Total War: Amazon and Google backyard battle

Source: Internet
Author: User
Keywords Cloud computing e-commerce amazon google

Lead: Today, foreign media published an article saying that due to the great development of science and technology industry, the enterprises that had no problem started to enter each other's territory successively. Google and Amazon are the typical examples. The competition between the two has been going from beginning e-books to online advertising, e-commerce, mobile devices, and cloud computing, with a full-scale war in 2013.

The following is the full text of the article:

Fully war

Ten years ago, when Amazon CEO Jeff Bezos heard that Google would scan the product catalog, the seeds of opposition were buried.

The news prompted Bezos, an early Google investor, to wake up. According to a former Amazon executive, Bezos realized that the Web search engine wanted to invade his online retail empire.

The executive said, "He realized that scanning the product catalog while in the interest of Google, but Google's real goal is to scan all books," and then sell e-books.

An opposition formed on this. By 2013, the competition between the two sides will also spread to more areas, from online advertising and retail to mobile devices and cloud computing.

This may lead to the collapse of the last bit of cooperation between the two sides. Amazon, for example, decided to use a modified version of the Google Android operating system on the Kindle Fire tablet, while Google set ambitious plans for Motorola Mobility that will only make the relationship more tense.

The relationship between the two has become one of the best footnotes in today's tech industry: businesses that are already at peace are entering each other's territories. Under the shadow of Google and Amazon, Facebook also lurks ambitious - it is also working hard to develop its own search and advertising business.

"Amazon wants to offer one-stop shopping, and Google wants to provide a one-stop search," said Qian Zhihua, venture capital firm KPCB. "From this perspective, conflicts between the two sides are inevitable."

Both companies have their own advantages. Google market value of 235 billion US dollars, about twice the Amazon, mainly due to the company's huge net profit - analysts on average estimate that Google net profit this year achieved 13.2 billion US dollars. In comparison, Amazon may see a small loss this year.

Amazon shareholders have been patient about the company's investment plans, but the company also has to make huge profits at some stage - a greater probability of success if it can tap into the more profitable advertising business. On the other hand, Google's stock price is subject to the slowdown in the growth rate of profit.

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