Amazon.com, Inc.(NASDAQ:AMZN) Web Service has filed a
lawsuit against a former company executive who plans to join Google
Inc(NASDAQ:GOOG), charging him with violating a non-compete agreement which was
part of his severance package.
The lawsuit filed by Amazon also said that the
executive, Daniel Powers, was privy to the `secrets' of the company since he
had learned the business "from top to bottom."
The threat to Amazon Web Services is perceived to be
from Google Compute Engine, which was launched in June, and is part of its
cloud services offering.
Geekwire first reported the news. According to the
news - "Daniel Powers, an IBM veteran, joined AWS as VP of sales in 2010,
learned the business “from top to bottom” and was privy to company trade
secrets, according to the suit. In June, 2012 Amazon offered him a severance
package in return for a signed non-compete agreement. This suit, filed in
Washington State Superior Court, charged that Powers’ decision to join Google
violates the terms of that pact, which required him to stay clear of directly
competitive work for 18 months."
Google Compute Engine is being seen as a huge threat
to Amazon, which is the biggest provider of public cloud infrastructure. In fat
Amazon is already expecting more competition from Rackspace, HP and Microsoft,
all of which are aggressively moving into cloud-based services.
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