The blockbuster news came late this afternoon when Amazon announced That Jeff Bezos will step back As CEO of Amazon, he is the company that has built a worldwide behemoth from a business in his garage. As he takes over the role of executive chairman, he will be replaced by none other than AWS CEO Andy Jessie.
With Jassy moving into his new role in the company, the immediate question is who replaces him to run AWS. Let the game begin. Names to be thrown at the rumor mill are Vice President of Global Infrastructure at AWS and Peter Garmon, Vice President of Sales and Marketing. Both are members of Bezos’ elite executive team Known as the S-Team And either would make sense as Jesse’s successor. No one is sure though, and it can be any number of people inside or outside the organization. ()We have asked Amazon PR to provide clarity on the successor, but we had not heard from them as of publication.)
Holger Mueller, a senior analyst at Planetarium Research, says JCS is being rewarded for doing stellar work to grow AWS from a small business to a run rate of $ 50 billion. “It makes sense from the finance side to appoint an executive who knows Amazon’s most profitable business, which operates in more competitive markets. [Appointing Jassy] This ensures that the new Amazon CEOs don’t break the ‘Golden Swan’, ” Muller told me.
Alex Smith, VP of channels covering the cloud infrastructure market at analyst firm Canalys, says the writing has been done on the wall that a transition was working. “This step has been going on for some time. Jassy is the second-most public-facing figure on Amazon and has led one of its most successful business units. Bezos can go on a high and focus on many of his other ventures, ”Smith said.
Smith says the move should increase AWS’s place in the organization. “I think it’s as an AWS advantage, in terms of growing strategic importance for Amazon, rather than a loss in terms of losing Andy as a direct lead. I expect him to stay close to that organization. “
Ed Anderson, an analyst at Gartner, also saw Jessie as the obvious choice to handle Bezos. “Amazon is a company driven by technology innovation, something Andy has been doing at AWS for many years. In addition, it is worth noting that Andy Jessie has an impressive track record of building and running a very large business. Under Andy’s leadership, AWS has become one of the largest technology companies in the world and is most influential in defining what the future of computing will be, ”Anderson said.
In the company’s earnings report released today, AWS invested $ 12.74 billion for the quarter, up 28% YoY from $ 9.60 billion a year earlier. Who employs the company At an elite $ 50 billion run rate. No other cloud infrastructure vendor, even the powerful Microsoft, is close in this category. Microsoft stands at around 20% marketshare, compared to AWS’s nearly 33% market share.
It is unclear what impact the executive reshuffle will have on the company, or in particular AWS. In some ways it feels like when Larry Ellison Stepped in as CEO of Oracle in 2014 Exactly to play the role of Executive Chairman. While Suffra Ketz and Mark Hurd held the position of co-CEOs in that position, Ellison has maintained a smooth engagement with the company. It is reasonable to assume that Bezos will do the same.
With Jessie, the company is getting a man who has risen through the ranks since joining the company in 1997 after pursuing a bachelor’s degree and an MBA from Harvard. In 2002 he became VP / Technical Assistant, working directly under Bezos. It was in this role that he began to see the need for a set of common web services for Amazon developers to use. this The idea evolved into AWS And Jassy became a VP in the part division working his way up until he was appointed CEO in 2016.