He took charge of Amazon’s biggest moneymaker. Now he faces a new set of challenges

Selipsky was no stranger to AWS. He first joined the Amazon cloud computing division in 2005, earlier than its companies had been even publicly accessible. But in 2016, after 11 years with the corporate, he left. In the 5 years he was away working knowledge visualization agency Tableau, the enterprise and the business modified significantly, bringing Selipsky a brand new set of challenges.

Annual income from AWS almost quadrupled in that point, and the pandemic brought on an enormous surge in demand for cloud computing and cloud-based companies. But the aggressive panorama additionally intensified. While AWS pioneered cloud know-how and is the longtime business chief, rivals like Microsoft (MSFT) Azure and Google (GOOGL GOOGLE) Cloud have stolen a few of its market share.
In 2019, Microsoft received a contract to modernize the Pentagon’s IT infrastructure in a deal value as a lot as $10 billion over 10 years, a serious blow to AWS, which beforehand held a cope with the division. The contract was finally canceled after Amazon protested that former President Donald Trump had unfairly influenced the deal, nevertheless it signaled that AWS might not be the apparent alternative for such main initiatives.
Now, each corporations are anticipated to bid — doubtlessly together with others equivalent to Google Cloud and Oracle — for the Defense Department’s new Joint Warfighting Cloud Capability (JWCC) contract to switch the 2019 deal.

But in considered one of his first interviews since taking on as AWS CEO, Selipsky sounded assured about his firm’s prospects. The new AWS chief mentioned he believes his firm nonetheless has an edge over Microsoft in clinching authorities work.

“We really were the first in the cloud to have big, significant government contracts in every area of government and years before any of the competitors,” he instructed CNN Business in an unique interview final week, which came about inside the brand new AWS Skills Center on the firm’s headquarters. “We learned a lot about how to do cloud implementations and work very closely with federal government customers,” he mentioned.

He added: “I think you’ll find, particularly given our leadership position, that our competitors spend a lot more time talking and worrying about AWS than we do about them — we choose to focus on our customers.”

(While such contracts are good for enterprise, some staff have beforehand taken problem with the corporate’s work for sure authorities businesses, together with Immigration and Customs Enforcement — a dynamic which will solely add to Selipsky’s challenges within the position.)

Selipsky mentioned Amazon by no means anticipated being the one winner within the cloud. And the business has definitely gotten massive sufficient to accommodate a couple of main participant — public cloud spending is predicted to achieve greater than $300 billion this yr, in response to Gartner estimates from April.

“In any fast growing, interesting market segment, there’s going to be competition,” he mentioned. “We’ve always thought there would be not a lot of winners, but a small handful of winners that emerge and have vigorous competition, and that’s what we see. But we still are the significant leader.”

We ‘actually encourage’ staff talking up

Shortly after Selipsky took cost of AWS, the enterprise confronted a unique problem from inside. A gaggle of staff circulated a petition alleging discrimination and harassment of ladies and minorities in one of many AWS enterprise items, after which the corporate employed an outdoor agency to analyze. Similar worker activism has cropped up lately at Apple, Google and online game firm Activision Blizzard.
While some corporations have appeared to chafe at worker organizing (AWS father or mother firm Amazon has confronted criticism for what some see as anti-union efforts), Selipsky mentioned he thinks staff talking up might finally be good for the enterprise.
Amazon hires outside investigators after employee petition alleges discrimination and harassment

“I really like the fact that people are bringing their whole selves to work and that they’re speaking out — we really encourage that,” he mentioned. “I’ve found that if you have a really good process and really genuinely listen and show people that you’re taking the time to listen, even when they disagree with you at the end of the day, we all can lock arms and move forward together.”

He continued: “I really welcome the fact that a lot of topics are being discussed today that maybe were discussed less in the workplace five, 10, 20 years ago.”

Another rising concern with the cloud business is that the information facilities it depends on are power intensive. Much of that computing continues to be reliant on fossil fuels, however Selipsky mentioned AWS is working to alter that in line with Amazon’s bigger promise to be web carbon zero throughout the corporate by 2040. Amazon’s local weather pledge was introduced in 2019 simply forward of a deliberate walkout by staff over perceived inaction by the corporate on local weather change.

“Amazon intends to be 100% renewable energy by the year 2025 … and we’re already about two-thirds of the way there, so we’re making significant progress,” he mentioned. “Just given our size and our scale and the things like the data centers we operate, we really have to drive them with renewable energy in order to hit that [2040] goal. We’re doing a lot of innovating ourselves, we’re doing a lot of partnering with a lot of companies, a lot of governments, a lot of nonprofits to reach those goals.”

Selipsky could have his first probability to handle clients at AWS’s annual cloud convention, Re:Invent, in Las Vegas later this month. He mentioned clients ought to anticipate bulletins in a few of “our oldest and most basic services, things like compute and databases and storage,” in addition to “exciting announcements about higher level services and industry specific solutions.”

“It’s absolutely imperative that we continue to understand [customers’] evolving needs, which are changing very quickly, and we’re going to evolve right along with them,” he mentioned.


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