Amazon as a facilitator

Amazon is an interesting company to follow. They have been able to grow a substantial computing and logistics infrastructure. In the software world they are known for pioneering two-pizza teams. Two pizzas as a size of the team size. Each member of the team should have a decent meal out of two pizza’s. Amazons teams are  responsible for all aspects including infrastructure for a piece of functionality, for example the sales rank on a product detail page.

Now Amazon is taking its business model even further (see the article from business week). Amazon’s model reminds of the market for flowers in Holland or the stock exchange. Many small and large business are able to run on a centrally hosted infrastructure. By having a central infrastucture more efficient use of resources and markets are created. The big difference is that these market only plays a role as a intermediary and have no intentions to compete with the players on the market. Amazon is a player on the market and logistics it provides to other. Not just a player but number one with an ever expanding collection.

I like pioneers and it is interesting to see where this is heading for Amazon.


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