DropshippingCompetition: Traditional Legacy On-Premise Solutions Legacy on-premise solutions have multiple disadvantages. • Tend to focus on fulfillment automation within a single facility and among a small network of trading partners • Require time and technical expertise to configure, deploy and maintain • Adding new trading partners is time-consuming and requires technical expertise • Architecture: multitude of point-to-point connections between retailers and suppliers instead of a network of connections that CommerceHub has built • Any updates pushed by a retailer must be installed by every single supplier • Reasons above can make on-premise legacy solutions prohibitively expensive for small suppliers. Caro-Kann Capital LLC 40