Raising Andy Jassy to become Amazon’s next CEO. com Inc. is one of the clearest signs yet that happiness in the technology industry is increasingly being made in the cloud.
Mr. Jassy was instrumental in helping the online retail giant he joined in 1997 also become a key player in cloud computing, which rents out servers and software to customers, primarily on a pay-as-you-go model. . This is a market that according to research firm Gartner Inc. could fetch $ 300 billion worldwide this year and set Amazon up against tech giants like Microsoft Corp and Google, Alphabet Inc.
The battle for the cloud is taking place in industries – from video games to cars to space – and large and small businesses.
For Amazon, cloud computing was a thriving business that was very profitable. Amazon Web Services, or AWS, generated just over 10% of Amazon’s total sales in the last quarter of last year, but accounted for more than half of the company’s operating profit during the period. AWS revenue increased 28% during the three months of the year to $ 12.7 billion, and operating profit was $ 3.6 billion.
For executives, the cloud is increasingly becoming a springboard on corporate learning. Microsoft CEO Satya Nadella managed the software giant’s cloud business before being promoted to the best position in 2014. International Business Machines Corp. turned to its cloud chief last year when it appointed a new CEO to revive growth.