The Australian head of Amazon Web Services dismissed the suggestions that local retailers will remove from the company's cloud services after the arrival of Amazon.com.au in the country.
Paul Migliorini, CEO of AWS at A / NZ, told CIO Australia that major retailers want access to the best cloud technology and leave the platform to prevent their biggest competitor "not make rational sense. "
Amazon Australia was launched this morning, ending almost a year of exaggerations and speculation about the timing of the release.
Your arrival has already had a detrimental effect on Australia's leading retailers. Shares in Myer have fallen by 30 percent since Amazon confirmed its plans for Australia in April. Shares of electronics retailer Harvey Norman have fallen 7 percent since the announcement and JB Hi-Fi shares have fallen by 6 percent.
In the USA UU., Walmart, the largest retailer in the country, and Target, the second largest, are avoiding Amazon's cloud computing arm in an effort to avoid indirect financing from a rival.
Walmart, although predominantly a Microsoft Azure customer, has said, according to a Wall Street Journal report, that its technology partners are withdrawing their applications from AWS.
"Our suppliers have the option to use any cloud service provider that meets their needs and those of their customers," a Walmart spokesperson later said.
"It should not be a great surprise that there are cases where we would prefer that our most confidential data is not on a competitor's platform."
Amazon responded by calling Walmart a "bully."
Meanwhile, Target is reducing the use of AWS, according to a CNBC report, with a source saying the retailer was planning to aggressively move e-commerce activities, mobile development and operations outside of AWS to end of the year and until 2018.
Although Target did not make any statement 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 independent of the cloud, which means that it only allowed us to do updates, or 'deploy' to a single cloud provider. "
Migliorini said that AWS did not expect a similar reaction locally, although customers had been asking about the connection between Amazon's e-commerce and the arms of the cloud.
"We do not see the two as related, obviously, AWS and Amazon.com run separately and many of Amazon.com's competitors are excellent customers of ours, so we run very, very separately … But I've I heard that and customers ask questions rightly, you know, what's the link? "Migliorini counted to CIO Australia on the sidelines of the AWS Re: Invent conference in Las Vegas the week pbad.
AWS operates as a subsidiary of Amazon.com with an income execution rate of US $ 18 billion and a 42 percent annual growth rate. It is, by far, the market leader in the public cloud with a 44 percent market share, according to Gartner.
In the past few quarters, AWS's operating profits have covered the operational losses suffered by Amazon's e-commerce business, which gives Amazon the ability to expand aggressively and operate at tight margins.
Migliorini said that many Amazon direct competitors in Australia used the AWS platform to make a big profit.
"What we found is that we have a lot of excellent retailers that are working very well on our platform, people like Kogan and The Iconic who are actually direct competitors of Amazon.com and what they tell us is, what what matters is that we continue to iterate at the right speed so that they can focus on their differentiation capabilities while doing undifferentiated work, "added Migliorini.
"And as long as we continue to do that, they will continue to work with us."
When asked if the arrival of Amazon.com would trigger a change to AWS, The Iconic online fashion store confirmed CIO Australia that "Yes, we are currently in AWS, but we do not want to comment further at this stage."
Kogan.com – which last year acquired Dick Smith's online business – did not respond to a request for comments in the moment of publication.
Australian retailer Harvey Norman, whose president, Gerry Harvey, has been a vocal opponent of Amazon, was named customer of AWS when the company launched two availability zones in Sydney in 2012.
A spokesperson confirmed that Harvey Norman used AWS predominantly for its overseas operations, with Microsoft Azure primarily used in Australia.
"We have no planned changes for the current time, but like all third-party services we review them regularly," said spokesman CIO Australia .
When asked about the movements made by US retailers UU., They added: "It's a very understandable thought, why would you want to prop up a competitor?
Migliorini of AWS said that local retailers were sophisticated enough to see the benefits of staying with the cloud company.
"What we see is that Australian retailers are really sophisticated users of technology, so they can go deeper than that thin sheet and understand what the best technological option is, they can go beyond those irrational emotional decisions," He said.
In any case, if anyone tried to abandon AWS as some did in the USA. UU., It would have little impact on the business, said Migliorini.
"Just look at the numbers, Amazon.com is a global corporation of over $ 150 billion, is it really going to make a big difference if a retailer in Australia uses AWS in terms of helping Amazon.com or not? It just does not make rational sense. "
The author traveled to AWS Re: Invent 2017 in Las Vegas as a guest of Amazon Web Services.
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Tags Cloudbusinesstechnologycloud computingfinanceASXJB HiFiamazonHarvey NormanAmazon Web Servicesdick smithamazon.comLas VegasmyerAWSJeff BezosKogan.comShare priceAndy JbadyReinventAmazon.com.auThe Iconic