Amazon and eBay

Topics: Electronic commerce, Amazon.com, Amazon Web Services Pages: 3 (874 words) Published: October 22, 2013
Question 1
What are the business benefits to Amazon and eBay of opening up some of their database to developers and entrepreneurs? Do you agree with this strategy? Why or why not? Amazon and eBay have opened the database doors to thousands of developers and entrepreneurs since 2002. They realized very quickly the benefits of this, which was once thought of as risky experiment. A database is a collection of information organized in such a way that a computer program can quickly select the desired pieces of data. It is therefore seen as an electronic filing system. Databases are categorized into Hierarchical, Relational, Object-oriented and Multi-dimensional Networks. Traditional databases are organized by fields, records, and files. A field is a single piece of information, a record is one complete set of fields and a file is a collection of records. For instance, a telephone book. It contains a list of records, each of which consists of three fields: name, address, and telephone number. Both Amazon and EBay has benefited by opening the doors for entrepreneurs and developers to tap into their data warehouses by: When the company opened its data vaults in 2002, with the support of the very first project - Amazon Web Services, entrepreneurs, developers and businesses have tapped into the data. With this data, they began building money making Web sites, new online shopping interfaces, and innovative services for thousands Amazon’s independent sellers. eBay joined in with Amazon shortly thereafter. In doing so, they can interact, build and expand existing business partnerships with other companies. Opening and sharing databases has unlocked the possibility of what is believed to be the Web’s great new beyond. This is an era in which online businesses now operate as an open-ended software. This means platforms can now accommodate thousands of other business selling symbiotic products and services. The rise in open databases and Web services goes even further such...
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