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Jeff Lynch [MVP]

Everything E-Commerce!

Commerce Server 2007: B2B E-Commerce is Easy!

Now that I've got your attention, let me qualify this somewhat by stating that developing a B2B (business-to-business) e-commerce web application is both easier and less costly than developing a B2C (business-to-consumer) web application. This is especially true when your application platform is SQL Server 2005, BizTalk Server 2006 and Commerce Server 2007!

Take for example the hardware and software requirements. In a B2C scenario, you need to size your hardware for a much larger potential peak load. Remember Amazon.com's first holiday season? You just never know for sure how many "consumers" will hit your site at the same time. Most (if not all) businesses that sell to other businesses already know who their customers are and the numbers range from a few hundred to a few thousand. Purchasing servers to support a few hundred concurrent users (peek load) is much easier and less expensive. Since most businesses will accept orders in a variety of formats (snail-mail, telephone, fax, email and over the web), true 24 x 7 x 365 site availability (and the redundant hardware / software it requires) may not be absolutely necessary, at least not at first. This doesn't mean that you shouldn't buy the best hardware you can afford. It means that generally, this hardware doesn't have to cost tens of thousands of dollars.

The software costs go right along with the hardware costs. Most medium size businesses can get started in B2B e-commerce by purchasing the "Standard Editions" of SQL Server 2005 (retail: $5,999 per processor), BizTalk Server 2006 (retail: $8,499 per processor) and Commerce Server 2007 (retail: $6,999 per processor), although I always recommend looking closely at Microsoft's volume license agreements to save some money. Developer licenses of all three products are also very inexpensive, so the barrier to get started is very low.

Development costs are also very reasonable and most medium size businesses with a few knowledgeable .NET developers can put together a B2B web application in a few months. We did our entire e-commerce project with two developers in only four months and we neither of us worked exclusively on the project. It really doesn't take a rocket scientist (I humbly apologize to my friends at NASA) to learn to use SQL Server, BizTalk Server and Commerce Server. All three products are designed to work together seamlessly to provide a robust application development platform (see, I really wasn't asleep during the keynote at TechEd) and all the developer needs to do is write the code that brings everything together!

Over the next several months, I'll be presenting a new series of posts aimed specifically at how to write a B2B e-commerce application using SQL Server 2005, BizTalk Server 2006 and Commerce Server 2007. I'll start at the beginning (planning your architecture) and then move through the development process step by step. I'll be presenting code samples within each post (which can also be downloaded as a zip file) so that you can try things out for yourself. I'll be linking to many blogs from the BizTalk and Commerce Server communities as well as to some excellent MSFT white papers recently released.

As always, ping me via this blog with your questions and comments. I'll try my best to get back to you with answers as quickly as possible.

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Comments

jdn said:

You are kidding about the costs, right?  No real e-Com site of any traffic volume could run on single processor standard editions, so you'd have to get the enterprise editions of BizTalk, Commerce, and SQL, so that's $30k + $20k + $25k = $75k per processor.

So, to run on a standard 8-CPU, two SQL cluster, that's $30k +$25k = $55k *16 = $880k for the BizTalk SQL part, and then say 20 4-cpu web servers that's $20k * 20 * 4 = $1600k = $1.6 million.

Total that up for around $2.5 million in software costs to run this puppy.  Which is why in a previous life we stopped using Site Server Commerce Edition when it changed to Commerce Server licensing.  And as much as I'd love to use it now, its cost is unsupportable, unless you are considering it versus something like Dynamo ATG.

# January 11, 2007 10:32 AM

jlynch said:

Actually I'm not kidding about the costs and I've put together several B2B web applications for the companies that I've worked for well under $100,000 (hardware and software) that have processed hundreds of millions in business. Some of these have even been documented by Gartner and all have been published by Microsoft. The hardware and software requirements for B2B e-commerce are very reasonable when using Commerce Server, BizTalk Server and SQL Server. Obviously, B2C is a different story altogether. I'd be more than happy to elaborate further and send you the various case studies if you have any doubts. Just ping me via my blog and leave a telephone number. Jeff
# January 11, 2007 6:44 PM

Jim McLean said:

So you can put together a B2B web site for less than $100K. Now that you have built this site tell us how you sync all of the back office data (inventory availability, customer specific pricing, consolidated order history, AR transaction history, so that my Account customers have access to accurate, real time data). And tell me how I process orders from the web and fully update my back office system without any re-keying of data. If you can't deal with the back office it is completely meaningless to brag about building a non-integrated B2B web site.
# February 15, 2007 10:07 PM

jlynch said:

Jim,

I apologize if my post seemed like bragging. My intent was to let small and medium size businesses know that you can put together a fully integrated B2B E-commerce application for a very reasonable cost.

