing to Large Scale E-commerce in Turkey
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The Relevance of Cloud Computing to Large Scale E-commerce in Turkey 2
The Relevance of Cloud Computing to Large Scale E-commerce in Turkey
It is 2019 and the manner in which ecommerce market themselves is evolving at a high
rate. Many business are now paying more attention to digital channels for economic reasons.
Cloud computing is a fairly new technological innovation but a flourishing one in Turkey.
International Data Corporation reports that the cloud services in the country has become the
ecommerce’s major economic driver. According to Computerweekly (2013), SME highly
embraced cloud computing in 2013, this is mainly because the corporate is more flexible while
their human resource and IT infrastructure are more inadequate. For that reason, cloud
computing can be an opportunity for ecommerce in Turkey to access high quality IT services
with a relatively low investment. However, besides its immense benefits, should it be the way to
go for large scale online business and complex organization scenario?
On the high scaling growth in ecommerce sector in Turkey, the country has a conscious
consumer profile that quickly cope with the digital environment and this can be proven by the
large global ecommerce and retail business corporations that have been entering the country with
the aim of exploiting this potential. Moreover, the foreign players investment in the country is a
clear indication that the country’s ecommerce sector and national economy have a very huge
growth potential. With that said, adoption of cloud computing could be the route of execution
towards leveraging this potential.
Cloud computing
This paper seek to answer the above question. However, before that, we will take a quick
glance on cloud computing. Cloud computing technology is an innovation that has established
itself in the current generation of information technology and business (Langmead, and Nellore,

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2018, pp.208). Seeking to reduce the operation cost and capitals, business corporations often
install the resources which are essential to run its applications. However, this is significantly
different in cloud as far as its specific technology and their implementations are concerned.
Cloud technology, instead, provide three services namely Infrastructure as a service Iaas,
software as a service SaaS, and platform as a service PaaS.
Infrastructure as a Service IaaS provides its consumers with storage, information
processing, network, among other important computing resources where a user can be able to run
and deploy the arbitrary software including applications and operating systems. This platform
does not allow its users to control the cloud infrastructure but they have capability to control
operating systems, the deployed application and storage. Platform as a service PaaS on its side
allow its users to leverage the user created or acquired applications (Colajanni, and Daniele,
2019, pp.1-21). The consumers, however, cannot manage or control the underlying cloud
infrastructure, thus they have limited control. Software as a service SaaS, however, allow its
consumers to use the applications that already available in the cloud. The users can access the
applications through thin client interfaces like web browsers but they does not have control over
the underlying cloud infrastructure. These services guarantee promising outcome when exploited
by large business. Not only small scale ecommerce are leveraging these services to access the
resources to run their business, large scale business have also joined cloud due to its
overreaching benefits.
The benefits of cloud computing
In the first place, ecommerce and cloud computing are two catchwords. The two words
are widely known due to the fact that they are cost effective. From economic view point,
implementing cloud computing saves business the cost of infrastructure. Large scale ecommerce

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are now benefiting a lot from cloud computing (Avram, 2014, pp.529-534). Businesses will
always follow cost-effective routes for their success. Cloud computing saves business companies
a lot. The e-commerce business can buy or rent a store in the cloud at a considerably lower cost
that when they purchase the resources.
Cloud computing offer positive opportunities that are affordable to business
organizations. Research shows that every $1 can generate $1.08 in information technology capex
saving when servers and storages are eliminated. In addition to the direct savings, there are
considerable impacts on the business performance including conversion of the industry’s capital
expenditure into business expenditure reduction of the upfront investment that is mostly required
by large scale business (Hosseini, Fallon, Weerakkody and Sivarajah, 2019, pp.54-69). From the
economics standpoint, the reduction of the requirements of capital expenditure resulting from
cloud computing has gotten widely recognized to be having immense benefits.
According to the European commission, the cloud computing enabled low capital
expenditures reduces barriers to entry which promotes ecommerce. Furthermore, OECD reports
that not only small scale business but also large scale business can benefit from the reduced low
capital expenditures due to cloud computing, this is because apart from saving the investment
cost, they also lead to access to the cutting edge innovations.
By this, the reduced investment cost due to cloud computing support and reinforce the
economic impacts of large scale business corporations. Ankara (2018) reports that Microsoft is
set to launch cloud computing in Turkey. Through the development and deployment of cloud
computing, ecommerce is expected to grow at a considerable pace in the country as such, laggard
corporations may face serious economic challenges. Despite the profound benefits of the cloud
computing that large scale e-commerce business can leverage in Turkey, there are cloud related

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regulatory in Turkey that would be hindrance in exploiting full potentials of cloud computing in
the e-commerce sector.
The cloud computing related policies in Turkey
Turkey has two main strategies that which are related to the adoption of cloud computing
in the country. The first policy is the 2015-2018 information society strategy and action plan.
Another policy is the 2016-2019 National e-government strategy and action plan (Yılmaz, Sirel
and Esen, 2019, pp. 481-498). The country’s new privacy 2016 law has been found to be a
positive development in providing clarity and certainty of regulatory. However, these rules in
some cases acts as barriers for cloud adoption for e-commerce in Turkey.
In summary, in attempt to answer the previously stated question, this paper has presented
the relevance of cloud computing to big organizations in Turkey. In doing so, the article has
examined the current state of e-commerce in the country, we have also explored cloud
computing and its platforms and further identified the benefits of the cloud computing from the
economic stance along with the newly formulated regulations that would hinder its adoption by
the country. The study reasonably suggest that cloud computing is the way to go for all e-
commerce business irrespective of its complexity or size. This is suggested that overreaching
benefits of cloud computing ranging from cost effectiveness and efficiency as pointed out in the
document.

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Reference list
Ankara. (2018, March). Microsoft targets to spread cloud computing in Turkey: Country chief.
Accessed on 10th May, 2019 from: < http://www.hurriyetdailynews.com/microsoft-targets-to-
spread-cloud-computing-in-turkey-country-chief-128563>
Avram, M.G., 2014. Advantages and challenges of adopting cloud computing from an enterprise
perspective. Procedia Technology, 12, pp.529-534.
Colajanni, G. and Daniele, P., 2019. A Mathematical Network Model and a Solution Algorithm
for IaaS Cloud Computing. Networks and Spatial Economics, pp.1-21.
ComputerWeekly. (2013). User demands pushing cloud computing SME cloud adoption.
Accessed on 10th May, 2019 from: < https://www.computerweekly.com/news/2240186610/User-
demands-pushing-SME-cloud-adoption>
Hosseini, S., Fallon, G., Weerakkody, V. and Sivarajah, U., 2019. Cloud computing utilization
and mitigation of informational and marketing barriers of the SMEs from the emerging markets:
Evidence from Iran and Turkey. International Journal of Information Management, 46, pp.54-
69.
International Data Corporation. (2019). “IDC Multi Cloud Summit 2019: Hybrid computing:
Future of IT”. Accessed on 10th May, 2019 from: < https://www.idc.com/mea/events/65937-idc-
multi-cloud-summit-2019>
Langmead, B. and Nellore, A., 2018. Cloud computing for genomic data analysis and
collaboration. Nature Reviews Genetics, 19(4), p.208.

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Yılmaz, H.E., Sirel, A. and Esen, M.F., 2019. The Impact of Internet of Things Self-Security on
Daily Business and Business Continuity. In Handbook of Research on Cloud Computing and Big
Data Applications in IoT (pp. 481-498). IGI Global.