Recently, Walmart has been quoted as demanding that its tech partners stay away from Amazon’s cloud service in favor of staying with its own cloud service, OneOps. This tactic seems like it may be being used to wrangle Walmart’s partners into getting locked into its services, which is something that Walmart was worried that the competition, Amazon’s cloud service (AWS) would do. By making this move, Walmart is creating its own service from an internal structure that already existed.
While Amazon has been dealing in the digital world for some time now, being locked into its cloud service program is something that no one needs to worry about. However, Walmart is using this view as a reason to create OneOps and is enticing Amazon cloud users to its cloud service with it. An article at the Tech Republic suggests that since Walmart has failed to rival Amazon in the digital retail market, they are now using cloud services in a new attempt to challenge Amazon.
As stated before, this was introduced because Walmart saw the possibility of a locked-in risk with Amazon Web Services, although that risk may not seem as likely to the rest of us. Other cloud services, like Microsoft’s Azure and Rackspace, allow for information to be migrated throughout these cloud services. Walmart is just getting in on the action and probably making the threat to retain its current tech base to build on its budding cloud service.
Anything new has the potential to have flaws and bugs that need to be addressed and worked out. If the risk turns out to be real, then is Walmart’s cloud service really that good to begin with? I find it strange that a large company, who is the top offline retailer in the world, has to stoop so far as to use heavy-handed methods, such as promising a potential danger of losing business with Walmart, to get users to stay with them.
While Walmart is new to the cloud service game, Amazon is an absolute giant in this field. In certain services, Amazon far exceeds three companies combined: Microsoft, Google, and IBM. I honestly think that for being so late in the game, Walmart cannot and will not reach this sort of Goliath type success with a cloud service. Sure, it might be successful compared to Microsoft or IBM, but not with Amazon. The amazing growth and revenue from AWS are funneled back into its retail service, where Amazon finds more competition.
When digital retailing began, it was said that brick-and-mortar stores would suffer greatly, but that has not been the case. However, it is said that it’s easier for digital retailers to open offline stores than it is for offline stores to enter the digital retail market. Since Walmart has started as an offline retailer and continues to be a world leader in that market, it should focus on making successes in that field. Amazon has recently joined the offline market, which is Walmart’s domain. Here, they have the advantage over Amazon and should use that advantage instead of trying to gain traction in the digital market. While it is essential for Walmart to offer digital services and acquire digital retailers, it is not something that Walmart can win at against Amazon.