As Amazon continues to dominate the 3rd party server market with its powerful Amazon Web Services offering more computing and data storage, Walmart has told its tech partners to stop using their competitor’s cloud-based storage and servers.
For a long time now, Walmart and Amazon have been in intense direct competition, fighting tooth and nail for consumer dollars. Recently, the competition between the two has increased. Since Amazon’s acquisition of Whole Foods Market, which puts the two giant retailers head to head in the grocery business, and Walmart’s acquisition of several online retailers, like Jet.com, Modcloth.com, and Bonobos, which offers a challenge to Amazon’s clothing services like Prime Wardrobe and Amazon Fashion, things are more heated than ever.
Now, Walmart wants its technology partners to abandon Amazon Web Services for its competitors, according to The Wall Street Journal. A Walmart spokesperson confirmed that Walmart wants their tech suppliers to use other servers, citing a concern for privacy and confidential data security. Walmart doesn’t want their private company information to be stored on servers owned by or possibly accessed by a major competitor.
Amazon Web Services, which has a lion share of the market making up 44% according to Synergy Research Group, has called Walmart’s tactics a way of bullying suppliers away from Amazon and forcing them to use Microsoft’s Azure and other competitor services.
For its own digital storage and servers, Walmart uses their own bank of servers with supplemental cyber support from the small market of Amazon’s competing services.
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