Niklas Zennstrom stated: “When we look at puting. we ever think about ‘how defendable is this. how likely is it that person is traveling to copy this. ‘ E-commerce tends to be something easy to copy because it’s executing. ” Amazon is the world’s largest online retail merchant since the company opened in the garage of Jeff Bezos’ . and its annual are over 10 billion dollars. Many companies later have copied Amazon and now vie for e-commerce net incomes ; hence companies like Google and Microsoft become an issue for Amazon.

This has instigated Amazon to develop merchandises for other e-commerce concerns. and now Amazon offers business- to -business e-commerce. This paper will discourse whether Amazon is traveling off from its nucleus competence of a prima on-line retail merchant. and if this is a wise scheme. A brief description of the Amazon database. how Amazon uses each constituent. and what data direction issues may be encountered by Amazon. the relationship between informations. information. and how Amazon tackles each will be included in this paper.

To last the invasion of companies like Google. Amazon has resolved to provide a series of calculating. storage and other services that make its substructure available to concerns and people to help them administer the technological and logistical parts of their company. Amazon lone uses 10 per centum of its processing capableness. and offering these extra services will non impair other sections of the on-line retail merchant. This is a move off from its core expertness ; nevertheless. this is a astute determination on the portion of the Amazon Company. This scheme allows the company to hike net incomes by utilizing resources already on manus.

This is similar to a landlord make up one’s minding to lease out the empty flat as a storage unit. because it was non used by a household. The infinite was already at that place the landlord merely found a new usage for the vacant infinite. The Amazon database is made up of the Simple Storage Service ( S3 ) . the Elastic Compute Cloud ( EC2 ) . and the Mechanical Turk. These services plans are an effort by Amazon to be a chief rival in the following development of the Internet. The Simple Storage Service allows concerns to warehouse informations and applications on Amazon disc thrusts at 15 cents per G per month.

For 10 cents an hr Amazon offers treating power on the Elastic Compute Cloud which is the same as one fundamental waiter. The Mechanical Turk is the most complex of the three Amazon database constituents. and is committee based. Rainer. Turban wrote in the: Introduction to Information Systems: Supporting and Transforming Business. 2nd Edition. that the: “Mechanical Turk service combines treating power with webs of existent people who are paid to make the sort of work that machines can non make good. such as acknowledging inappropriate content in images or transcribing sound.

Companies post pieces of work onto the Mechanical Turk and pay people online. for which Amazon receives a 10 per centum committee. ” The information direction issue that might be encountered by Amazon is how much infinite they can lease out before it takes off infinite and clip from the online retail merchant system. A 2nd issue would be what Amazon must make when Google and Microsoft start to copy and develop similar merchandises at a lower monetary value. Amazon dressed ore on worsening gross revenues by increasing its productiveness to guarantee investors will see the net income growing they expected form the on-line retail merchant.

Amazon decided to offer services that no other on-line retail merchant provided and this is how they tackled all their current issues. Amazon is assisting 1000s of companies store and debug their informations information. therefore all three plans can be used together by a client to hive away electronic mails after they check them for malware. and see what keywords draw prospective consumers to their sites. I think Amazon will win end to revolutionise retailing every bit long as they understand how to accommodate rapidly in concern.