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GreenOps, FinOps, and the Sustainable Cloud – CDOTrends

The consistent, high-usage profile of data centers may lead us to believe that cloud data centers are markedly more sustainable than private cloud data centers. But data shows that the public cloud now has a more significant carbon footprint than the airline industrya notoriously carbon-intensive segment. A single public data center can consume the same amount of electricity as 50,000 homes. A public data center's annual consumption of 200 terawatts/hour is more than some nation-states' annual consumption. Rising consumer pressure and new E.U. regulatory reporting requirements, such as Germany's Energy Efficiency Act that mandates a 26.5% reduction in carbon emissions from 2008 levels by the year 2030, have opened the door to GreenOps.

GreenOps is the practice of minimizing a cloud environment's carbon footprint through the efficient use of cloud resources. This means far more than just reducing the energy required to power a data center and the water used to cool it. Other factors, such as the data center's physical footprint, type of installed power, size of data volumes, temperature set points in the data center, reuse of secondary heat, and even renewable energy, all contribute to the calculation of CO emissions. By September 2024, the Data Centers in Europe reporting program, a European Energy Efficiency Directive subsidiary, will require European organizations to report onallof these factors.

While Europe is leading the charge, other regulations and initiatives around the world promote more sustainable energy consumption models: the SECs Climate-Related Disclosures/ESG Investing in the U.S., the National Renewable Energy Development Plan in China, the Environmental Impact Assessment (EIA) Regulations, and the National Solar Mission in India, to name but few.

From a high-level perspective, GreenOps looks a lot like FinOps. After all, the two share the same goal: efficient cloud usage. When a company maximizes efficiency, two obvious effects are 1) lower costs and 2) lower carbon emissions. The same FinOps tasks of right-sizing, storage tiering, deleting idle and unattached resources, and scheduling compute off time are also used in GreenOps to achieve lower carbon emissions. Closing outlast years AWS re:Invent, Werner Vogels reinforced this sentiment when he said, "Cost is a close proxy for sustainability"a ringing validation of the tightly integrated relationship between FinOps and GreenOps.

New E.U. regulatory reporting requirements, along with increased consumer and shareholder pressure, will create the case for more efficient and, therefore, more sustainable use of the cloud worldwide. For example, new technologies that use water instead of air to cool data centers have shown up to a 95% reduction in CO. Still, sustainability isnt solely the public cloud providers responsibility. Forrester recommends that companies take the following actions:

These are some of the easier immediate actions that organizations can take to minimize their carbon footprint and maximize the value of their investment in the cloud, but not the only ones.

The original article ishere.

The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CDOTrends. Image credit: iStockphoto/aapsky

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Huawei Cloud Goes Live in Egypt – Huawei

[Cairo, Egypt, May 24, 2024] Huawei launched a Cloud Region in Egypt on Tuesday, making it the first company to establish a public Cloud in the region. The Cairo Region will deliver Huawei Cloud's intelligent and innovative capabilities and serve as a Hub for countries in Northern Africa.

Huawei Cloud Cairo Region Goes Live

The announcement, made at the Huawei Cloud Summit 2024 in Cairo on Tuesday, adds to Huawei Cloud's global presence of 93 availability zones in 33 regions.

Huawei Cloud also announced its new Arabic Large Language Model (LLM), an important step in supporting companies in the region with the digital transformation of vertical industries. The automatic speech recognition (ASR) service supports functions covering over 20 Arabic-speaking countries, with an accuracy rate reaching 96%.

Dr. Amr Talaat, Egypt's Minister of Communications and Information Technology, said: "Cloud computing technologies have become a key pillar of the digital infrastructure in all developed countries, given the increasing importance of data and its steady expansion. Egypt first launched a cloud computing policy through the Supreme Council of Digital Society, acknowledging the importance of cloud computing technology and its economic and technological advantages. This enables government entities to avoid wasting computing resources and allows their computing products flexibility in using more resources without long-term planning."

