FedEx and Microsoft's new alliance will bolster FedEx's technological capabilities, but that alone won't be enough to edge out rival Amazon.
Amazon has the advantage of being both a technology and a supply chain company, giving it the advantage over those more focused on one or the other, Singh said. FedEx's Microsoft team-up allows it to compete technology-wise with Amazon without having to spend years developing its own cloud capabilities in-house, he said.
"In the retail and e-commerce space, Amazon is No. 1, and it’s not just because they’ve been able to dominate in e-commerce," Watson said, comparing its current dominance to Microsoft in the 1990s."... They’re good at everything, it seems like. That’s why everyone is trying to gang up on Amazon."FedEx and Microsoft highlighted the use of Azure, Microsoft's cloud computing platform, in their announcement.
FedEx is likely using Azure “to incrementally boost the scale and scope of its data tracking and analytics capabilities,” said Matthew Young, a FedEx analyst at financial services firm Morningstar. Plus, FedEx is already familiar tapping into Azure and other Microsoft resources. In 2017, FedEx CIO Rob Carter“This competitive, last-mile solution extended our business — with fewer IT resources required,” Carter said.Watson sees the team-up benefiting Microsoft more long-term than FedEx. The collaboration won’t transform the Memphis logistics giant, Watson said, but it does ensure Microsoft keeps a large customer.
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