Why Computing Infrastructure is Your Biggest Strategic Asset

computing-infrastructure

In today’s competitive landscape, a company’s success is increasingly tied to its underlying technology.

Computing infrastructure, defined as “the hardware and services that other systems and services are built on”, is no longer just a support function; it’s a core strategic asset. This can include everything from file and disk storage to networks, operating systems, and cloud services. A well-built infrastructure provides “decentralization, scalability, fault tolerance, consistency, communication protocols, and especially security”.

A Tale of Two Giants: Amazon vs. Walmart

To understand the strategic importance of infrastructure, consider the long-standing rivalry between retail giants Walmart and Amazon. While Walmart’s core business was built on a traditional retail model, Amazon’s was always centered on eCommerce. This fundamental difference shaped their approach to infrastructure.

Amazon’s early, heavy investments in its cloud computing infrastructure gave it a significant head start. This foundational strength was so successful that it created a subsidiary, Amazon Web Services (AWS), which became a top global cloud service provider. This allowed Amazon to focus on expanding its technology, such as “using Alexa+ for agentic commerce, investing another $1 billion in AI data centers, adding Adidas, Fossil and more to its list of retailers, offering Buy with Prime, [and] launching an online car sales program with Hyundai”. As of 2024, eCommerce accounts for 70.2% of Amazon’s total sales.

Walmart, on the other hand, treated eCommerce as an afterthought. Its private cloud infrastructure and edge computing were designed to control in-store systems like HVAC and lighting, but “failed to account for the data requirements needed to process millions of eCommerce transactions”. Walmart has been forced to “play catch up,” relying on third-party services like Microsoft Azure to compete at scale. While Walmart’s eCommerce sales have grown to represent 17.8% of its total sales in 2024 , it is still “trying to build the necessary tools to even compete at scale”. As a result, Amazon has maintained its lead, with its eCommerce sales far outpacing Walmart’s.

The Challenge of Legacy Systems

The lesson here is clear: organizations that fail to invest in and upgrade their computing infrastructure are at a severe disadvantage. Legacy systems can be a major bottleneck to business-wide implementation , creating “organizational inertia and resistance to change” that can impede the adoption of digital innovations. This “technical debt” accrues interest over time, making future upgrades even more difficult and costly.

This challenge is even more pronounced in regions with “significant infrastructure gaps,” such as Latin America and the Middle East and Africa, which “hinder equitable digital transformation”. As researchers note, “Regional variations in digital preparedness have a substantial impact on competitive positioning in the global economic landscape”. This creates a reinforced position of superiority for companies in digitally prepared regions. For any business to maintain a competitive advantage, it must prioritize the intentional upgrade of its critical systems, rather than reacting only when its capabilities run head-long into its business needs. The path and cost to upgrade grow each day the process is delayed. The “management of digital innovation has the potential not just to enhance, but to redefine a company’s competitive position completely”.

Modern computing infrastructure is increasingly defined by distributed systems, which are fundamental to modern computing, enabling “scalability, fault tolerance, and efficient resource sharing”. Leveraging services in public or private clouds has become essential for diverse application domains, including smart cities, healthcare, and eCommerce. Organizations that make the necessary investments in this infrastructure and the personnel to manage it can gain a significant competitive advantage.

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