Dr. Amr Talaat, Egypt's Minister of Communications and Information Technology

Zhang Chaoyang, Minister of the Chinese embassy in Egypt, said, "We are glad to see that Huawei, as one of the leading global ICT and digital technology companies, has proactively integrated into the local digital innovation ecosystem since it started business in Egypt in 2000. Huawei has also played an active role in promoting the development of the local communications industry, cultivating young digital talent, and fulfilling its corporate social responsibilities."

Zhang Chaoyang, Minister of the Chinese Embassy in Egypt

Speaking at the Summit, Jacqueline Shi, President of Huawei Cloud Global Marketing and Sales Service, said Huawei Cloud will also provide, in addition to LLM, capabilities such as artificial intelligence and databases, in support of Egypt Vision 2030.

"From today, everyone can start the digitization journey on Huawei Cloud. With our unique capabilities across chipset, AI computing framework, and training platform, we believe we can help the country build its data sovereignty and own large language models which are essential to protecting and passing on the country's history, culture, and knowledge," Shi said.

Shi added: "When we combine industry know-how with technology, that's the way to truly help industry make the most of the Cloud. This is a shared mindset of our team. We believe each industry should have its own specific LLMs." Currently, Huawei Cloud serves over 500 financial customers, 800 e-government projects, 120 carriers, and the top 30 automakers worldwide.

Mark Chen, President of Huawei Cloud's Global Solution Sales Department, unveiled the CHANGE architecture at the event. The architecture features a new cloud native infrastructure, a comprehensive cloud technology platform (AI), leading solutions for the various industry scenarios, efficient and comprehensive professional services and expert consulting services, which can provide better, more efficient and valuable services for customers in finance, government affairs, e-commerce, media, and various other industries.

"We believe this is the best practice architecture for digital transformation today. Digital transformation is a complex systematic project, and enterprises need to respond to industry transformation and upgrading challenges with systematic thinking and innovative architectures," Chen said.

At the Summit, Huawei additionally announced that it will invest US$300 million over five years to develop the new Egypt Region. Funds will go to over 200 cloud services including AI platforms, data platforms, and development platforms. To nurture a thriving ecosystem, Huawei will support 200 local software partners, empower 1,300 channel partners, and eventually build a prosperous local software and application ecosystem. Over the next five years, Huawei will train 10,000 local developers and educate 100,000 digital professionals in the region, to drive intelligent transformation.

Huawei Cloud also announced at the Summit upgrades to its startup program in Egypt, including an advanced cloud platform, training programs, and business resources. The Huawei Cloud Startup Program assigns dedicated teams to advise on startups' cloud adoption and subsidizes their cloud consumption. A single startup can apply for cloud credits worth up to $150,000.

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‘Multi-cloud all the way’: Why Google Cloud’s UniSuper fiasco shows you shouldn’t rely on a single cloud provider – ITPro

Earlier this month, UniSuper found itself in a true nightmare scenario when Google Cloud deleted the account complete with backups belonging to the $135 billion pension fund.

The incident prompted nearly two weeks of confusion and disruption for the Australian firms 600,000+ members, culminating in a public apology from Google Cloud CEO Thomas Kurian.

Google described the incident as an unprecedented sequence of events whereby an inadvertent misconfiguration during provisioning of UniSupers Private Cloud services ultimately resulted in the deletion of UniSupers Private Cloud subscription.

Industry experts have suggested that the incident highlights the importance of keeping and diligently maintaining backups. Theyre certainly not wrong, but on this occasion backups simply werent enough to avert disaster.

UniSuper said it had "duplication in two geographies" as a failsafe against an outage or data loss. However, the deletion of the firms private cloud subscription affected both of these locations as well.

Luckily, the firm said it had backups in place with an additional service provider, which helped minimize data loss.

What this incident points toward is a bigger problem: Lumping all your eggs in one hyperscaler basket.

Stay up to date with the latest news and analysis from the world of cloud computing with our twice-weekly newsletter

UniSuper announced in mid-2023 that it would outsource maintenance of its IT infrastructure to the cloud giant, which isnt out of the ordinary. Companies the world over do this with other major providers such as AWS or Microsoft.

Jamil Ahmed, distinguished engineer at Solace, told ITPro that while choosing a single cloud vendor improves simplicity, the UniSuper incident highlights the growing appeal of a multi-cloud approach.

