With the rivalry between Google and Amazon hitting new heights, the competition between the two technology firms is sure to become even more tense thanks to a recent decision by JDA Software.
The provider of supply chain management software has reportedly chosen the Google Cloud over Amazon to host its SaaS for retailers, a move experts said Wednesday (June 10) exemplifies Amazon’s strenuous relationship with its sellers.
According to Retail Systems Research LLC managing partner Nikki Baird, software vendors that use Amazon Web Services to provide access to their tools have begun to realize that retail customers aren’t to happy with it. “Retailers … see Amazon Web Services as essentially subsidizing the low prices Amazon is able to offer on products,” she said in an interview with The Wall Street Journal.
That may be why JDA has avoided Amazon and instead gone with Google Cloud to offer its supply chain management software. While JDA executive vice president of shared technology John Savari did not comment specifically on the Google-Amazon rivalry, he said that Google “came out as not only the most scalable and flexible technology platform,” and that it also offered “no conflict of interest with our customer base in terms of competitive offerings.”
JDA’s services involve the aggregation and analysis of Big Data stemming from sales information, weather, and social media chatter to provide retailers with real-time access to their supply chains.
Despite a recent shift in sentiment against Amazon Web Services, reports said Amazon still holds the lead by far in providing infrastructure services, with 29 percent of the market. Google has just 5 percent, but has been experience much more rapid growth in this segment than Amazon has.
And while JDA holds 4.4 percent of the supply chain SaaS market, reports also said that the industry is expected to rise immensely. Gartner researchers calculated a 10.9 percent growth in the industry last year, resulting in a $9.9 billion valuation.
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