Amazon’s CEO Choice Reflects the Importance of Cloud Computing
Andy Jassy to Replace Jeff Bezos
On Tuesday Amazon (AMZN) announced that Andy Jassy, who currently heads Amazon’s cloud unit AWS, will succeed Jeff Bezos as the company’s CEO. The 53-year-old Harvard Business School graduate will lead one of the world’s largest tech companies and retailers beginning in the third quarter of 2021.
Jassy has helped Amazon become a leader in the cloud computing space over the past 15 years. Amazon’s choice to make Jassy its CEO is a sign that cloud computing is becoming an increasingly important part of the tech industry. “With Andy Jassy in charge of all of Amazon, it shows how the company wants to bring that DNA at the core of AWS to all of Amazon,” said Rishi Jaluria, Analyst at D.A. Davidson & Co.
The Cloud Computing Boom
Cloud computing essentially means renting servers and software to customers. Demand for cloud computing is booming and analysts expect the market could be worth over $300 billion this year.
A wide variety of industries, from video games makers to car companies, have turned to the cloud in recent years. The pandemic, and the subsequent transition to remote work and ecommerce, has caused the shift to the cloud to accelerate.
Amazon and other cloud service providers give companies cloud-based tools to collect data about their products and customers. They also provide ways to analyze that information using artificial intelligence and other strategies.
Amazon Works to Stay Ahead of Competitors
During the final quarter of last year, revenue from AWS hit $12.7 billion—a 28% jump from the same period a year ago.
Amazon leads the way in cloud computing by sales. AWS controls roughly 34% of the market while Microsoft (MSFT) is in second place with a 20% market share. Google (GOOGL) is also working to gain ground in the cloud computing market. With Andy Jassy at the helm of all of Amazon, the company hopes to maintain its position as a leader in this increasingly important sector.
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