Executive Briefings

Wal-Mart Asks Partners and Suppliers to Get Off Amazon Web Services

Soon after arch-rival Amazon announced plans to buy Whole Foods for $13.7bn, Wal-Mart is apparently ramping up its defense.

That acquisition takes square aim at Wal-Mart's bread-and-butter grocery business by giving the online retailer 465 new retail locations - thus a much bigger brick-and-mortar presence.

Now, Wal-Mart is telling some partners and suppliers that their software services should not run on Amazon Web Services cloud infrastructure, according to the Wall Street Journal.

The report quoted Bob Muglia, CEO of Snowflake Computing, saying that a Wal-Mart partner wanted to use his company's data warehouse service, but was told it had to run on Microsoft Azure cloud instead of AWS.

Currently, Snowflake's software runs only on AWS.

In an emailed statement, an Amazon spokesman said: “Yes, we've heard that Wal-Mart continues to try to bully their suppliers into not using AWS because they have an incorrect view that AWS is somehow supporting Amazon's Retail business."

Many suppliers are standing up to Wal-Mart on this front, he added.

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That acquisition takes square aim at Wal-Mart's bread-and-butter grocery business by giving the online retailer 465 new retail locations - thus a much bigger brick-and-mortar presence.

Now, Wal-Mart is telling some partners and suppliers that their software services should not run on Amazon Web Services cloud infrastructure, according to the Wall Street Journal.

The report quoted Bob Muglia, CEO of Snowflake Computing, saying that a Wal-Mart partner wanted to use his company's data warehouse service, but was told it had to run on Microsoft Azure cloud instead of AWS.

Currently, Snowflake's software runs only on AWS.

In an emailed statement, an Amazon spokesman said: “Yes, we've heard that Wal-Mart continues to try to bully their suppliers into not using AWS because they have an incorrect view that AWS is somehow supporting Amazon's Retail business."

Many suppliers are standing up to Wal-Mart on this front, he added.

Read Full Article