"Right now I see Amazon at its most inventive ever..."
Jeff Bezos To Step Down as CEO, Replaced By Cloud Chief
- Amazon (NASDAQ:AMZN) CEO Jeff Bezos announced yesterday he was stepping down as CEO effective Q3 2021, to be replaced by Amazon Web Services CEO Andy Jassy.
- Bezos will remain Amazon’s largest shareholder and transition to an Executive Chairman role, where he will continue to be involved in important strategic decisions.
- Amazon also announced Q4 2020 was its first $100 billion quarter at $125.56 billion in revenue, with cloud computing at $12.7 billion.
- A Natural Conclusion: Jeff Bezos had stepped away from Amazon’s day-to-day responsibilities, with Andy Jassy serving as one of his primary deputies. However, since the beginning of the pandemic, Bezos heavily reengaged with the business and addressed everything from supply chain challenges to health protections.
- An Old Hand in a New Business: Jassy joined Amazon in 1997 and has been responsible for AWS’s rise to an unparalleled $50 billion run rate. Today, AWS has a market share of approximately 33% (versus Microsoft, its closest competitor, at 22%).
- AWS In the Spotlight: Analysts expect AWS to become even more strategically important to Amazon as a whole, especially given the pandemic-driven shift to technology. Jassy’s replacement as AWS CEO has not yet been announced though infrastructure VP Peter DeSantis and sales and marketing VP Matt Garman are described as top prospects.
Positive for Partners: AWS partners have given Jassy positive reviews in his tenure as AWS chief, citing the organization’s channel-friendly mentality and its featuring partners in its business model. In fact, the demand for AWS partners on an M&A front has grown with the demand for broader cloud services, with buyers from consulting giants to private equity firms seeking out their high margin cloud revenue.
For more information, click here for Amazon’s Q4 Earnings announcement.