Walmart the retail giant has some how smelled the future. Company is constantly trying new and innovative things to survive in the future. Recently Walmart has spent a heavy price $16 billion to enter in E-commerce platform. At $16 billion Walmart purchased 77 per cent stakes in Indian E-commerce website Flipkart.
Walmart has made a another bold move. On Tuesday Walmart made strategic partnership with Microsoft Corp. The main reason behind the Microsoft and Walmart partnership is to take on rival Amazon in both technology and retail.
Walmart has tie-up with Microsoft to leverage its cloud solutions for making shopping faster for its customers globally. The partnership will be of five years. In this five years of partnership Walmart will use the Microsoft’s cloud solutions, including Microsoft Azure and Microsoft 365.
Walmart has been using Microsoft’s Azure since its $3 billion acquisition of Jet.com in 2016. Company plan’s to build a global Internet of Things platform on Azure for connecting its stores and shipping systems to streamline its supply chain and to route thousands of trucks.The new projects focused on machine learning, artificial intelligence, and data platforms.
“Walmart’s commitment to technology is centered around creating incredibly convenient ways for customers to shop and empowering associates to do their best work,” Walmart chief executive officer Doug McMillon was quoted as saying in the release.
“Whether it’s combined with our agile cloud platform or leveraging machine learning and artificial intelligence to work smarter, we believe Microsoft will be a strong partner in driving our ability to innovate even further and faster,” he added.
In an interview with Wall Street Journal, Microsoft CEO Satya Nadella said that their shared rivalry against Amazon is “absolutely core” to their partnership .“How do we get more leverage as two organizations that have depth and breadth and investment to be able to outrun our respective competition,” Mr. Nadella added.
Amazon is a big threat for both Walmart and Microsoft. Walmart compete with Amazon in retail market where as Microsoft compete with Amazon in cloud services market. The partnership will help both the companies.
According a report by Reuters published in June, Microsoft is developing a cashier-less technology powered by Azure that works just like Amazon Go. Microsoft has also hired a computer vision specialist from Amazon. Walmart has also been trialing a cashier-less shop since late last year. This partnership will help Microsoft and Walmart to keep pace with Amazon Go
Amazon Go is a retail store in Seattle, where you just have to walk in, take the product and leave. Multiple camera and sensors that use computer vision algorithms will keep a eye on you to detect what items you’re taking out of the store so you’re automatically charged. Amazon plans to open six more stores across the US within this year.
At last both companies knows that if they constantly not innovate them self they might loose. It will also be interesting to see how Walmart compete against the Amazon which is the future of retail.
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