|Kroger is using Google and Microsoft clouds to avoid paying Amazon|
Ari Levy | @levynews
- Kroger is splitting its cloud investments between Microsoft and Google.
- The company joins other big traditional commerce companies that are trying to avoid AWS.
- Kroger's CIO said there's no reason "to help grow that business for them."
Published 12:21 PM ET Wed, 8 Nov 2017 Updated 1:03 PM ET Wed, 8 Nov 2017
As Kroger moves to cloud computing, the nation's largest grocery store chain is sending millions of dollars to Microsoft and Google.
But not to Amazon.
"For obvious reasons competitively, it doesn't make sense for us to do a ton to help grow that business for them," Chris Hjelm, Kroger's chief information officer, told CNBC in an interview.
With Amazon's retail business pushing into more industries and competing more directly with a growing number of companies, Amazon Web Services is starting to experience a backlash. Kroger is joining the likes of Wal-Mart and Target in finding other vendors to handle their massive workloads for their digital and e-commerce offerings. Alphabet said in its latest earnings release that Kohl's has moved to Google's cloud.
In a blog post on Monday, venture capitalist Glenn Solomon from GGV Capital underscored how pervasive this has become. Solomon said several of his firm's portfolio companies that use AWS have been asked by retail clients to "provide a mirrored service on another cloud because they'd prefer not to have their data stored with Amazon given competitive fears."
For cloud infrastructure as a whole, AWS controls 34 percent of the market, followed by Azure at 12 percent, IBM at 8 percent and Google at 5 percent.
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