Amazon.com, Inc. (NASDAQ: AMZN), (DBX) – Amazon considers “rebel alliance” with Dropbox, Slack to challenge Microsoft: Insider
Amazon.com Inc (NASDAQ: AMZN) is in talks with other companies about a “Rebel Alliance” to challenge Microsoft Corp (NASDAQ: MSFT) market dominance of labor productivity applications, Insider Reports.
What happened: Amazon aims to partner with software makers to offer a set of business apps at one price. Corporate customers would purchase the package along with other features such as single sign-on and unified billing through the Amazon Web Services cloud platform.
Amazon discussed the package with Dropbox Inc (NASDAQ: DBX), Slack Technologies Inc (NYSE: WORK), and Smartsheet Inc (NYSE: SMAR), among others.
Discussions have been going on for more than a year, though AWS chief executive Andy Jassy will become Amazon CEO next week. Jassy did not sign and repeatedly sought a stronger case, according to Insider.
A package would help businesses that prefer to purchase a variety of business apps. A business could buy Slack for internal messaging and Dropbox for cloud storage instead of buying everything from a single vendor like Microsoft.
It would also create an alternative to the market-leading Microsoft 365 product suite with services ranging from word processing to spreadsheets, team messaging, and video conferencing. However, it can be overwhelming for small businesses to pay for and manage individual apps.
Why is this important: Amazon aims to extend AWS beyond its core cloud infrastructure business into the workplace productivity application space.
AWS has launched a series of products that directly compete with Dropbox, Tableau, and Slack, among others, with limited success.
Last week, AWS purchased the corporate email service Wickr after considering a bid for the encrypted messaging app Signal and seeing increased demand for security from government customers.
AWS remained concerned about Microsoft’s catching up to Azure in cloud computing, becoming an even bigger competitor by joining forces with the already dominant Office product suite. Each AWS meeting would have focused on the growing prowess of Microsoft.
AWS infrastructure represents many popular business applications. Hence, increased usage of these apps translates into higher revenue for Amazon.
Price action: AMZN shares traded down 0.64% to $ 3,418.29 in the last check on Thursday.
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