July/August 2017
Amazon & Whole Foods
The Impact on Software

Welcome to The Cirrostratus Group summer newsletter.

Amazon's acquisition of Whole Foods closed on Monday of this week and if you've shopped at Whole Foods since then you've experienced the lower prices. Our local Whole Foods has Amazon Lockers in place already which can be used for shipment pickup. So what does this have to do with SaaS software? Read on and find out.

I'm always interested in hearing about your plans for developing and offering cloud applications.

Paul Ressler
The Cirrostratus Group  

Amazon & Whole Foods     

I believe that Amazon's acquisition of Whole Foods not only has major implications for the grocery business, but that Amazon's success with Whole Foods will likely have major implications for the eCommerce software market and the software business as a whole.

To be successful (and I believe they will be) Amazon will need to make major advancements in logistics, point of sale & payments. They will also likely make advancements in subscriptions, Alexa enabled devices such as Amazon Echo and mobile capabilities. Exactly how and when all of this will happen is of course not clear yet, but Amazon has clearly communicated their initial strategy of lower prices, and using Whole Foods brick and mortar locations as outlets for Echo and Amazon deliveries.

I expect that Amazon's logistics capabilities will be advanced beyond the current Deliver with Amazon service and the logistics innovations described in this article. All of this innovation will be driven by software.

Over time Amazon's innovations in payment technology, beyond what they are currently doing with Amazon Pay will impact subscription and SaaS payment methods especially if they develop new innovative subscription services in food delivery.

All of the above has substantial impact on general eCommerce software and capabilities and will drive other software providers to innovate. Much of the above will likely also have an impact on most subscription type products such as SaaS. This innovation will certainly be exciting to watch!

Resources From The Cirrostratus Group

The Cirrostratus Group Services
Learn more about The Cirrostratus Group's services here.