Bezos, Amazon getting private of their battle with Trump
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Jim Watson | AFP | Getty Photographs
The newest poor choice is the plan of assault Amazon has chosen after shedding the Pentagon’s $10 billion cloud computing JEDI contract. Amazon’s enchantment of that call now formally hinges on the declare that President Donald Trump held a private bias in opposition to Bezos, and by extension Amazon, as a result of Bezos owns the Washington Publish, which publishes unflattering information about him.
Amazon’s legal professionals need to pursue that line of assault by requesting depositions from each Trump and former Protection Secretary James Mattis.
That is merely the fallacious appeals technique for Amazon to take. Keep in mind that almost each main protection contract will get appealed by the shedding bidder. The method hardly ever results in a change within the Pentagon’s choice, however it normally serves to enhance the shedding contractor’s possibilities of profitable the following protection contract.
For Amazon, the appeals course of alternatives are higher than standard. In contrast to a fighter jet, nuclear bomb, or missile protection system, Amazon’s cloud enterprise is completely adaptable and authorized for the corporate to market and promote to nearly anybody.
No, there aren’t that many potential prospects throwing $10 billion contracts round. However information storage demand is so robust that it is grow to be a driving drive behind the tech sector’s general earnings and is rising at a 17% annual clip.
When Boeing or Lockheed Martin lose a Protection Division weapons contract bidding course of, they can not simply flip round and attempt to promote that product to Russia or China. In contrast, Amazon has many extra potential prospects.
By making its enchantment all about an alleged Trump revenge plot, Amazon is throwing away a golden alternative. Now, it is merely becoming a member of the very crowded refrain of Trump bashers and even anti-Trump conspiracy theorists. The corporate loses its likelihood to make use of this enchantment solely as an enormous publicity automobile for AWS in entrance of these many different potential prospects. Actually, this technique actually seems like simply the type of emotionally laden, revenge motivated transfer that Amazon is accusing Trump of creating.
Certain, Amazon can most likely make an honest listing of examples of Trump tweets and feedback at his rallies the place he is bashed Bezos. However the administration’s legal professionals might simply counter with related nasty exchanges Trump had with China, or Apple’s Tim Cook dinner. In each of these circumstances, the president was proud to make offers and even domesticate relationships with these antagonists. Amazon’s higher transfer right here is to easily deal with why it believes AWS is superior for the Pentagon’s wants.
Bezos is exhibiting extra questionable habits together with his response to his ongoing and embarrassing “telephone hacking” scandal. By now, you most likely find out about these notorious intimate footage of Bezos saved on his telephone that went public in 2018. These photographs helped affirm an affair Bezos was having with Lauren Sanchez, which led to his break up from ex-wife MacKenzie and a greater than $38 billion divorce settlement.
How these photographs had been leaked has remained a subject of hypothesis for greater than a yr. However the Wall Road Journal now stories that federal prosecutors consider Sanchez merely despatched the photographs to her brother who allegedly then bought them to the Nationwide Enquirer. This comes at the same time as that brother, Michael Sanchez, has filed a lawsuit in opposition to Bezos accusing him of spreading false rumors to journalists that he bought the photographs.
Yeah, the entire thing is that a lot of a giant and complicated mess.
However within the midst of this grocery store tabloid fodder, Bezos has additionally pursued a idea that his telephone is a part of a critical worldwide incident. He commissioned his personal investigators to look into the matter they usually “concluded” that Saudi Arabia hacked his telephone with the intention to probably blackmail Bezos at a later time. Bezos then handed over that report back to the United Nations, and the U.N. is now demanding solutions from the Saudis.
The subtext of all of that is the truth that Saudi Arabia has additionally admitted that members of its intelligence service murdered Washington Publish editorial column contributor Jamal Khashoggi in 2018. Khashoggi had been writing crucial items in opposition to the Saudi kingdom on the time, and Bezos and the Publish have understandably taken the entire matter very personally.
However there are some powerful questions for Bezos to reply: Even when his accusations are true, what doable punishment would Saudi Arabia face for it? Goes after the Saudis for this alleged telephone hacking definitely worth the embarrassment of reminding the general public of the nude photographs and highlighting the truth that even the world’s richest tech CEO could not preserve his information non-public? This feud with the Saudis comes with numerous collateral injury.
For now, the Amazon money-making machine simply churns on. Bezos and Amazon have already gained way more than the worth of that JEDI contract in private wealth and market cap in simply the previous few weeks due to robust enterprise outcomes.
These good outcomes ought to function a reminder to stay with the strictly enterprise method that acquired him and Amazon the place they’re as we speak. Shifting the main focus to private vendettas is harmful and unchartered territory for a person and a enterprise which have probably the most to lose.
Jake Novak is a political and financial analyst at Jake Novak Information and former CNBC TV producer. You possibly can comply with him on Twitter <a href=”https://twitter.com/AutomobilN