The feud between Google and Amazon will grow even more contentious in 2013 as both companies square off in an increasing number of arenas including consumer hardware, advertising, cloud computing, and ecommerce. Reuters today reports on where things currently stand in the war between two web giants, and where they'll be heading over the next twelve months. Amazon is likely to further encroach on advertising, traditionally Google's lifeblood, thanks to a wealth of invaluable customer purchase data that will let ad buyers target specific audiences (both on Amazon and other websites.)

For its part, Google will be ramping up its efforts in the cloud with Compute Engine — the company's answer to Amazon's popular EC2 platform. And then Android, with Amazon famously having forked away from Google's traditional model in favor of direct control over its Kindle ecosystem. Until now that battle has largely been relegated to the tablet space, though a Kindle smartphone seems like an inevitability at this point. With so much at stake, each company will be keeping a close eye on the other in the year ahead.