Amazon’s Biggest Competitors Team Up on the Heels of Prime Day Disaster

July 19, 2018 The TNS Group

Walmart Inc announced Tuesday they have signed a five-year agreement with Microsoft Corp to explore cloud solutions and artificial intelligence technology.

Walmart plans to use Microsoft’s current cloud solutions, such as Microsoft 365 and Microsoft Azure to make online shopping easier and faster for consumers.

This partnership could pose a significant threat to Amazon.com seeing as Walmart is Amazon’s biggest retail rival.

As part of the agreement, Microsoft will begin to migrate part of Walmart.com and Samsclub.com to Azure. The migration is part of Walmart’s plan to increase their e-commerce presence to better compete with Amazon.

The announcement was made during Amazon’s biggest shopping event of the year, Prime Day. Reports surfaced early in the event that Amazon.com and Amazon’s mobile app were experiencing issues likely costing the company millions in sales.

Many users reported that links appeared to go nowhere, the main page displayed a 404 message or that they were redirected to an error message with a photo of one of the dogs of Amazon (clever marketing Amazon!)

Unless you are a dog lover like myself and happily refreshed to meet the many dogs of Amazon (shout out to Waffles), you likely closed your computer out of frustration and abandoned your cart.

Amazon was expected to make $1 million in sales per minute during peak hours, so imagine hundreds of thousands of users reacting exactly as you did? Ouch.

As reports flooded in early Tuesday morning of Amazon’s flop, in comes Walmart to announce their potentially better future e-commerce options… coincidence?

Microsoft also reported last month that they are working on self-checkout technology to compete with the Amazon Go retail store. The technology will allow customers to shop without the need for checkout lines and cashiers. A technology they will perhaps share with their new partner Walmart?

What’s the one thing better than 2 day shipping? Walking into a store and walking right out with everything you need (and don’t need), without the hassle of waiting in line.

Eliminating lines will certainly increase Walmart’s retail profits, and working with Microsoft on cloud solutions will increase their e-commerce profits.

For years Amazon has reigned as king of the peaceful e-commerce primedom they created, but beware Amazon… winter is coming.

Contact The TNS Group today to stay up to date on the latest tech trends.

Ashley Pina, Marketing, The TNS Group 

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