Consumer electronics retailer Best Buy Co. Inc. has named Amazon Web Services Inc. as its preferred cloud provider, the companies announced this morning. 

Publicly traded Best Buy is a major consumer electronics retailer with more than 1,000 stores and annual revenue that exceeded $47 billion in its most recent fiscal year. The company has already been using AWS services to support several parts of its business. Following the decision to name AWS as its preferred cloud provider, Best Buy plans to expand its use of the Amazon.com Inc. unit’s platform.

In the first phase of the expanded partnership, Best Buy will move additional “retail operations workloads” from its on-premises data centers to AWS. In conjunction, the retailer intends to expand its use of the third-party software available in the AWS Marketplace.

The companies’ expanded partnership also places an emphasis on employee training. AWS has a unit called AWS Training and Certification that helps information technology practitioners learn how to use its cloud platform. Best Buy’s technologists will gain access to the cloud training curriculum and other resources the unit provides. 

Best Buy has already been using AWS services to power parts of its Totaltech membership program. Totaltech enables consumers to access technical support, discounts and other benefits for an annual fee. Best Buy also used AWS to roll out a curbside pickup option across its stores. 

“Our purpose to enrich lives through technology has never been more important, and this new partnership with AWS is another step in our commitment to deliver outstanding experiences for our customers,” said Best Buy Chief Digital and Technology Officer Brian Tilzer. “Not only will AWS’ cloud technologies help us in this work, but in combination with our culture of innovation and reinvention, they will give our teams invaluable development opportunities as we continue to grow our skilled teams and remain one of the best places for amazing technology talent to thrive.”

Best Buy is among the growing number of major retailers to have inked cloud deals with AWS. The cloud giant also counts Petco Health and Wellness Company Inc. and J Sainsbury plc, the second largest supermarket chain in the U.K., as customers. Overall, the cloud giant says, it has thousands of customers in the retail sector. 

“Best Buy is transforming the way people buy technology and is using AWS’ comprehensive set of cloud services to accelerate its innovation,” said Amazon Vice President and Chief Technology Officer Werner Vogels. “Thousands of retailers like Best Buy continue to trust AWS as their cloud provider of choice because of our ability to help them remain agile and innovate faster to meet the demands of the constantly evolving retail landscape.”

That AWS has built up a significant customer base in the retail sector represents a notable feat given the scope of parent Amazon’s e-commerce business. Some of AWS’ retail sector customers no doubt compete with Amazon in certain areas, but have nevertheless decided to use its cloud. 

One component of AWS’ value proposition for retailers is the growing array of services and features on its platform that use technology from its parent company’s e-commerce business. One example is the Amazon Personalize service that it launched in 2019. The service, which is based on machine learning technology used by Amazon’s e-commerce business, helps companies with tasks such as generating customized shopping recommendations. 

Photo: Best Buy