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  1. #1
    WHT-BR Top Member
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    [EN] Wal-Mart to vendors: get off AWS

    To do business with Wal-Mart, the retailer requires some tech providers to build the services on AWS cloud rivals

    Wal-Mart keeps most of its data on its own servers and uses services from AWS competitors, such as Microsoft Corp.’s Azure.



    By Jay Greene and
    Laura Stevens
    June 21, 2017

    The battle between the King Kong and Godzilla of retail has moved into the cloud.

    Wal-Mart Stores Inc. is telling some technology companies that if they want its business, they can’t run applications for the retailer on Amazon.com Inc's leading cloud-computing service, Amazon Web Services, several tech companies say.

    Amazon’s rise as the dominant player in renting on-demand, web-based computing power and storage has put some competitors, such as Netflix Inc., in the unlikely position of relying on a corporate rival as they move to the cloud.

    Wal-Mart, loath to give any business to Amazon, said it keeps most of its data on its own servers and uses services from emerging AWS competitors, such as Microsoft Corp.’s Azure.

    Wal-Mart uses some tech vendors’ cloud apps that run on AWS, said Wal-Mart spokesman Dan Toporek. He declined to say which apps or how many, but acknowledged instances when Wal-Mart pushed for AWS alternatives.

    “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,” he said, adding that it’s a “small number.”

    An Amazon spokeswoman referred to Wal-Mart’s moves as attempts to “bully” tech suppliers. “Tactics like this are bad for business and customers,” the spokeswoman said.

    Snowflake Computing Inc., a data-warehousing service, was approached by a Wal-Mart client about handling its business from the retailer, Chief Executive Bob Muglia said. The catch: Snowflake had to run those services on Azure.

    “They influence their vendors, which has influence on us,” Mr. Muglia said of Wal-Mart.

    The San Mateo, Calif., company had been developing an Azure offering, and “Wal-Mart has expedited our work,” said Mr. Muglia, a former senior Microsoft executive. Snowflake won the business from Wal-Mart’s client.

    Other large retailers also have requested, as Wal-Mart did, that service providers move away from AWS, according to technology vendors that work with retailers.

    Retailers “are all very particular, and some are more particular than others,” said Kevin Howard, CEO of Adroit Worldwide Media Inc., a retail-technology provider that works with sensitive data including automated inventory tracking and provides pricing-content management. “There are retailers that have specifically requested that we sit on Azure,” he said, declining to name them.

    Amazon said a number of retailers it competes with use AWS, such as GameStop Corp.

    Wal-Mart and Amazon have sparred for years. Last week, Amazon sent shockwaves through the grocery industry—one of Wal-Mart’s biggest businesses—by announcing a $13.7 billion deal to buy Whole Foods Market Inc. That came after Wal-Mart in recent years slashed grocery prices in part to staunch an Amazon’s online incursion into the business. More recently, Amazon lowered its Prime membership fee by nearly half for people who obtain government assistance, targeting a Wal-Mart stronghold.

    Their cloud battle takes aim at the financial advantage AWS gives Amazon. The company’s global retail business operates on thin margins, but they are offset by the enormous profits AWS generates. In the first quarter, AWS posted $890 million in operating income, accounting for 89% of overall operating income, even as AWS’s $3.66 billion in net sales accounted for just 10% of the company’s total.

    The notion AWS supports Amazon’s retail business is incorrect, the spokeswoman said, citing the company’s operating profit in its North American retail business.

    While Wal-Mart’s efforts aren’t likely to staunch AWS’s growth, it could boost rivals.

    “People jump through hoops to do business with Wal-Mart all the time,” said Robert Hetu, an analyst with the research firm Gartner Inc. “That should absolutely accelerate the competition from Azure.”

    It has, Microsoft said. “The nudge from Wal-Mart has been pretty consistent,” said Judson Althoff, executive vice president in charge of Microsoft’s global sales to business customers.

    Microsoft had been the primary provider of cloud infrastructure to Jet.com Inc., the online retailer Wal-Mart bought for $3.3 billion last September. The retail giant named Jet’s founder as its e-commerce chief. Today, Wal-Mart is among the largest users of Azure, Mr. Althoff said.

    The fight helped it get cloud business from the data-analytics company Nielsen Co., he added. “That’s a direct customer that came because of Wal-Mart,” Mr. Althoff said.