"One-of-a-kind, extremely rare outages or issues continue to plague every service provider from time to time, which is why the need to store and access valuable information on multiple provider services has arisen, he said.

From a business perspective, Ahmed said there are no excuses for having a single cloud provider in 2024, as this ultimately hamstrings a business into working with one vendor that at any time could encounter a similar problem.

Simply put, he said, a single-vendor approach is a vestige of a bygone era in cloud computing.

It needs to be multi-cloud all the way, treating cloud as a commoditized compute as much as possible, rather than building apps and services that are tied to knowing what cloud they're in.

Unfortunately, when businesses first introduced the cloud into their strategy, about 10 years ago, they made multi-provider usage a problem to solve later on.

It is now 'later on,' and the strategy of using one cloud service is demonstrably dangerous and negligent."

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Defense Agencies Turn to Multicloud Strategy – FedTech Magazine

The department can also work with vendors to ensure offerings meet strict Defense cybersecurity requirements, Lamb says, adding that the multicloud move has accelerated the departments shift away from outdated waterfall development processes into more agile workflows. Over time, Lamb expects early lessons will pay off in the form of applications that are fully optimized for a multicloud environment.

Were making sure that the service branches are sharing content with each other trying to take the best practices and leverage them, Lamb says. We want to build applications that leverage the best parts of Azure, the best parts of AWS, the best parts of Google, Oracle and future cloud service providers, to build applications that are more flexible. Thats where we see things going.

MORE FROM FED TECH: Backup and recovery best practices.

Along with redundancy and failover capabilities, one of the chief advantages of a multicloud model is the ability to move workloads to the best possible environment. Thats often easier said than done, Sustar says.

Users who embrace multicloud environments are increasingly focused on using the right cloud for the right workload at the right cost, Sustar says. Thats hard to do completely, as it isnt practical to change clouds for near-term price fluctuations. But it makes sense if customers can separate their core infrastructure services needs from higher-priced service, such as managed AI, which typically have more dependencies on a cloud providers infrastructure and raise the risk of vendor lock-in.

Within DOD, Lamb says, the decision on where to host resources is left largely to individual service branches, with the hope that IT leaders take advantage of the best of each cloud environment.

Were seeing service branches becoming centers of excellence for programs that are trying to migrate, he says.

Seville says he thinks of public cloud resources as three major tiers. In the tactical edge tier, warfighters access local, disconnected compute resources that eventually upload to a cloud environment. In the operational edge tier, applications run fully in the public cloud but in closer physical proximity to the warfighter to support performance demands. The strategic tier supports large-scale environments.

The benefit of having all of these cloud providers comes down to options and distribution capabilities, Seville says. Warfighters can take advantage of the locations and services and capabilities of four different providers, and pick and choose what they need.

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Telefnica and Google Cloud Extend Strategic Partnership to Accelerate Digital Transformation, Drive Innovation, and … – PR Newswire

MADRID, Spain and SUNNYVALE, Calif., May 23, 2024 /PRNewswire/ -- Telefnica and Google Cloud today announced the renewal and extension of their partnership to bring best-in-class cloud offerings to the market and to help businesses accelerate their digital transformations. The agreement includes the expansion of Google Cloud services offered by Telefnica Tech for the B2B market, cloud adoption by Telefnica for its own business, and the strengthening of collaboration in key areas of innovation, such as artificial intelligence (AI) and generative artificial intelligence (Gen AI).

Telefnica is using Google Cloud internally to advance in its own digital transformation, leveraging Google Cloud's technologies in areas such as IT through its "Go to Cloud" program. Telefnica has accelerated the transformation of its own operations systems, improving application deployment time and optimizing infrastructure. The strategic collaboration agreement between Telefnica and Google Cloud has demonstrated great value for both companies over the last several years, which has encouraged Telefnica to extend for three additional years and to explore collaboration on areas such as the use of AI and data services, the use of Google Cloud's solutions to host network functions under a telco cloud approach, and the improvement of Telefnica's network operation via automation.

Telefnica Tech, the digital transformation arm of the company, continues to evolve its capabilities by achieving five specializations in Google Cloud: Workspace for Enterprise, Infrastructure, Application Development, Data Analytics, and Cloud Migration. Additionally, Telefnica Tech has attained Google Cloud's Managed Service Provider status, solidifying its position as a proven expert in helping customers accelerate growth, enhance productivity, and innovate with Google Cloud technology.

"This extension of the partnership reinforces Google Cloud as a key partner for Telefnica in the coming years. Many of our new services and processes will be based on the innovation, agility, scalability and flexibility that Google Cloud provides to us," said EnriqueBlanco, Telefnica Global CTIO.

"Telefnica's ambition and commitment to innovation is inspiring. Our renewed and expanded partnership is a testament to the shared vision and trust we've built together. We are incredibly excited about the potential of this collaboration to drive innovation, accelerate digital transformation, and create lasting value for Telefnica and its customers," said Tara Brady, President of Google Cloud EMEA.

Telefnica is building next-generation digital products and services, with Google Cloud technologies as strategic enablers. Telefnica will explore a set of innovation projects with Google Cloud on previously agreed areas, which include AI, Gen AI, MLOps, accelerated computing infrastructure for AI, Web3, blockchain, quantum, and edge computing.

Google Cloud is also working closely with Wayra, Telefonica's corporate venture capital, to provide startups with technology to help them innovate their product development processes, optimize costs, and support their market expansions.

About TelefnicaTelefnica is one the largest telecommunications service providers in the world. The company offers fixed and mobile connectivity as well as a wide range of digital services for residential and business customers. With more than 388 million customers, Telefnica operates in Europe and Latin America.

Telefnica is a 100% listed company and its shares are traded on the Spanish Stock Market and on those in New York and Lima.

About Google CloudGoogle Cloud is the new way to the cloud, providing AI, infrastructure, developer, data, security, and collaboration tools built for today and tomorrow. Google Cloud offers a powerful, fully integrated and optimized AI stack with its own planet-scale infrastructure, custom-built chips, generative AI models and development platform, as well as AI-powered applications, to help organizations transform. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology partner.

SOURCE Google Cloud

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Amazon to Invest $17 Billion in Spanish Cloud Infrastructure – Morningstar

By Mauro Orru

Amazon.com plans to invest 15.7 billion euros ($17.04 billion) over the next decade to expand its cloud services in Spain, the latest pledge from the U.S. tech giant to bolster its presence in Europe at a time of growing demand for cloud and data services.

Amazon Web Services, the group's cloud-computing arm, said the investment would help it expand cloud infrastructure in Aragon, a landlocked region in northeastern Spain where AWS already has a presence. The company launched services there in late 2022 for users to directly store their data in Spain.

The group last year laid out plans for an independent sovereign cloud service in Europe, saying the project would help public sector organizations and customers in highly regulated industries to navigate evolving data-storage requirements.

In 2021, AWS had planned to pour EUR2.5 billion into Spain. The latest 10-year investment represents a more than sixfold increase to AWS's initial plan. Jorge Azcon, president of the regional government in Aragon, said the announcement was the largest investment from a company in the history of Aragon.

Amazon estimates the funding will support about 17,500 jobs a year in local businesses in industries including construction, facilities maintenance, engineering and telecommunications, adding roughly EUR21.6 billion to Spain's gross domestic product through to 2033.

The announcement comes one week after AWS said it would invest EUR7.8 billion through 2040 to expand its cloud services in Germany, with the first launch of its AWS European Sovereign Cloud project expected to take place in the state of Brandenburg by the end of 2025.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

May 22, 2024 09:32 ET (13:32 GMT)

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Lessons From Kubernetes and the Cloud Should Steer the AI Revolution – The New Stack

We’ve seen this story before…

Over the past decade, cloud computing and Kubernetes emerged as revolutionary forces by promising scalability, efficiency and operational flexibility. These innovations changed how organizations deployed and managed digital infrastructure, with cloud services enabling easy resource scaling and Kubernetes offering sophisticated container orchestration.

Yet this swift scale of technological adoption brought challenges, notably configuration technology debt — a complex issue that hampers developer productivity, causes system outages and increases security risks. This issue could have been prevented if organizations implemented a proactive configuration data management strategy.

Emerging artificial intelligence (AI) technologies are following a similar trajectory. The initial excitement around AI’s potential allows us to avoid repeating past mistakes, including accruing configuration tech debt.

Addressing config debt early in AI development is crucial to avoid the previous config challenges cloud and container technologies faced in their fast rise to the mainstream.

Cloud computing revolutionized IT, emphasizing scalability, flexibility and cost-efficiency. Businesses quickly moved from expensive on-premises data centers to the cloud, valuing agility and innovation. Yet this transition introduced configuration complexities, leading to configuration debt as companies struggled to optimize cloud services for performance and cost.

The industry responded by developing tools and best practices for cloud management, prioritizing simplicity, repeatability and automation. These measures helped reduce config debt, allowing organizations to fully leverage cloud computing’s benefits while effectively managing its challenges.

Kubernetes automated the deployment of containerized applications, scaling and operation, allowing developers to concentrate on application development rather than infrastructure.

Despite its benefits, Kubernetes introduced complexities in configuration management, with the potential for significant configuration debt because of inconsistent best practices.

The Kubernetes community developed tools and practices such as Helm charts for package management, operators for automated application management and Infrastructure as Code (IaC) tools like Terraform, alongside CI/CD pipelines for efficient configuration.

AI development parallels the rapid growth of cloud services and Kubernetes, promising to revolutionize business operations with new capabilities like enhanced decision-making and task automation.

However, this swift advancement can lead to another cycle of accumulating config tech debt, as we saw with the cloud and Kubernetes. AI systems have enormous configuration complexity: AI tech stacks, algorithms, data pipelines and models must be configured correctly for optimal performance, scalability and security.

Misconfigurations in the AI tech stack lead to mismanaged data ingestion pipelines, inefficient model training and inadequate security measures. Addressing these challenges requires not repeating the mistakes from our cloud and Kubernetes experiences.

The evolution of cloud computing and Kubernetes offers vital lessons for AI development. It highlights the need for strategic planning, including tool selection and best practices in configuration management, to avoid config debt and ensure system scalability and security.

Implementing automation and IaC will reduce manual errors and make configurations more reliable and auditable. Effective governance and clear configuration management policies are crucial for maintaining system integrity and compliance, especially in fast-paced AI innovations.

Fostering a collaboration and knowledge-sharing community akin to the Kubernetes ecosystem is essential. By leveraging these lessons, the AI development path becomes more apparent, enabling technology to achieve its transformative potential while avoiding technical debt.

To avoid configuration debt in AI development, organizations can learn from cloud computing and Kubernetes by emphasizing strategic planning, automation and a culture of continuous learning.

 

Automation reduces manual errors and ensures consistent, reliable configurations through tools that support IaC. Establishing clear governance policies across AI projects streamlines configuration management and adheres to best practices, minimizing config debt risks.

CloudTruth‘s co-founder, Greg Arnette, says, “Based on research interviews with over a thousand engineering leaders, I believe that a must-have solution for the new AI era is a comprehensive secrets and config data orchestration solution that manages, audits, secures and versions AI-stack configurations and secrets. AI systems are complicated to configure and maintain, and expensive to operate because they consume many cloud resources and handle sensitive company data.”

Cultivating a culture that prioritizes ongoing improvement helps teams stay abreast of the latest technologies. Implementing these strategies ensures effective and efficient AI systems management, free from the burdens of configuration debt.

A clear pattern emerges connecting the rise of cloud and Kubernetes with the rise of artificial intelligence technologies — rapid innovation followed by the realization of accrued configuration technical debt that will sabotage successful deployments.

Organizations can mitigate config debt by adopting standardized tooling, governance frameworks and collaborative practices prioritizing simplicity and automation. This ensures AI systems are scalable, secure and capable of fulfilling their transformative potential.

Remember that configuration data is “load bearing” in your AI infrastructure stack. Given that secrets and variables are mission-critical, config errors statistically cause more outages and breaches than any other type of software bug.

A must-have for every team is a solution that comprehensively manages, audits, secures and versions this data without requiring a ton of rework.

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AWS Invests $17B in Spain for Cloud, AI Infrastructure Expansion – AI Business

AWS is investing $17 billion to expand its cloud and AI infrastructure services in Spain.

Amazons cloud business will expand its cloud infrastructure in the Aragn region of in northeastern Spain, creating 6,800 jobs across roles including construction, engineering and facilities maintenance.

AWS says its infrastructure expansion will contribute $24 billion to Spains gross domestic product. More than half of the contribution will come from the Aragn region, while also supporting 17,500 jobs in local businesses.

AWS' decision to choose Spain places us at the forefront of technology innovation and AI in Europe and confirms, once again, Spains ability to support technology talent and quality jobs in the long term, said Jos Luis Escriv, Spains minister for digital transformation and the public service. This new commitment by AWS spotlights our countrys attractiveness as a strategic tech hub in southern Europe and the connectivity, climate and energy conditions that make us an attractive location to the worlds most innovative companies.

AWS, like Microsoft, is expanding its computing infrastructure to support increased demand for cloud and AI services. Before its Spain expansion, AWS announced plans to double its cloud infrastructure in Singapore by 2028.

Related:AI Pioneer Andrew Ng Joins Amazons Board Amid AI Expansion

The companys latest news is an expansion of its 2021 plans to invest $2.7 billion in Spain.

The Spanish government is attempting to turn the Aragn region into a tech hub. Telco firm Telefnica, Insud Pharma and the Spanish Red Cross among the local customers leveraging AWS services there.

Since its arrival in Aragn, AWS has turned the region's potential for attracting technological investments into a reality, said Jorge Azcn, president of the Aragn regional government. AWS is a global company, but its involvement in the local ecosystem and the communities in which it operates have made it an Aragonese company. The investment we are announcing today is unique in the history of technology investments in our community and in Spain. It will definitively place Aragn on the map as a center of innovation and the cloud economy in Europe.

AWS says since 2022, its Aragn data centers have used 100% renewable energy. The company has pledged to reach net-zero carbon emissions by 2040.

Its Aragn sites also use technology to detect water loss in the local water system. The company also returns any unused water back to the local supply for reuse.

We will match the electricity used in our data centers in Aragn with 100% renewable sources and continue to look for different ways to innovate and run our operations more efficiently and sustainably, giving resources back to the communities where we have a presence, said Suzana Curic, AWS country manager for Spain and Portugal.

Related:Amazon Invests $4B to Advance Generative AI Tech to Customers

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How Google Cloud is Providing a Launchpad for Women in Tech – Technology Magazine

This motivated Google Cloud to create the Google Cloud Launchpad for Women programme, aimed at helping customers upskill their teams while empowering more women across industries with cloud and AI skills. We launched the first version of the programme in March of this year, Rifkin says, and we were impressed by the level of demand from our customers. We had over 5,000 people, with a wide range of titles from CEO to IT analyst, sign up for the program, representing major Global 2000 companies like Electronic Arts, Highmark Health and Palo Alto Networks.

Lee Moore, VP of Global Google Cloud Consulting, explains the motivation behind the programme: With AI as a significant inflection point, it's crucial that we, as an industry, ensure everyone has a voice and a stake in shaping this new landscape. That means actively making training and resources more accessible to those who have historically been underrepresented in tech, so they can be part of this exciting future.

At the end of the day, everyone wins when we build a larger, more skilled workforce. It helps open doors to lucrative, in-demand careers for people from all backgrounds, whether they're in tech, marketing, HR, retail, or manufacturing. AI truly has the potential to benefit every industry and every role.

To help organisations and the industry itself combat the gender gap, the programme offers a comprehensive suite of resources to help participants achieve the Cloud Digital Leader certification at no cost, including a complimentary exam voucher, instructor-led training, dedicated exam prep sessions and expert panels on generative AI.

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Sluggish growth and blindsided by generative AI: Adam Selipsky’s predictable departure from AWS – ITPro

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.

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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.

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