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Amazon's next chapter


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November 03, 2006

Amazon's next chapter

Stephen Baker

Interesting cover story by Rob Hof on Jeff Bezos' plans to turn Amazon into a technology platform for other companies. Essentially, Amazon has developed technology and expertise for running its own business. It has lots of spare capacity. So why not turn it into a business?

This reminds me of what IBM did in the '50s. They used operations research to optimize their own supply chain. Then they turned that into a service business, optimizing everyone's else's operations. Now, IBM is trying to provide on-demand computing power for its customers. Which--now that I think about it--puts Big Blue right into competition with Jeff Bezos' latest scheme.

09:16 AM

BusinessWeek

I agree, but my money is on Amazon.

Posted by: Jeff K at November 3, 2006 08:43 PM

I think people at Amazon have to do something to keep them growing higher while they're at peak. And now the most important thing is how.

Posted by: peter lee at November 8, 2006 06:41 AM

Since Amazon started selling books, I can't help but think the company has gone in too many directions. Instead of becoming the dominant player in a niche and moving on to the next, they've jumped from product category to product category, going for breadth over depth. Problem is, quality degrades with depth, and likewise, so has the shopping experience on Amazon.com.

Although these technology service offerings are good, and show-off the greatness of Amazon's technology staff, it's just more proof that Amazon is chasing to many avenues.

Posted by: Gunnison at November 9, 2006 03:28 PM


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