If You Can't Beat Them, Run Their Servers

from the changing-strategies dept

Business Week looks at the latest plans at Amazon.com to move towards profitability. It's no secret that they're looking more and more at outsourcing for other companies, rather than just relying on their own retail store. The article also compares them to GSI, which is looking increasingly like they could be a major Amazon competitor. They don't expect Amazon to ever stop running its own store, but they might cut back on the categories they offer. Amazon can just focus on books, music, and videos to improve their own technology, and instead of beating all the department stores and retail chains at their own game, Amazon will just run their servers. Meanwhile, Fortune is running their own, competing, article saying that these deals won't actually do very much to help Amazon's bottom line. This article brings up the very valid point that if e-commerce ever gets big enough for the major retailers, they may end up bringing it back in house, and ditching the deals with Amazon and GSI.

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