Amazon’s Australia launch hasn’t deterred local retailers from using Amazon Web Services (AWS) or created any tension, according to the cloud provider, in fact it has accelerated the technology conversation.
The direct retail competition posed by AWS parent company Amazon.com reportedly led several of America’s largest retailers including Walmart and Target to shun the cloud service provider last year and ask their vendors to do the same. Amazon responded by accusing Walmart of trying to “bully” their suppliers, according to the BBC.
Today at a customer roundtable, AWS managing director Australia and New Zealand, Paul Migliorini dismissed the notion that a similar thing would occur here and confirmed the arrival of Amazon.com hasn’t caused any tension between the cloud provider’s existing retail clients.
He told Which-50, “No we haven’t [seen it here]. There are many instances here and all over the world where retail customers of AWS are driving exceptional innovation on top of the platform and we don’t see it as an issue.”
“Amazon.com is a big customer and we build a lot of stuff for them. But everyone gets the benefit of that. Therefore we see a lot of retail customers seeking to leverage the services and innovation on the platform to drive innovation within their organisations,” Migliorini said.
According to Migliorini local and international clients like Kogan and Netflix are successfully leveraging AWS despite being in direct competition with Amazon’s retail and media service. AWS does not see the potential conflict of interests for Australian organisations “as being an issue at all”.
“In fact what we are seeing is a higher velocity from customers wanting to have more expansive innovation conversations with us at AWS and leverage the higher order capability,” he said.
Similiarly Mark Lavelle the CEO of ecommerce platform Magento, which runs a version of its software of AWS, previously told Which-50 his clients are using the ecommerce giant’s technology to compete against it.
AWS has been a cash machine for Amazon. In Q4 AWS sales surged 45 per cent year on year, generating $5.1 billion in revenue for the quarter. The cloud platform now accounts for nearly 10 per cent of Amazon’s total yearly revenue.
At the AWS’s re:invest event in Las Vegas last year, AWS CEO Andrew Jassy downplayed any possibility of spinning out its service from Amazon.
“[Amazon] has been so gracious committing whatever amounts of capital we needed to grow AWS – and its required a lot of capital so – there hasn’t been the need to do so,” Jassy said.