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Walmart to suppliers: Get off Amazon cloud


Walmart is asking its technology suppliers to pick sides in its retailing war with Amazon.

The retailing giant reportedly warned some tech companies that if they want its business, they can't run applications on Amazon’s cloud platform, Amazon Web Services. Walmart currently partners with tech suppliers that already leverage cloud apps running on AWS, although the retailer didn’t reveal which applications or how many they use, sources told the Wall Street Journal.

Walmart spokesman Dan Toporek told CNBC, “Our vendors have the choice of using any cloud provider that meets their needs and their customers' needs. It shouldn't be a big surprise that there are cases in which we'd prefer our most sensitive data isn't sitting on a competitor's platform.”

In 2016, AWS posted $3.1 billion in operating income for 2016. This was almost $1 billion more than the company’s North American retail sales, according to Amazon’s fourth quarter results for the period ended Dec. 31, 2016.

Walmart’s decision is the latest shot in the ongoing battle between the two retailing giants. It also could be a response to Amazon's two latest announcements.

In addition to revealing that it would purchase Whole Foods Markets for $13.7 billion, Amazon recently invited individuals participating in government assistance programs to sign up for an Amazon Prime membership at the discounted rate of $5.99 per month. This program specifically targets an audience segment that has long been a stronghold of Walmart: lower income customers.

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