"But when there's a big shift going on, you can howl at the wind all you want, but if the shift is going to happen because it's good for customers, it is going to happen."Īmazon faced a similar dilemma in its retail business when it decided to let third-party vendors sell products in its online marketplace, Jassy said. But once you realize that model is succeeding, it's important for your future to do so," he said. "I totally understand-it's a hard decision for companies who have been successful in a different model to decide to embrace a newer model. But Jassy told CRN it's time for solution providers-some of whom have found it difficult to align with AWS-to get on board.
Some enterprise vendors, like IBM and VMware, have tried to dissuade their partners from working with AWS.
AWS generated $1.57 billion in sales and $265 million in profit in its fiscal first quarter-the first in which Amazon broke out results for the unit.ĪWS followed that up with an even better performance in its fiscal second quarter, with revenue growing 81 percent year over year to $1.82 billion, and profit of $391 million compared with $77 million in last year's quarter. These days, given AWS' marketplace momentum, it's getting harder to paint the fast-growing business unit as an underdog. Legacy enterprise vendors had long talked about delivering these kinds of services, but AWS, under Jassy's leadership, beat them all to the punch.
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"Lots of companies and teams can fill whiteboards full of ideas and possibilities, but at the end of the day, where the rubber meets the road is being able to execute on those ideas in a way that customers care about and that resonates, and then continue to evolve that offering."ĪWS was an underdog in the computing space when it launched a platform of compute, storage, database and application services in 2006 that customers could rent by the hour and access over the Internet. "I'm not sure that people would have guessed that AWS would have been the pioneer and the strong leader in the infrastructure technology space," Jassy told CRN in a recent interview at Amazon's Seattle headquarters. In fact, Jassy sees similarities between the sneak attacks that both the Giants and AWS have executed on the competition. Jassy, who grew up in the New York suburbs and is a die-hard Big Apple sports fan, likes to think of AWS-which has legacy enterprise vendors scrambling to play catch-up-as the underdog equivalent of the New York Giants beating the favored New England Patriots in the Super Bowl, not once but twice. Deutsche Bank estimates that AWS is nearly 10 times the size of Microsoft Azure, its closest competitor, which launched five years ago. So just how fast is Jassy reshaping the computing landscape?, often characterized as a cloud computing pioneer, took 16 years to reach the $6 billion run-rate mark. That's even more impressive considering that Amazon itself was only a $5.26 billion business after nine years. Jassy, who founded Amazon Web Services (AWS) in 2003 with a team of 57 people, has built a $6 billion-plus run-rate business with more than 1 million customers in 190 countries in less than a decade. Andy Jassy, senior vice president of Amazon Web Services, has taken this philosophy to a whole new level. Amazon has built its entire business around the idea of moving quickly.
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