Bezos’ departure as CEO shows Amazon is now a cloud company

Founder of Amazon and Chief executive Jeff Bezos said on Tuesday he would step down as CEO of the legendary e-commerce company to become its executive chairman. The news, announced in a note to employees, arrived next Amazonfourth quarter 2020 profits, in which the company generated more than $ 125 billion in revenue, propelled by holiday shopping and pandemic buying.

Bezos’ successor does not come from Amazon’s global consumer business, but from its cloud business. long time Amazon Web Services Boss Andy Jassy will become the company’s chief executive when Bezos leaves his daily job in the third quarter of this year. Jassy’s name will be new to many consumers, but those who follow Amazon’s inner workings closely say his appointment comes as no surprise.

“It was a rough time, but I guess you don’t ‘relieve’ people in these things,” says Patrick Moorhead, Founder and Senior Analyst at Moor Insights & Strategy. “Andy Jassy was the perfect and the only replacement for Bezos given his clear success with AWS.”

Daryl Plummer, vice president and senior analyst at Gartner, agrees. “Jassy has been prepared for this role for a long time,” he says. “And in my mind, he’s a great person to start asking, ‘Where are we going next? “”

A struggle to find a role

Jassy joined Amazon in 1997, three years after the company was founded by Bezos. According to The store of everything, a book written by Bloomberg reporter Brad Stone, Jassy was a Harvard Business School graduate who seemed “unlikely to fit into a geeky tech startup.”

Jassy filled a few different roles in the early days; Stone writes that Jassy presented the original business plan for an Amazon music service in the late 1990s, but was not selected to lead it. He was also in charge of Amazon’s personalization group for a while. A better opportunity came when Bezos named Jassy his “shadow,” a Chief of Staff role that gave him unique access to Bezos’ world. Jassy’s fate was sealed when he helped launch Amazon Web Services, or AWS, in 2006.

The original intention behind AWS was to address the issues that Amazon faced due to its rapid growth. The company relied on the same software and servers that many other internet companies used at the time, but over time it found that this “Monolithic” software slowed down its growth. So the company created its own cloud infrastructure service, not only for its own use, but, according to Jassy’s vision statement, so that other companies can “use web services to build applications.” sophisticated and scalable ”.

It was a wise decision. Amazon hasn’t reported a significant profit for almost 20 years, but AWS has played a big role in making profitability a reality. Amazon began releasing AWS figures in 2014, when it reported a 4.6 billion dollars in revenue. And while many internet users may not have been aware of the power that Amazon has started to exert with AWS, whenever there is a AWS failure—Or someone tried bravely to leave without using apps powered by Amazon – it became painfully obvious that AWS provided the underlying technology for many popular apps.

AWS becomes a profit engine

Over time, AWS has become Amazon’s primary profit driver. Perhaps most notably, it has also gotten a lot smarter, as Amazon has figured out that infusing its cloud service with machine learning the tools could give it a leg up on rivals Microsoft, Google and IBM. In 2016, AWS launched new machine learning services that allowed AWS customers, “ranging from giants like Pinterest and Netflix to small startups, to create their own mini Alexas,” Steven Levy written in WIRED. It also launched a new cloud-based computer vision service called Rekognition. These services are both a “powerful revenue generator and a key to Amazon’s flywheel, as customers as disparate as NASA and the NFL pay to get their machine learning from Amazon,” Levy wrote.

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