Get off Amazon cloud

Henrietta Strickland
June 23, 2017

Walmart warned some tech companies if they want to do business, they can't run the retailer's applications on Amazon's cloud-computing platform, Amazon Web Services, sources told the Journal.

"It shouldn't be a big surprise that there are cases in which we'd prefer our most sensitive data isn't sitting on a competitor's platform", Wal-Mart spokesman Dan Toporek told the WSJ.

The standoff between Wal-Mart and Amazon benefits Microsoft, which gets business from vendors wanting to do anything to please Wal-Mart.

Wal-Mart has recently gotten accused of a backdoor deal that involves bullying IT companies into shunning their online web service, this report comes at a time where Amazon has recently bought Whole Foods to expand its service to online grocery shopping and a Nike's deal where they will be able to sell their sports gear on the site.

Meanwhile, Amazon.com keeps pushing into Canada by beefing up hiring and expanding its profitable data center business north of the border, Bloomberg News reported. After all, AWS is only about 10 percent of Amazon's total revenue; though this aspect of the company continues to grow every year.

"They influence their vendors, which has influence on us", CEO Bob Muglia told the paper, speaking of Wal-Mart. "Tactics like this are bad for business and customers", the spokeswoman said. The company's global retail business operates on thin margins, but they are offset by the enormous profits AWS generates.

While Walmart's efforts may not stunt the growth of AWS, they are certainly helping their competitors. The retail giant named Jet's founder as its e-commerce chief. Alphabet declined to comment on whether they had the seen the same effect with sales of Google Cloud, the current number 3 cloud-infrastructure provider.

Lofty Labs, a software-development firm in Fayetteville, Ark., worked with a retail-analytics consulting company to build cloud-based forecasting tools for Wal-Mart.

"That was a deal breaker", one developer explains.

However, Walmart is not alone in wanting its data off AWS.

Other reports by Click Lancashire

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