|Cloud, Digital, SaaS, Enterprise 2.0, Enterprise Software, CIO, Social Media, Mobility, Trends, Markets, Thoughts, Technologies, Outsourcing|
Linkedin Facebook Twitter Google Profile
Saturday, June 11, 2005
I have always wondered why Amazon is co- hosting & integrating other sites as part of amazon.com instead of offering that as a separate service. while this may provide some additional comfort to service users initially and can be seen as amazon showing supreme confidence in non cannibalization and if anything ability to increase cross sell and upsell, serve as a standing example of amazon's technology maturity, for me it opened more issues than it tried to solve and most importantly it would serve as an excellent reference for the emerging software-as-a-service mechanism. Nicholas Carr writes, The real problem with Amazon is not a matter of measures but the fact that it houses two very different businesses. On one side stands the on-line retailer,pitching a plethora of goods, the other consists of an information-technology company that provides merchants with a software platform for Internet sales. Amazon, is playing both ends of the supply chain - it's a retailer, and it's a supplier of software to other retailers. The two Amazons have little in common. Their economics, for instance, differ fundamentally. The retailing business relies on micro-thin profit margins. Despite Amazon's strong brand, it remains pinned under relentless pricing pressure. To draw customers, it's even been forced to offer cheap or free shipping on most purchases, further squeezing its margins.
Categories :Amazon.com, SaaS. |
|Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld