The head of Amazon’s cloud unit leaves after three years

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The head of Amazon's cloud unit leaves after three years
The head of Amazon's cloud unit leaves after three years

The chief of Amazon’s incredibly profitable tab, Amazon Web Services’ cloud computing branch, will leave next month.

The chief of Amazon.com’s (AMZN.O.) extremely lucrative cloud computing division of Amazon Web Services will resign next month following a three-year tenure, the firm announced on Tuesday.

On June 3, Adam Selipsky, 57, who also serves as an advisor to CEO Andy Jassy at Amazon, will depart from the firm. Matt Garman, a senior vice president who has managed AWS’s sales and marketing, will take his position.

Over two stints, Selipsky has worked with AWS for 14 years. From 2016 until 2021, when he was chosen to succeed Jassy, who had been named CEO of Amazon, he served as CEO of Tableau Software, a division of Salesforce (CRM.N.).

AWS expanded quickly under Selipsky’s direction, more than doubling its $45.4 billion in sales from the year prior to his appointment to $90.8 billion in 2023. During that same period, operating income almost doubled to $24.6 billion.

Nevertheless, AWS has come under fire for not moving quickly enough to launch competitive generative AI services in order to match the threat posed by rivals like OpenAI. It has opened up wide access to enterprises for its Amazon Q chatbot service.

Tuesday’s share price decline of less than 1% represented little change for the Seattle store.

According to Jamie Meyers, senior analyst at Laffer Tengler Investments, which holds shares in Amazon, “I don’t think it will be very disruptive at all.”

Although AWS holds the biggest market share in the United States for cloud computing, Microsoft’s (MSFT.O.) rapidly expanding Azure service is putting pressure on AWS’s dominance. Azure is gaining access to AI products through its partnership with OpenAI. Furthermore, Alphabet (GOOGL.O) opens a new tab. At its annual developer conference on Tuesday, Google is anticipated to unveil new AI services.

Regarded as the company’s growth engine, AWS is Amazon’s second-biggest business area behind e-commerce, accounting for around 40% of its top line.

In the summer of 2005, Garman began working as an intern at Amazon. A year later, he became a full-time employee and became one of the company’s first product managers.

Selipsky oversaw multiple waves of layoffs at AWS, including the loss of several hundred positions in the department in charge of managing technology sales and marketing for physical locations in April. Among the areas most negatively impacted by Amazon’s 27,000 employment cuts across the board in 2023 was AWS.

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