Walmart is notifying tech companies that they aren’t allowed to run apps on Amazon’s platform if they want to do business, according to a Wall Street Journal report published Wednesday.
The threats come as Amazon, once a relatively simple e-commerce company, is encroaching into Walmart’s territory with the production of grocery stores and the recent acquisition of popular retailer Whole Foods. Amazon plans on opening 2,000 brick-and-mortar locations in the next decade, and also has a more modest goal of 20 stores in the next two years. (RELATED: Amazon Looking To Block Store Customers From Checking Prices On Their Phones)
Walmart apparently doesn’t want its business partners to use Amazon’s cloud computing subsidiary, Amazon Web Services (AWS), which is steadily growing in popularity.
Cloud computing is a network of remote servers based on the internet that allows almost all of the same technical capabilities like storage and processing data, but without the use of a personal computer or server.
Walmart uses tech suppliers’ apps that run on AWS, but has tried to convince them to use another service.
“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,” a Walmart spokesperson told TheWSJ.
Amazon, though, reportedly considers Walmart’s maneuver as an effort to “bully” others from legitimately using their technology.
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