Target is plotting a Big Move away From AWS as Amazon Takes Over Retail

Target is struggling to compete with Amazon in retail, but finds other ways to defend itself.

The discount retailer reduces the use of Amazon Web Services, according to sources familiar with the matter, as the company aims to better control its infrastructure and stop financing its main rival. The purchase of Whole Foods by Amazon is the latest sign of the growth depth of the e-commerce giant in all forms of retail.

Microsoft Azure is one of the cloud providers competing with nab Target Business Cloud, sources said, who asked not to be named because the plans are confidential. Google and Oracle are strengthening their cloud offerings.

Like all big box stores, Target is disturbed by Amazon, which is selling more and more expensive and faster. Target's annual revenues are lower than five years ago, although the company sold its credit card and pharmacy business during this period, and the shares lost 23% market value in the last 12 months.

On Monday, Amazon finalized its $ 13.7 billion purchase of Whole Foods and instantly reduced store prices by more than 30 percent in fruit and organic meat. From electronics and household items to toiletries and grocery stores, Amazon is developing its inventory.

While there is little that Target can do to hamper Amazon's dominance in retail, the appearance of other cloud sellers allows the company to spend its computing and storage funds elsewhere. According to a source, Target plans to aggressively change e-commerce, mobile development and operations away from AWS until the end of the year and possibly until 2018.

A spokesman for Target said the company does not discuss the details of its dealings with vendors, but added that "we are currently using several cloud service providers and will continue to do so." An Amazon rep declined to comment.

Target hinted at its plans in October when the company said it had adopted an open source system called Spinnaker that Netflix has built to enable development teams to customize their clouds. A key component is that "Spinnaker was built to work with multiple public clouds compared to just one," Target said in an article posted on its website.

Target is not the only major retailer targeting AWS. The Wall Street Journal reported in June that Wal-Mart told its technology vendors not to run applications in the Amazon cloud and that for its own infrastructure the company uses a combination of servers and on-site services provided by Microsoft and others.

"If I use Azure or Google, I would go right after these guys," said John Vrionis, a partner at Lightspeed Venture Partners who supports the startup infrastructure. "I'm sure they could pack a convincing migration plan and these segments are probably very thirsty for it."

However, AWS has not yet seen a mass exodus.

In the second quarter, AWS controlled 34 percent of the cloud infrastructure market, covering Microsoft, IBM and Google combined, according to Synergy Research Group. Brands and stores such as Brooks Brothers, Nordstrom, Nike, Under Armor and Lululemon are AWS customers, although sources say that many retailers are considering other cloud providers.

HMRC's Switch to AWS Killed a Small UK Cloud Business

DataCentred, an exclusive British minnow, filed for bankruptcy after HMRC, its biggest client, broke a service contract in favor of an agreement with Amazon, the company recently accused by tax evasion parliamentarians.

DataCentred, based in Manchester, has signed an agreement with HMRC there for two years through the framework of the G-Cloud: its infrastructure OpenStack manages a critical system in the tax department, a contract that has supported 85% of the DataCentred invoicing.

However, The Register may reveal that six months ago, the firm was informed that the tax collector would no longer use its services because it reorganized the policy of being independent of the cloud to become an AWS fan.

DataCentred is not the only small cloud provider in the UK that has lost shares with HMRC as a result of the policy change. We know at least two more, although DataCentred appears to be the first direct victim

The company was founded by TeleCity founder Dr. Mike Kelly with £ 9 million funding from venture capitalist John Moulton and local authorities. The organization returned £ 1.2m in 2016, but sank red after losing the HMRC contract and entered the administration in August.

Readers of Reg will undoubtedly discuss the weaknesses of being overly dependent on a single customer, but also the irony of seeing HMRC pay for the services of AWS, a company sometimes criticized for its fiscal efficiency. .

Since Amazon and Microsoft set up local cloud operations in the UK several years ago, leasing storage space to other vendors in the AWS case, some Gov.uk personalities seem to have surrendered. his rhetoric of SMEs, deciding to work with technologies. giants after all.

The registry also found that the Ministry of Labor and Pensions has a policy of only purchasing public services in the Amazon cloud, Google or Microsoft. We asked the department to comment.

While there are compelling reasons for this decision, the question also arises whether Whitehall is swapping a group of major IT providers, known as "oligopoly" by former cabinet minister Francis Maude. - for another.

Such a move also seems to make redundant the G-Cloud IaaS, which has been put in place to provide small cloud service providers in the UK a level playing field for short-term government contracts.

The registry asked HMRC how their decision was in line with the government's promise to award contracts to SMEs; Has the department risked creating a new lockout by doing so? and whether the ministry can be perceived as a reward for corporate misconduct, because Amazon has often been criticized for avoiding taxes.

An HMRC spokesperson said: "We have discussed our long-term plans to provide cloud computing and what is best for our customers.

"The hyper-scale cloud technology is available again in the UK and the increased capacity of the cloud provides more robust services at a significantly lower cost to the taxpayer."

The ministry stated that it makes decisions about its suppliers through a fair and open process, and in accordance with the rules of the public service. Financial audits and regular tax compliance will be carried out as part of this process.

The European Commission recently ordered Amazon to repay € 250 million (£ 222 million) for illegal and unfair state aid from Luxembourg.

The Amazon group denied receiving special treatment and paid the full amount of the tax in accordance with international tax laws and Luxembourg.

The company, headed by Jeff Bezos, has also previously said it pays for all required taxes in the UK and in all countries where it operates.

"The corporate tax is based on profits and not on revenues, and our earnings have remained low as retail is a highly competitive and low margin business and we continue to invest heavily.

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AWS Expands DOD IL4, Authentication Services

Agencies, military units and commandos now in the Ministry of Defense have more tools in their arsenal when it comes to integrating cloud services into daily operations.

The Defense Information Systems Agency has granted a temporary authorization for Amazon Web Services GovCloud to offer more than a dozen new cloud service applications under Tier 4. Impact AWS announced on the last job a blog entry on 26 of April.

In 2016, AWS has received DISA Provisional Authority to provide two services: Amazon's Amazon Elastic Compute Cloud and Simple Storage Service. The new IL-4 authorizations increase the number of bids to include AWS CloudFormation, Amazon Key Management Service, and Amazon redshift.

"CloudFormation is very important because it is an orchestration technology that allows you to automate, so rich, how to withstand a cloud environment and automate everything flows," said Mark Ryland, director of architecture solutions and chief architect of the World public sector by AWS teams. "[I] makes it less a manual procedure to use a cloud computing platform."

Although the DISA IL-4 permit facilitates the use of new services by AWS Department of Defense customers, this does not mean that they are automatically available for agency use.

"This announcement comes from a core group within the Department of Defense that created temporary permits, which means other groups within the Department of Defense can use," said M. Ryland. Users of the Department of Defense GovCloud "can take the document and analysis and granting the definitive authorization to operate."

In a separate blog post, AWS also announced multi-factor authentication capabilities for hardware-based GovCloud.

AWS has joined SurePassID, another digital security company, to implement the initiative, which will require users who log on to GovCloud to provide their user name and a password and authentication token code generated by the SurePassID.

The MFA tabs are stored in a different environment than the identity and access management in the GovCloud during the authentication process.

Ryland said that it is not supposed to replace the current GovCloud access cards through common access cards and personal identity verification cards. Instead, authentication-based tokens "fill the void" for agencies wishing to use GovCloud said Ryland. "This allows them to use a hardware token, but still get support from the MAE, which could be applicable in certain use cases."

Ryland describes the new features of the AMF plus a "edge case as a new critical capability" for GovCloud customers.

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