This WSJ via MSN piece has more details on the rationale and logistics.
Plus a "scary" attached video:
https://www.msn.com/en-us/money/comp...ies/ar-BBPnuVN
Quote:
By building two headquarters, Amazon can tap different geographic regions for talent, including some who may not want to move too far from home. It may also not be competing with other major tech giants in a given area, like it does with Microsoft Corp. in the Seattle area.
Additionally, the decision would allow it to lessen the potential headaches for chosen areas. Amazon has wanted to avoid being the only large company in town, something it has dealt with in Seattle, according to people familiar with the company’s thinking. Adding 50,000 workers—even over more than a decade—would likely cause some hiccups for transit systems and potentially lead to issues like a lack of affordable housing.
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Quote:
Crystal City, just across the Potomac River from Washington, D.C., has an urban feel, numerous government offices and a ready-to-go campus with empty, older office space that Amazon could use. The area has good access to tech talent and transportation, two factors that rank high on Amazon’s wish list.
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Amazon already has a massive AWS facility in the general area and AWS has been getting a lot of government contracts so they are following the money by going there. Cheaper, more liveable than DC but just as close to the dispensers of largesse.
I've been to Crystal City and it is a great business-focused project with its own metro station and an underground mall beneath it. nice hotel, too. Too small to accommodate 50,000 jobs with little room for expansion but there's plenty of space available right now so it makes sense it would still be in the running and it explains the split.
Looks like 2B might be either Texas or NYC.
Not sure the rationale for NY unless Amazon is looking to tap Wall Street for AWS contracts or looking to get into biotech.
Texas could mean all sorts of new business, not just AWS contracts but Texas has a *lot* of businesses for AWS to tap into. Or, maybe they are thinking of splitting AWS work, letting Crystal City handle customer acquisition and support and the other campus (Texas) handle R&D. Lots of ways a split makes sense if its AWS-focused.
The whole HQ2 thing is now looking to be driven by AWS so getting it out of Seattle (and away from Microsoft) makes sense. Otherwise they would be fighting over the exact same new hires. Of course, this big of an AWS expansion (even if only one of the two campuses turns out to be AWS driven) means they expect even more growth in their computing business. That would explain IBMs panic buy of RED HAT at a 60% premium. They're already way behind AWS and Azure and even Google in the cloud business.
At least it'll be a relief to the publishing/media establishment that Amazon's not growing in their direction. For now.