The Australian director of Amazon Web Services dismissed suggestions that local retailers would pull out of the company's cloud services after Amazon.com.au arrived in the country.
Paul Migliorini, AWS CEO at A / NZ, told CIO Australia that large retailers want to have access to the best technology in the cloud and leave the platform to prevent their biggest competitor from making rational sense.
Amazon Australia was launched this morning, ending almost a year of exaggerations and speculation on the launch schedule.
His arrival has already had a negative effect on major Australian retailers. Myer shares have fallen by 30% since Amazon confirmed plans for Australia in April. Harvey Norman's electronics retailer's shares have fallen 7% since the announcement and JB Hi-Fi shares have dropped 6%.
In the United States UU., Walmart, the largest chain of retail stores in the country, and Target, the second largest, avoid the computer arm of Amazon in order to avoid the indirect financing of a competitor.
Walmart, though primarily a Microsoft Azure customer, told its technology partners, according to a Wall Street Journal report, to remove their applications from AWS.
"Our vendors have the ability to use any cloud provider that meets their needs and those of their customers," said a spokesperson for Walmart.
"It should not be a big surprise that there are cases where we would prefer our most confidential data not to be on a competitor's platform."
Amazon responded by calling Walmart a "bully".
At the same time, Target is reducing the use of AWS, according to a CNBC report, and one source said the retailer planned to aggressively move e-commerce, mobile development, and operations outside of AWS to the marketplace. end of the year and until 2018
Although Target made no statements about the reports, in a late 2016 blog post about its adoption of the open source platform, Spinnaker noted that "the old system was not cloud independent, which means that it only allowed us to update or "implement." to a single cloud provider.
Australian reaction?
Migliorini said that AWS did not expect a similar reaction at the local level, although customers inquired about the connection between Amazon's e-commerce and cloud weapons.
"We do not see the two as related, of course, AWS and Amazon.com work separately and many of Amazon.com's competitors are great customers, so we run very, very separately ... But I heard that and Customers are asking questions rightly, you know, "what's the link?" Migliorini told CIO Australia at the AWS Re: Invent conference in Las Vegas last week.
AWS is an affiliate of Amazon.com with an income of 18 billion US dollars and an annual growth rate of 42%. He is by far the market leader in the public cloud with a market share of 44%, according to Gartner.
Over the last few quarters, AWS operating profits have covered the operating losses suffered by Amazon's ecommerce business, giving Amazon the ability to aggressively grow and operate at the same time. tight margins.
Migliorini said many of Amazon's direct competitors in Australia were using the AWS platform to make big profits.
"What we're seeing is that we have a lot of big retailers that work very well on our platform, people like Kogan and The Iconic who are direct competitors of Amazon.com and what they tell us is that we continue to iterate at the right speed so that they can focus on their differentiating abilities while doing undifferentiated work, "added Migliorini.
"And as long as we continue to do that, they will continue to work with us."
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