Daily Management Review

Trump Attacks Amazon While His Government Does Big Business With E-retailer


04/05/2018




Trump Attacks Amazon While His Government Does Big Business With E-retailer
While Amamcon.com and U.S. President Donald Trump apparently may be preparing for a war between themselves, Amazon’s one of the largest customers have been Trump's government.
 
The Trump government has an agreement with Amazon for providing cloud-based computing services for the CIA and other intelligence agencies with the help of the huge Amazon Web Services cloud computing division.
 
Amazon reportedly had beaten IBM to clinch the deal which first given to the e-retailer in 2013.  It had bene reported that the contract of the deal extends to a period of ten years and is worth a massive $600 million over 10 years.
And ever since the Trump administration has taken office, the deal has been upgraded more than once even though it was first awarded to Amazon during the presidency of Barrack Obama.
 
A so called Secret Region was being created and rolled out for the CIA as a part of the contract it had with the government in in relation to the AAWS, Amazon had announced last November. And it was just last month that an expansion of the government deal with AWS was announced by the company.
 
Amazon is "the only cloud service provider" that has an existing contract with the government on "the full range of US Department of Defense data classifications," which also included Top Secret information, the company had said in a blog post published in March this year.
 
The deals with that it has with the U.S. government is put to use by the company for its advertising purposes where it highlights the manner in which the government is saving on money by using the cloud services that it provides in comparison to the other cloud services that are available in the market. The highlighting of the cost savings is very similar to the rhetoric of President Trump.
 
But if an article published last Monday night by Vanity Fair is to be believed Trump is attempting to nullify some of the government contracts that lies with Amazon in addition to attempting to find out ways and means to enhance the costs for shipping for Amazon.
 
But the million dollar question is whether he existing contracts between the government and Amazon be pushed enough by Trump so that hey are cancelled resulting in loss of money for the government – which is actually the money of the American tax payers. At present Amazon has government contracts for providing its cloud services through its AWS to multiple government agencies including the DoD, CIA and some other military and intelligence agencies.
 
There were no immediate comments made on the issue by the Trump administration as well as by Amazon to the reports on AWS or the attack by trump on the company. 
 
Ever since a report published on March 28 by Axios about the attack that Trump has been ushering in on Amazon and his “obsession” with the company, there has been a drop of nearly 10 per cent in the stocks of Amazon'. The report further stated that this attitude of Trump is potentially because of the anti-Trump and anti-White House reports published in the Washington Post – a newspaper that is personally owned by Amazon CEO Jeff Bezos.
 
His feelings about Amazon was made clear by Trump through multiple tweets last week where he alleged that the e-retailer was taking advantage of the American postal system to deliver its goods and that the company was refraining from paying enough taxes and was “putting many thousands of retailers out of business”.
 
 (Source:www.money.cnn.com)






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