    Lofty Labs, a software-development firm in Fayetteville, Ark., worked with a retail-analytics consulting company to build cloud-based forecasting tools for Wal-Mart. To win the business, Lofty Labs had to develop the application for Azure.

    “That was a deal breaker,” Lofty Labs President Casey Kinsey said. The service is the only one Lofty Labs ever developed to work on Azure. “Everybody knows that Wal-Mart will not play ball with you if you use AWS.”

    https://www.wsj.com/articles/wal-mar...oud-1498037402
    Última edição por 5ms; 21-06-2017 às 15:57.

  2. #2
    WHT-BR Top Member
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    The battle between the King Kong and Godzilla of retail has moved into the cloud.
    "Walmart is still bringing in more revenue than any other company period. $482B. That’s ½ trillion dollars. Looking at the Gross Domestic Product of entire countries (all the finished goods and services produced by the country in a year), Walmart revenue when compared to country GDP would place just slightly behind Poland and well ahead of Belgium. A truly staggering number."

    [EN] James Hamilton: Top 50 corporate revenue


    King Kong vs Godzilla?

    Não estão na mesma liga.

    Amazon está na lista -- US$ 400 bilhões atrás -- na posição 44.

    A Walmart fatura em 1 ano o que a Amazon hoje levaria 5 -- lembrando ainda que a Amazon jamais pagou dividendos.

    Na Formula 1, a Amazon estaria 4 voltas atrás mas os chineses estão no retrovisor dela


    BTW James Hamilton é VP da AWS.
    Última edição por 5ms; 21-06-2017 às 20:32.

  3. #3
    WHT-BR Top Member
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    Dec 2010
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    Wal-Mart vs Amazon

    Bob Ciura
    January 7th, 2017

    The Internet changed the world. Nowhere is this more evident than in the retail industry, where Amazon.com (AMZN) seems to be unstoppable.

    Amazon is racking up revenue growth and taking market share at a torrid pace. Consumers love the convenience of at-home shopping, often at lower prices than physical retailers can offer.

    For evidence of Amazon’s success, look no further than its share price. Amazon stock has skyrocketed 330% in the past five years.

    But therein lies the problem, at least for income investors. Amazon stock does not pay a dividend, and never has.

    By comparison, Wal-Mart is one of only 50 Dividend Aristocrats. These are stocks with over 25 years of consecutive dividend increases that are also members of the S&P 500. You can see the entire list of all 50 Dividend Aristocrats here.

    Wal-Mart has raised its dividend each year for 43 years in a row. The company is one of the 10 most owned dividend growth stocks among dividend growth investors.

    For those looking to gain exposure to the retail industry, this article will discuss four reasons why I prefer Wal-Mart Stores (WMT) over Amazon.

    Reason #1: Dividends

    The most obvious advantage that Wal-Mart offers to income investors is its dividend. Wal-Mart has an impressive dividend growth history. It paid its first quarterly dividend in 1974, at a rate of a nickel per share.

    Its dividend has grown ten-fold in the span of those 43 years. Today, Wal-Mart pays $0.50 per share each quarter. Its $2 per-share annualized payout provides a 2.9% dividend yield based on its current share price.

    To be sure, Amazon stock has richly rewarded its shareholders. The main reason why Amazon stock has gone on such a huge rally over the past several years, is because its revenue growth has exploded.

    From 2011-2015, Amazon’s revenue grew at a 17% compound annual rate. According to the company, Amazon was the fastest company in history to reach $100 billion in annual revenue.

    But Amazon has to spend a great deal in order to generate this revenue growth. One of the most appealing parts of shopping on Amazon is that products are often cheaper than at brick-and-mortar stores.

    Amazon under-cutting competitors on price allows it to take market share, at a cost to margins. This is why Amazon does not pay a dividend.

    Reason #2: Profitability

    The reason why Wal-Mart is such a strong dividend payer is because of its profitability. Wal-Mart is much more consistently profitable than Amazon, which only recently achieved positive earnings-per-share.

    Wal-Mart has significantly higher margins than Amazon.

    For example, Wal-Mart earned net income of $9.9 billion, and $354.94 billion of revenue, through the first three quarters of 2016. As a result, Wal-Mart’s profit margin was 2.8% over the first nine months of the year.

