05 Sep 2012
In your recent interview with Marks & Spencer CIO Darrell Stein he complains that Amazon was taking too long to implement changes to the M&S website (Marks & Spencer to spend £100m on in-house web platform).
I find this puzzling. AWS is an IaaS that provides VMs, not IT services. If business changes are not being implemented as fast as desired, that is an issue that lies inside M&S or with whoever they contracted their IT to.
Maybe someone at M&S is covering their arse by persuading the CIO that they need to spend many millions to bring hosting in-house, rather than tackle their own processes and operations?
"We want to drum the costs down as far as possible, and as a growing business with increasing sales, we expect to see economies of scale," said Stein. "You don't necessarily get that when you outsource."
Sure Darrell, of course you will have better economies of scale than AWS!
AWS pricing is perhaps not as good as it could be, but that will fix itself as the IaaS market becomes more competitive and commoditised in the next few years. M&S might well want to switch provider, but for it to bring its online operation back in-house seems very odd.