Is Wal-Mart Restricting Vendors from Using Amazon Web Services?

Big box retailer Wal-Mart is really trying to make it in the online world and they are letting it be known that they will not be bullied around.  Apparently the company is warning various tech firms that if they want to keep business ties with the largest retailer in the world, they are advised to not run applications through Amazon’s cloud platform, Amazon Web Services.  This has been confirmed by several tech firms, as told to the Wall Street Journal.

Wal-Mart, of course, aims to clarify: spokesperson Dan Toporek explained, in an email to the Wall Street Journal, “Our vendors have the choice of using any cloud provider that meets their needs and their customers needs.  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.”

But while that might seem a bit harsh, it appears that Wal-Mart may not be the only company to feel this way.  Other larger retailers are also making the request that service providers do not use AWS, too.  Of course, Amazon has many conflicts of interest in this area business, as several of its competitors already use AWS.

And this is really still the beginning of the growing competition between Wal-Mart and Amazon.  For example, Amazon just bought grocery retailer Whole Foods, which will give the online company an even bigger presence in the physical retail world. The move $13,7 billion move would, of course, help to strengthen Amazon’s Prime Pantry and AmazonFresh food delivery services.  Wal-Mart, of course, has been working feverishly to build an online presence, particularly making an impact with their purchase of Jet.com.

So the race, as they say, is on.

Now, it is important to note that Wal-Mart does not actually directly compete with Amazon.com in terms of cloud storage space. After all, AWS is only about 10 percent of Amazon’s total revenue; though this aspect of the company continues to grow every year.  But, if you look more deeply at the matter, telling companies that they cannot use AWS if they want to do business with Amazon will certainly hit Amazon right where it hurts.

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