What Comes Next for AWS with Jassy to Become Amazon CEO

Victoria D. Doty

Improve in leadership looms as the main executive at the dominant participant in cloud computing prepares to guide dad or mum organization.

Amazon founder Jeff Bezos will stage absent from his CEO submit in the 3rd quarter and make place for Andy Jassy as his successor, raising questions about what course the organization may get and the path in advance for Amazon Web Products and services (AWS).

Forrester’s Glenn O’Donnell, vice president and exploration director for infrastructure and operations experts, says Jassy’s promotion from CEO of AWS to the leadership of its dad or mum organization as a reward for his initiatives. “Andy Jassy has been operating one particular of the most profitable firms in the tech entire world — probably at any time,” O’Donnell says. “AWS has been a rousing results tale.”

CEO Andy Jassy, AWS, addresses reporters at AWS re:Invent 2019Image: Joao-Pierre Ruth

CEO Andy Jassy, AWS, addresses reporters at AWS re:Invent 2019

Graphic: Joao-Pierre Ruth

The promotion may well also be a indicator of the course the organization may head in. Amazon may well be regarded amid the common populace as an e-tailing large with a streaming support, but O’Donnell says the dad or mum company’s roots in technological know-how should not be underestimated. “Amazon is not a retailer,” he says. “Amazon is a tech organization that uses its tech to sell things.”

O’Donnell says he does not foresee a substance adjust at Amazon in the short term immediately after Jassy normally takes the reins, though he does hope a thrust at the organization to carry on innovating. “This is an complete prerequisite in the cloud area,” he says. “If you get your foot off the fuel pedal even a millimeter you are fairly much out of the small business.”

Even though AWS is a dominant force in cloud, O’Donnell says it is crucial to retain changing and releasing new abilities. He expects that form of momentum to carry on at Amazon the exact way it shook up retailing in the previous.

There may be some leadership checks in advance for Jassy as far more community scrutiny focuses on major technological know-how players these types of as Google and Fb about how they function, and the electrical power the wield. “The most important problem Andy has is Amazon and other large tech corporations have been coming beneath some increasing force from Washington — regulators — all around achievable antitrust difficulties,” O’Donnell says. “He’s likely to have to offer with a lot of that things.”

Jassy is no stranger to dealings with the federal govt, possessing vocalized his contentions earlier about the Joint Enterprise Protection Infrastructure (JEDI) contract awarded to Microsoft.

JEDI is a strategy for a cloud overhaul for the Department of Protection and armed service solutions.

Amazon has contested the contract in court docket, which bundled promises that quite community vitriol from the Trump White Household aimed at Jeff Bezos may well have motivated the awarding of the contract. What becomes of the JEDI contract beneath President Joe Biden’s administration is up for discussion. “[Amazon] will carry on to fight it due to the fact they have to, O’Donnell says. Having said that, there may well occur a issue, he says, when Amazon may make your mind up to move on to other potential offers.

O’Donnell says AWS has been a sizeable boon to Amazon, recording double digits yearly. “For the longest time it is been the profit heart in Amazon,” he says. At occasions when the retail operation may reduce revenue, AWS was generating revenue, according to O’Donnell. “That variety of sponsored a lot of other things. The retail operation is now generating revenue, as well.”

The next head of AWS has nonetheless to be named by Amazon and O’Donnell says the decision will be very important in the confront of climbing cloud rivals. “They’re not likely to place some slouch in that posture due to the fact they know what variety of chief is necessary there,” he says. “As rapidly as AWS has been escalating, Microsoft’s been escalating even faster. It’s continue to a distant second but it is gaining ground.”

It is as well early to inform what Jassy’s significant designs may be as CEO of Amazon and O’Donnell says the organization has a selection of procedures to take into consideration. “What other firms do they want to get into? They’ve been dabbling in a several other firms,” he says. “Are they definitely likely to make a engage in for the insurance policies marketplace? Are they likely to make a engage in for other firms they haven’t been in?”


For far more relevant articles, stick to up with these stories:

Andy Jassy: Velocity is Not Preordained It’s a Option

Amazon Gets Short term Injunction to Halt $10B JEDI Job

AWS CEO Andy Jassy: Leadership Is Critical to Transformation


Joao-Pierre S. Ruth has expended his occupation immersed in small business and technological know-how journalism 1st covering community industries in New Jersey, later on as the New York editor for Xconomy delving into the city’s tech startup neighborhood, and then as a freelancer for these types of shops as … Perspective Full Bio

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