Amazon Cloud CEO Changes Strategy Amid Microsoft-Google Rivalry

Amazon’s new cloud chief Adam Selipsky plans to tailor more products to specific industries such as healthcare, automotive and telecommunications, a shift for a company that once focused on Wider solutions that can be used by most customers.

“The world around us is changing so much that we will have to be different,” Selipsky told Bloomberg Television. “It doesn’t matter what we did yesterday.”

To some extent, Amazon Web Services draws inspiration from its competitors Microsoft and Alphabet’s Google, which have deployed cloud packages designed for certain industries. Microsoft, for example, offers targeted clouds for the healthcare, retail and space industries. Selipsky’s predecessor Andy Jassy, ​​now CEO of parent company Amazon, generally avoided creating special or one-off products, even when customers requested them. Jassy has resisted adapting cloud services to the unique demands of governments, although he eventually gave in.

AWS is by far the leader in the provision of rental IT infrastructure and serves businesses in virtually every industry. But Selipsky said customers are demanding a variety of new products and targets, including industry offerings, “which we are starting to do now for industries such as financial services and telecommunications, healthcare and automotive. And we’re doing some really exciting things for all of these industries and more.

The strategy is not without challenges. A move towards tailor-made products risks dispersing efforts too thinly or slicing the company’s strategy too finely. Already, some executives and employees are saying they are leaving for startups and new fields because they say it is getting harder and harder to do large and enterprising work at AWS. Still, cloud software applications sold as a service are very profitable for companies like Microsoft, more so than infrastructure services where Amazon still dominates.

Selipsky was named head of AWS in March after Jassy was chosen to replace founder Jeff Bezos as CEO of All Amazon. Selipsky spent five years at the helm of Tableau, guiding the Seattle-based company in restarting its data visualization software business and selling $ 15.3 billion to SalesForce in 2019. Prior to joining Tableau, Selipsky was Jassy’s right-hand man at AWS, as COO. -as a role that took him to oversee sales, marketing, technical support and customer service for the unit. He joined the company in 2005.

When asked if Amazon should focus more on office productivity applications, like Microsoft’s cloud-based Office or Google’s Workspace, Selipsky said that AWS still has “the broadest set and the more comprehensive cloud services ”, but it was important for the cloud giant to create more applications. . “It can be marketing, it can be human resources,” he said, citing Amazon Connect, a call center program that demonstrates the company’s ability to build specific applications in addition to services. general purpose cloud. In other cases, Amazon will let partners build the most granular products, he said. Either way, he acknowledged that AWS needs to avoid getting too comfortable.

“It’s really important to keep acting like we’re insurgents and not start acting like incumbents,” Selipsky said.

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Margie D. Carlisle