E-COMMERCE GLOSSARY

The most important terms

Best-of-Breed

Best-of-breed in IT refers to a strategy in which companies select the best available solutions and systems from different providers to create an optimal IT infrastructure. Instead of relying on an all-encompassing solution from a single provider, companies choose individual components from different solutions for themselves.

Composable Architecture

Composable Commerce describes the use of various modular building blocks and services connected to each other via APIs, in order to create a tailored and flexible e-commerce solution. Unlike traditional monolithic e-commerce platforms, which are often inflexible and hard to update, Composable Commerce offers the ability to add new features quickly or remove unwanted ones, because these are linked from the outside via the API rather than woven into the existing systems. It also enables the integration of third-party services, such as payment processing, shipping and tax services, to improve the user experience and optimize operations.

Headless

In e-commerce, "Headless" refers to an architecture in which the presentation layer (frontend) is separated from the backend logic and data. In other words: the part responsible for displaying products and interacting with the user (frontend) is separated from the part responsible for managing orders, inventory, customers and other important data (backend). Access happens via APIs, which decouples the logic from the presentation, with the effect that the presentation can be built individually without dependencies.

Custom software

Custom software is developed and further developed specifically for use at a particular customer or company.

Monolith vs. Microservices

Monolithic and Microservices architectures are two popular approaches to building software applications. Here are some differences between them:

Architecture: Monolithic applications are built as a single unit, with all components tightly integrated and dependent on each other. Microservices, on the other hand, are designed as a collection of small, independent services that communicate with each other via APIs.

Scalability: Monolithic applications are hard to scale because they have to be deployed as a whole. Microservices, by contrast, are designed to be scalable independently of one another, which allows for greater flexibility.

Flexibility: Microservices are more flexible than monolithic applications because they are designed to be loosely coupled, which makes it easier to add or remove services as needed. In contrast, changes to a monolithic application can pose a greater challenge, because the components are tightly connected to each other.

Deployment: Monolithic applications are deployed as a single unit, which can be complex and time-consuming. Microservices, on the other hand, can be deployed independently of one another, which makes the deployment process faster and more efficient.

Maintenance: Monolithic applications can be harder to maintain, because any change to the code can affect the entire application. Microservices, by contrast, are modular and can be maintained independently of one another, which makes it easier to update or fix problems.

On-Premise

On-premise means that the application/software is licensed and provided by the manufacturer. As a rule, the manufacturer offers updates and further developments, which the operator/license holder has to roll out or install independently. Operating the application is the responsibility of the licensee.

SaaS

SaaS stands for "Software-as-a-Service". It is a cloud computing service in which software applications are provided over the internet. Unlike traditional software installations on local devices, with SaaS the software is not installed on users' end devices but provided over the internet via a web browser or a mobile app. SaaS software applications are developed and managed by a provider. Customers can use the applications via a subscription model and usually have access to all the application's features over the internet.

With SaaS, companies can access the latest version of the software without bearing the costs and complexity of maintaining and updating local software infrastructure. SaaS services are also highly scalable, which means software resources can be better matched to the actual needs of companies and users.

Standard software

Standard software refers to application programs or software products that have already been developed, tested and made available on the market. This software is designed for a broad range of applications and can be used by different companies and organizations. Using standard software offers various advantages, such as lower costs for software development and implementation, a fast time to market, high quality and reliability, easy integration with other systems and a broad range of support and training resources. However, standard software also has some drawbacks, especially when a company's specific requirements or processes are not fully covered by the software. In that case it may be necessary to carry out custom software development or adaptations to meet the company's specific requirements.