The discount retailer is scaling back its use of Amazon Web Services, according to sources familiar with the matter, as the company aims to take greater control over its infrastructure and stop financing its chief rival. Amazon's purchase of Whole Foods is the latest sign of how deep the e-commerce giant is moving into all forms of retail.
Microsoft Azure is among the rival cloud vendors vying to nab Target's cloud business, said the sources, who asked not to be named because the plans are confidential. Google and Oracle are also beefing up their cloud offerings.
Like all big box stores, Target is being trounced by Amazon, which is selling more items for cheaper and delivering them faster. Target's annual revenue is lower than it was five years ago --though the company has sold off its credit card business and pharmacy division during that stretch -- and the stock has lost 23 percent of its market value in the past 12 months.
On Monday, Amazon finalized its $13.7 billion purchase of Whole Foods and instantly cut prices in stores by more than 30 percent on organic fruit and meat. From electronics and household goods to toiletries and groceries, Amazon is expanding its inventory.