News of Adam Selipskys departure from AWS may have shocked some industry stakeholders, but the last 18 months suggest the time is probably right for them to part ways.
Since becoming CEO in mid-2021, Selipsky has steered the company through choppy, often uncharted waters; a pandemic-fueled cloud surge, a marked industry spending decline, the emergence of generative AI, and something of a rebound.
AWS, like its counterparts in the global cloud computing industry, was soaring during the pandemic-era highs, recording solid quarterly revenue growth and maintaining its position as the dominant hyperscaler by market share.
But growth slowed significantly for AWS in 2023. In mid-2022, the cloud giant recorded 33% growth by Q3 the following year, this had plummeted to just 12%. A sizable and concerning downturn for the firm.
Tracy Woo, principal analyst at Forrester, said Selipskys departure wasnt a major shock when viewed through this lens.
Selipskys departure is unsurprising. AWS has seen slower growth under his tenure, she says.
AWS wasnt alone in this experience, Woo noted. Both Microsoft and Google Cloud fell victim to the sharp spending plunge across the industry as enterprises rode a wave of macroeconomic challenges.
Stay up to date with the latest news and analysis from the world of cloud computing with our twice-weekly newsletter
Slow cloud growth isnt necessarily a Selipsky issue but a cloud market issue, Woo added. All of the major cloud providers have seen slowed growth in the past 18 months.
A tech recession downturn and the frenzied cloud first mentality switching to a cloud as necessary mindset slowed a lot of cloud spend from the hyper growth we were used to seeing the previous five years.
For AWS, the issue wasnt just sluggish revenue growth, though. Since the advent of generative AI, sparked by OpenAIs launch of ChatGPT under the watchful eye of Microsoft, priorities have changed. Microsofts partnership with OpenAI gave it a distinct advantage over its main hyperscale rivals, with both AWS and Google Cloud taken by surprise.
At AWS re:Invent 2023, Selipsky used his keynote to poke fun at well-publicized issues surrounding AI safety and recent turmoil at OpenAI with CEO Sam Altmans ousting and swift return.
While jokes at the expense of competitors are somewhat expected, it did point toward a degree of insecurity at the hyperscaler. Microsoft soared past the trillion-dollar market cap mark in 2023 and recorded impressive growth toward the latter stages of the year; all of which was fueled by interest in generative AI.
Lee Sustar, principal analyst at Forrester, said this raises serious questions about how AWS can keep pace with Microsofts growing dominance in the generative AI space.
It still has the financial clout and the coveted market share, but failure to innovate at pace and match Microsoft in this regard could cause serious problems down the line.
AWS remains the market share leader by a long way, but the Microsoft/OpenAI combination has given Azure the initiative on bringing to market AI services as well as AI-infused versions of existing services, he said.
That poses a strategic question for AWS do they mimic Azures approach by moving up the technology stack or stick with the go built it approach thats been so successful.
While AWS has been sluggish to respond to Microsofts current dominance, Google has not.
Across late 2023 and into early 2024, the company made great strides in priming itself for a major battle with Microsoft. The launch of its powerful, multimodal Gemini models and the rebranding of Duet AI and Bard under this banner showed early signs that Google was stirring.
At Google Cloud Next in March 2024, the hyperscaler set the stage for this pending clash and appears to have fully articulated its strategy. With this in mind, AWS could find itself fighting a rearguard action on two fronts.
Sustar noted that this rapidly changing environment likely played a role in Selipskys departure. AWS may have come to the conclusion that new blood is needed to lead the charge in the year ahead.
Google Clouds steady advance in the enterprise market in part due its data, analytics and AI capabilities adds to the competitive pressure, Sustar said. So far, AWS hasnt signaled any shift in its approach but the question of how to move forward likely figured in Selipskys exit.
Its not all bad news for AWS, however, with the company having made some significant progress in its generative AI strategy over the last 18 months.
The launch of Amazon Bedrock, which allows users to access a range of in-house and third-party large language models (LLMs), has been a roaring success thus far.
In July last year, just months after Bedrock launched, Swami Sivasubramanian, VP for database, analytics, and machine learning at AWS, said the company had already drawn thousands of customers.
AWS re:Invent 2023 saw the firm further outline plans for its generative AI offerings, with the launch of Amazon Q, its own AI assistant akin to Microsoft Copilot.
This was hailed as a highly positive move and by all accounts at the time was highlighted as a key differentiator for the firm in keeping pace with Microsoft. But Google Cloud has also made a foray into this space with the launch of Gemini Code Assist and new Vertex AI Agents.
Selipsky, to his credit, appears to have rallied the troops at AWS in a similar fashion to Sundar Pichais efforts in early 2023 to take on Microsoft. But so far neither have shown signs of inflicting a major, industry-changing blow.
While it faces a major challenge in contending with both Microsoft and Google on the generative AI front, morale appears to be high at AWS.
In Q1 2024, the firm recorded 17% growth year-over-year, suggesting something of a rebound. Amazon CEO Andy Jassys comments on Selipskys departure also point to an optimistic outlook moving ahead.
Adam leaves AWS in a strong position, having reached a $100 billion annual revenue run rate this past quarter, with YoY revenue accelerating again, he said.
Selipskys successor, Matt Garman, currently serves as SVP for AWS sales and marketing and has been at Amazon for around 19 years. Jassy specifically highlighted the fact Garman has an intimate knowledge of the firm that will stand him in good stead.
Crucially, this could be exactly what AWS needs to press home its market advantage and mount a real challenge.
- Open source cloud computing slow to catch on, survey finds [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Oracle CFO: no acquisitions needed to compete in cloud [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- IDC Survey: U.S. Corporations Aim to Tackle IT Challenges with Cloud Computing [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Where does the ICO's new cloud guidance take you? [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- ChinaSoft International Signs Strategic Cooperation Agreement with Alibaba Cloud Computing to Develop PaaS Platform [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- IT Leaders Forum: Shedding light on cloud computing [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Oracle Public Cloud Computing [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Oracle Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing 101 - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Lenovo Gets Into Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing Certification Training | Cloud Computing Training By Simplilearn - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Succeeding or Failing with Cloud Computing - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Demystifying the Cloud - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- N: Cloud Computing, Syria PM Defects, US to Clean Agent Orange and MORE! - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Cloud Computing - Tv9 - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- AWS 101 Cloud Computing Seminar-Bangalore - Video [Last Updated On: October 5th, 2012] [Originally Added On: October 5th, 2012]
- Trust - The Key to Cloud Computing Growth in Europe [Last Updated On: October 6th, 2012] [Originally Added On: October 6th, 2012]
- Cloud Computing Saves Health Care Industry Time And Money [Last Updated On: October 6th, 2012] [Originally Added On: October 6th, 2012]
- Synnex CEO Kevin Murai: Tablets, Mobile, Cloud Computing (p3) - Video [Last Updated On: October 6th, 2012] [Originally Added On: October 6th, 2012]
- Enterprise computing IS the cloud [Last Updated On: October 8th, 2012] [Originally Added On: October 8th, 2012]
- 44 Percent Of US Execs To Tackle IT Challenges Through Cloud [Last Updated On: October 8th, 2012] [Originally Added On: October 8th, 2012]
- ZapThink Announces Expansion of Cloud Computing for Architects Course [Last Updated On: October 9th, 2012] [Originally Added On: October 9th, 2012]
- Euro Zone Eyes Cloud Computing to Kick Start Economy [Last Updated On: October 9th, 2012] [Originally Added On: October 9th, 2012]
- Advantages, challenges of cloud computing discussed Oct. 10 at NJIT [Last Updated On: October 10th, 2012] [Originally Added On: October 10th, 2012]
- Dell Expands Cloud Client Computing Solutions for VMware View®, Desktop as a Service and Channel Offerings to Europe [Last Updated On: October 10th, 2012] [Originally Added On: October 10th, 2012]
- Cloud West to Focus on Entertainment Delivery, Network Infrastructure, and Investment, More at Nov. 8-9th Forum [Last Updated On: October 10th, 2012] [Originally Added On: October 10th, 2012]
- IBM, AT&T Offer Secure Passage to the Cloud [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Cloud computing company hits new fundraising heights [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Cloud computing firm hits new fundraising heights [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Cloud computing: here we go again [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- Chinese Want to Put Computer 'Brains' in the Cloud [Last Updated On: October 11th, 2012] [Originally Added On: October 11th, 2012]
