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ACME - Co Problem Statement

Acme's e-commerce platform is struggling with its on-premises infrastructure, facing issues like slow performance, frequent downtimes, and high operational costs, especially during peak traffic periods. Migrating to a cloud VPS is proposed to enhance scalability, reliability, and security, ultimately improving customer experience and reducing costs. This transition is deemed essential for maintaining competitiveness and supporting the platform's growth in the e-commerce market.

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18 views4 pages

ACME - Co Problem Statement

Acme's e-commerce platform is struggling with its on-premises infrastructure, facing issues like slow performance, frequent downtimes, and high operational costs, especially during peak traffic periods. Migrating to a cloud VPS is proposed to enhance scalability, reliability, and security, ultimately improving customer experience and reducing costs. This transition is deemed essential for maintaining competitiveness and supporting the platform's growth in the e-commerce market.

Uploaded by

babelart9
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem Statement: Migrating

E-commerce Platform from


On-Premises Servers to Cloud VPS

Background
Acme e-commerce platform is currently handling over 500,000 monthly transactions and
operates as an on-premises server infrastructure.

This setup has supported operations for years, the platform is facing challenges in handling
seasonal traffic spikes, maintaining uptime during peak hours, and ensuring data security.

Maintaining the hardware and software on-premises has resulted in increasing operational costs
and resource allocation for IT management.

Problem Description
What is the problem?
The current on-premises infrastructure lacks the scalability, flexibility, and reliability required to
support the platform's growing user base and operational demands.

Several critical performance limitations


The current infrastructure is not able to handle spikes in traffic during peak sales periods. This
results in slowing down of the site. The system typically crashes during these periods and users
report extremely laggy website functionality.

Scaling up the infrastructure to meet the demand is a time consuming procurement process and
requires huge capital investment. Also there is no dynamic response to this setup since the new
physical servers may not be needed during off peak sales periods. This means that the servers
consume lots of power without generating any profit due to wasted resources.
There is frequent downtimes and laggy functionality during peak hours. This compromises
critical operations like transaction processing, inventory updates and customer interactions with
the customer service team.

Disaster recovery options are also pretty limited, exposing acme to failure and data breaches.

Who is affected?
Customers experience slow page load times and occasional downtime during high-traffic
periods.

The IT team is overburdened with maintenance and troubleshooting tasks, which detracts from
innovation and improvements.

When and where does it occur?


Issues predominantly occur during sales events, holiday shopping seasons, and unexpected
traffic surges. These challenges are evident globally, impacting all regions where the platform
operates.

Why does it matter?


If unaddressed, the platform risks losing customers to competitors due to poor user experience,
incurring reputational damage, and increasing operational inefficiencies.

Impact of the Problem


Bad Customer Experience
Longer load times and downtime negatively affect the customer journey, reducing conversion
rates by an estimated 15%.

Revenue Loss
Downtime during peak traffic results in a potential loss of $50,000–$100,000 in daily revenue.
Operational Inefficiency
High maintenance requirements and limited automation increase operational costs by
approximately 20%.

Security Risks
Outdated infrastructure poses challenges in implementing advanced security protocols,
increasing the risk of data breaches.

Root Cause Analysis


The on-premises infrastructure is not designed to scale dynamically with traffic demands.

Hardware limitations prevent rapid upgrades and expansions.

Dependence on internal IT resources for maintenance leads to slower issue resolution.

Lack of modern disaster recovery and failover capabilities increases downtime risks.

Desired Outcome
Migrating the e-commerce platform to a cloud-based Virtual Private Server (VPS) infrastructure
will:

Provide dynamic scalability to handle traffic surges.

Ensure 99.99% uptime through high availability and failover mechanisms.

Reduce operational costs by 25% through automation and managed services.

Enhance security and compliance with modern tools and protocols.

Improve page load times by up to 40%, boosting user satisfaction and conversion rates.
Scope
In-Scope: Migration of the core e-commerce platform, databases, and associated APIs to a
cloud VPS environment. Implementation of automated scaling, backups, and disaster recovery
mechanisms.

Out-of-Scope: Migration of peripheral systems like email servers and legacy third-party
integrations.

Supporting Data
Current average page load time: 4.2 seconds; industry benchmark: 2.5 seconds.

Recent downtime during a holiday sale: 4 hours, costing $75,000 in lost revenue.

The IT maintenance budget increased by 30% in the last fiscal year, largely due to aging
hardware.

Conclusion
The migration to a cloud VPS solution is critical for sustaining the platform's growth and
maintaining competitiveness in a fast-paced e-commerce market. By addressing scalability,
reliability, and cost inefficiencies, this migration will ensure a superior customer experience and
support long-term business objectives.

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