We do indeed sync inventory availability, provide customer specific pricing, consolidated order history and open order status as well as open and closed invoice status. And we NEVER rekey an e-commerce order into our ERP system. We use BizTalk Server to transform and transport these orders to our ERP system running on AIX. Most of this functionality is built into Commerce Server 2007, BizTalk Server 2006 and SQL Server 2005. And you know what, it's not rocket science!

If you still have doubts take a look at the case studies published by MSFT on how we did this or better yet, send me an email (jeff.lynch@nospam.gulfcoastseal.com - just remove the nospam) with your contact information and I'll call you to discuss the details.

http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=49807

http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=50272

http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=50856

Once again, this is not bragging and I'm not blowing smoke. It is very very possible for small and medium size companies to grow their business through e-commerce. You don't have to be an Amazon.com to benefit and it doesn't have to cost millions to accomplish.

Jim, thanks again for your comments and for reading my blog!

# February 16, 2007 9:00 AM

Kevin said:

Jeff, Our company is looking at Commerce Server 2007 for our B2C web sites. We'd run 2-3 web servers and a 2 server SQL cluster in a primary/failover mode, so that only one SQL server would be active at a time. If each server has two CPUs, what licensing costs would we expect, and what are the minimum hardware requirements for each server?
# February 16, 2007 10:58 AM

jlynch said:

Kevin,

All my experience is in B2B scenarios where it's very straight-forward to determine the maximum number of concurrent users and the size and number of catalogs to be presented. B2C scenarios are an entirely different animal and it's difficult to determine what the hardware needs are.

One resource is the CS2007 Performance guide which can be downloaded from the link below:

http://www.microsoft.com/downloads/details.aspx?FamilyId=E79691F0-BE0F-40A6-940C-5D3A679C5526&displaylang=en

As for licensing, CS2007 is sold  on a per processor basis so you would need a license for each cpu. SQL can also be purchased this way. We buy our server hardware and MSFT licenses through Dell and they are very good at helping size and select the right hardware and software licenses.

# February 16, 2007 12:23 PM

Husain Jagmag said:

Hi, I would like to understand better what the costs are JUST for a CS implementation in different production environments ? As i understand, CS2007 requires 1 license (Standard / Enterprise) per processor on every server it is installed. Also, it requires a Windows Server 2003 license Also, it would needs a SQL Server 2K / 2K5 license (But this may be shared if i already have my application backend as SQL Server 2K/ 2K5) Also, what about differnent scenarios where CS may be installed on Web servers or used as a middle tier ? Any inputs / references regarding this ? Thanks, Husain J
# March 8, 2007 4:32 AM

jlynch said:

Husain,

There is a great Commerce Server web page that explains the pricing structure perfectly.

http://www.microsoft.com/commerceserver/howtobuy/production.mspx

Each web server in a farm (or any middle tier server hosting the Commerce Server bits) requires a per-processor license of CS2007. The exception to this is the server which hosts the new Commerce Server BizTalk Adapters. This only requires a BizTalk Server 2006 per-processor license. Both Commerce Server 2007 and BizTalk Server 2006 require SQL Server 2000 or 2005 as their database engine so a SQL Server per-processor license is also required. Of course, all servers require a Windows Server 2003 license as well.

Hope this helps!

Jeff

# March 8, 2007 7:54 AM

Nazim said:

Jeff, In order to implement a B2C site with roughly 100-500 customers hitting at a time, what kind of hardware infrastructure would be required to implement the B2C site. Nazim
# April 11, 2007 7:27 AM

jlynch said:

One resource is the CS2007 Performance guide which can be downloaded from the link below:

http://www.microsoft.com/downloads/details.aspx?FamilyId=E79691F0-BE0F-40A6-940C-5D3A679C5526&displaylang=en

Jeff

# April 11, 2007 7:58 AM

martin said:

I've found the commerce server software extremely cost effective for a number of B2C and B2B sites, with no need to purchase the enterprise version of CS or SQL, that's even with the sites having 3-400k products on them. The new hardware we bought for our latest B2B will support $70M + a year, and has so much spare capacity that we're consolidating a couple of older B2C sites onto the same system. All we're using is 2 app servers, and 2 DBs in fail over. Nazim, our first B2C site was hosted on a dual 933Mhz processor machine running both SQL, and MSCS and this supported 500 concurrent users, around $20M in sales a year.
# June 12, 2007 1:09 PM

martin said:

I've found the commerce server software extremely cost effective for a number of B2C and B2B sites, with no need to purchase the enterprise version of CS or SQL, that's even with the sites having 3-400k products on them.  The new hardware we bought for our latest B2B will support $70M +  a year, and has so much spare capacity that we're consolidating a couple of older B2C sites onto the same system.  All we're using is 2 app servers, and 2 DBs in fail over.

Nazim, our first B2C site was hosted on a dual 933Mhz processor machine running both SQL, and MSCS and this supported 500 concurrent users, around $20M in sales a year.

# June 12, 2007 1:09 PM

jlynch said:

Martin,

Thanks for the comment and supporting evidence!

Jeff

# June 12, 2007 1:15 PM

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