Online retailer Flipkart is now following global pioneers like Amazon and Google to build its own servers and networks. The move is aimed at creating a platform that responds to specific requirements. The decision to build its own servers follows painful experiences of the past. Flipkart’s first Big Billion Day sale, in 2014, was a big turning point for the company, which was able to cross $1 billion for the first time since inception. But it was also a major embarrassment for the e-commerce giant.
“It is not surprising to see Flipkart build its own hardware,” said Sanchit Gogia, Chief Analyst and CEO, Greyhound Research.
“E-commerce manages the scale like nobody else. This means they’ll have to invest heavily in servers and switches in the next decade. It is much cheaper to invest in your own architecture and build it yourself. But it is not as easy as it sounds. Flipkart will face immense challenge trying to get into the big league of Google and Amazon.”
Source: Hindu Business Line
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