Summary
Software developers that provide ecommerce solutions for the "do-it-yourself" IT crowd will feel the mounting pressure of social networks. Outsourcing providers that need to match pace with "best in class" Internet merchants will feel the pressure to keep up with Amazon and others. Consumer technology continues to migrate into maintstream IT solutions.
Analysis
Amazon does it again. Their desire and ability to take advantage of the latest innovations makes it difficult for ecommerce service providers and technology providers alike.
Ecommerce technology providers such as ATG, SAP, IBM, Oracle and others will feel the pressure from their clients that want everything that Amazon offers. The integration of Facebook into the Amazon shopping experience sets an expectation for every global brand that maintains a storefront that they too, must now rise to the same standard. This means that large customers like Wal-mart, Lands End, LL Bean and others will be turning to their software providers and asking for social networking solutions.
Service providers that claim they can "do it all"; that they offer a complete hosted ecommerce solution; must again follow the lead of Amazon and deliver an integrated social networking solution. Companies like GSI Commerce, TeleTech/Direct Alliance), Digital River and others will hear the same request from their clients. "When can we have the same capability?"
The expense of innovation is not always in the creation of the new technology but rather in the demands for adoption into legacy systems and processes that it imposes on well established companies. The IT team carries the burden of these demands and they need to get active on the social circuit or risk losing a few years in competitiveness for their company.