    Meanwhile, Amazon earned net income of $1.6 billion, on $92.23 billion of revenue, in the same period. Amazon’s profit margin was 1.7% in the same period.

    This demonstrates how much more profitable Wal-Mart is than Amazon. Put differently, Wal-Mart earns approximately 65% more profit for every dollar of sales. And margins matter.

    Wal-Mart is so highly profitable that it can also repurchase its own stock. As of the end of the third quarter, Wal-Mart utilized approximately $8.7 billion of its current $20 billion share repurchase authorization.

    Lowering its share count eases the financial burden of Wal-Mart’s dividends.

    But Amazon does the opposite; it is issuing more shares.

    Source: Q3 Earnings presentation, page 6

    This is dilutive to shareholders.

    Amazon needs to reinvest huge financial resources back in the business, in order to keep growing revenue. This has worked well, in the sense that its revenue has soared.

    But there is not much left over to pay dividends. By the same token, Wal-Mart paid $1.5 billion of dividends to shareholders last quarter—almost as much as Amazon earned in profit through the first three quarters combined.

    Reason #3: Valuation

    Wal-Mart is a more suitable stock than Amazon because of its cheaper valuation. Value investors look for stocks trading at or below their intrinsic value. This is the approach that made Warren Buffett one of the most legendary investors of all time.

    Buying stocks when they’re cheap can help provide investors with a margin of safety. Over-valued stocks can come crashing down if their growth rates do not keep up with expectations.

    Wal-Mart provides a margin of safety, since its stock is reasonably valued. Wal-Mart trades for a price-to-earnings ratio of 15.

    This means that, at the current share price, investors are paying $15 for every $1 of earnings.

    For its part, Amazon stock trades for a price-to-earnings ratio of 182. Amazon’s lofty valuation does not provide much of a margin of safety.

    Expectations are very high for Amazon. This has done wonders for the share price, and investors have reaped the rewards. But it also raises the bar going forward.

    If Amazon does not keep growing revenue fast enough to meet expectations, investors could rush for the exits.

    By comparison, Wal-Mart’s rock-solid profitability provides a firmer floor for its earnings, and by extension its share price.
    Reason #4: Wal-Mart Fights Back

    The final reason why I prefer Wal-Mart over Amazon is that things might get tougher for Amazon going forward.

    Amazon rose to prominence due to the boom in Internet retail. But this could be about to change, as Wal-Mart is moving swiftly into e-commerce to make up for lost time.

    Wal-Mart’s e-commerce sales more than doubled from 2013-2016.

    Wal-Mart’s global e-commerce sales rose 20% last quarter. Last quarter, Wal-Mart’s total comparable sales rose 1.2%; e-commerce represented 0.50% of this growth.

    E-commerce will be an emerging growth catalyst for Wal-Mart moving forward. Its pursuit of Amazon in this area will be supplemented by its $3.3 billion acquisition of Jet.com.

    Source: 2016 Investor Meeting Presentation, page 4

    Final Thoughts

    Amazon stock has a market capitalization of $378 billion, while Wal-Mart’s market cap is $210 billion. This might make it seem like Amazon dominates Wal-Mart in retail, but that really isn’t true.

    Instead, the truth is that Wal-Mart generates nearly four times as much revenue as Amazon, and more than six times as much profit.

    Amazon’s market capitalization is the result of its soaring share price. But when a share price takes off like this, expectations rise as well.

    Going forward, Wal-Mart has the financial resources to compete directly with Amazon in e-commerce, and it’s not backing down.

    Wal-Mart may not be as exciting as Amazon, but it offers a high level of profitability and a rock-solid dividend. This makes it the better pick for income investors and highly ranked stock using The 8 Rules of Dividend Investing.

    http://www.suredividend.com/wal-mart-vs-amazon/

  4. #4
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010
    Posts
    17,329

    Resumo

    “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,” said Wal-Mart spokesman Dan Toporek, adding that it’s a “small number.”

    An Amazon spokeswoman referred to Wal-Mart’s moves as attempts to “bully” tech suppliers.

    Snowflake Computing Inc., a data-warehousing service, was approached by a Wal-Mart client about handling its business from the retailer. The catch: Snowflake had to run those services on Azure.
    Última edição por 5ms; 21-06-2017 às 21:18.

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