20 Jun

Amazon’s Big Acquisition: What It Means for The Cloud

Amazon’s Big Acquisition: What It Means for The Cloud

Amazon and Whole Foods

The Amazon Web Services “Takeover”

This past Friday, June 16, 2017, Amazon announced that it was buying Whole Foods Market for $42 a share in an all-cash deal, valuing the company at $13.7 billion.

Amazon founder and CEO, Jeff Bezos, said in a press release Friday morning, “Whole Foods Market has been satisfying, delighting, and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.” Whole Foods Market’s co-founder and CEO, John Mackey, continued on to say, “This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience, and innovation to our customers.”

This exciting acquisition doesn’t just present new valued opportunities for Whole Food’s shareholders, however. It could also mean good news for The Cloud business; namely for Amazon Web Services (AWS). Currently, Whole Foods Market is using Microsoft’s Cloud computing technology, the rival to AWS. But in acquiring Whole Foods, Amazon isn’t just buying the giant upscale grocery chain, it’s also taking ownership of a company using their rival Cloud-computing technology.

Does this mean that they can and will replace the current Microsoft Cloud-computing technology with their own? Amazon’s Jeff Bezos didn’t mention anything about Cloud in the press release distributed on Friday, but in buying Whole Foods Market, Amazon could be making a play to halt Whole Foods Market from buying more Microsoft Azure Cloud Services, and in turn adopt AWS’ Cloud offerings. AWS could certainly benefit from an alliance with Whole Foods Market as it works to cozy up to legacy enterprises.

Supplying food products to and from 465 retail locations spanning North America and the U.K. is no easy feat, but AWS’ Cloud computing services could provide significant cost savings in this space. Amazon Web Services, which is on the road to selling $14 billion worth of service offerings this year isn’t hurting for business, but they could see a huge return from bringing Whole Foods Market on as an in-house customer.

Our Expertise

We’ve seen Amazon as the e-commerce giant of today surpass its competitors by leaps and bounds over the last decade, and we look forward to seeing how this new merger with Whole Foods Market continues to shake out! Are you interested in working with a value-added reseller to partner with for your migration to the Cloud and adoption of AWS? Shoot us an email at info@tCognition.com, send us a DM on Twitter, or give us a call at 617-357-4636 to learn more about our Cloud computing offerings.

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