- CenturyLink Unveils Cloud Product [Last Updated On: October 12th, 2012] [Originally Added On: October 12th, 2012]
- Cloud Security Evolves in Wellington [Last Updated On: October 14th, 2012] [Originally Added On: October 14th, 2012]
- 2X ApplicationServer XG Joins the Intel AppUp SMB Service Hybrid Cloud [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- Piston Cloud to Exhibit and Present at the 2012 OpenStack Summit in San Diego [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- How to get your first cloud computing job [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- DreamHost Adds Public Cloud Computing Service: DreamCompute [Last Updated On: October 15th, 2012] [Originally Added On: October 15th, 2012]
- Aryaka Receives 2012 Cloud Computing Excellence Award [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Making a Europe fit for the cloud [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Cisco Execs Plumb The Limits Of Cloud Computing [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Cloud firm invests in new network [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- AirWatch Receives 2012 Cloud Computing Excellence Award [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Dell Extends Cloud Client Computing Portfolio with New Solutions Validated by Citrix [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Pano Logic and Alliance InfoSystems Join Forces to Deliver Zero Client Computing [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- 5 Cloud Business Benefits [Last Updated On: October 17th, 2012] [Originally Added On: October 17th, 2012]
- Alteva Receives 2012 Cloud Computing Excellence Award [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Open Text profit beats estimates on cloud services [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud computing improves nurse call system [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud computing: Top five tax considerations for your business [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- OKI and ISID to Provide Chemical Information System as Cloud Computing Services [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- As Mobile Grows, So Does Cloud Computing [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- IBM Analytical Decision Management SaaS - IBM Cloud TechTalk October 2012 - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- JAX London 2012: Achieving genuine elastic multitenancy with Waratek Cloud VM for Java - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Microsoft 2020 technology future vision - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Infinity Cloud Point of Sale and Complete Retail Suite.mp4 - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Small Business IT Support, Computer Support, Web Design Atlanta - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing - Simplified - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- How Allied Valve Used the Cloud to Expand in Bakken Oilfield - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing in the Public Sector - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing | Sacramento | Data Protection | IT Consulting | Symmetry Managed Servces - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- The Business Value of Cloud Computing - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- GYMNAZO Owner/Coach Michael Hughes is excited about edufii - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Automation in the age of cloud computing - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud Computing.mp4 - Video [Last Updated On: November 1st, 2012] [Originally Added On: November 1st, 2012]
- Cloud computing in 2013: a conversation with Appcore's CEO [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Cloud adoption growing in India: study [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Eastday-Microsoft picks city for cloud computing [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Towards a blue sky: How SMEs can avoid Cloud Computing confusion [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Consultancy Services - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Axxis Solutions Sponsors FIBA Technical Seminar on Cloud Computing - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- RightScale Webinar: 451 Research Webinar: Cloud Dos and Don'ts - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Apple Technology (Vishwa Bandhu Gupta) - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Mind Tree Ltd. - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- BIM Cloud Computing [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Entreda discusses cloud services for small and medium businesses - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Austin IT Company | Computer Networking [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- Cloud Computing and Services - After Effects Template - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- FieldStorm App Tour - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]
- The Hon Brendan O'Connor's speech: AccountRight Live launch event - Video [Last Updated On: November 3rd, 2012] [Originally Added On: November 3rd, 2012]