Daily Management Review

Jeff Bezos To Step Down As Amazon CEO And Hand Over Reigns To Cloud Biz Head Jassy


Jeff Bezos To Step Down As Amazon CEO And Hand Over Reigns To Cloud Biz Head Jassy
The founder and CEO of Amazon.com Jeff Bezos will step down from his post and become executive chairman.
He will be succeeded by the chief of the company’s lucrative cloud computing business which signals the shift of the company to becoming an internet conglomerate from a web based retailoring firm.
Andy Jassy, chief of the company’s cloud computing business Amazon Web Services known as AWS will replace Bezos, 57, this summer. This announcement made by the company also bring to an end a long standing question about who would be the successor of Bezos to run the biggest on line retailer of the world.
Bezos is also the second-richest person in the world.
The end of Bezo’s career as the CEO of Amazon.com was on a high note with the business having started as an internet bookseller 27 years ago and has transformed to become one of the most valuable companies of the world. Under him the company reports three consecutive years of record profits after losses in the preceding decades.
For the first time in its history, Amazon reported quarterly sales above $100 billion on Tuesday.
AWS was founded by Jassy, 53, since he joined Amazon in 1997 after Harvard Business School. The cloud platform AWS is used by millions of customers, according to the company’s website. Since Amazon created two CEO roles who reported to Bezos years ago, his candidature for the top job was quite clear. The other CEO of the company was the recently retired consumer CEO Jeff Wilke.
The centrality of the web hosting business to Amazon’s strategy was underscored by  Jassy’s promotion, said Tom Johnson, chief transformation officer at global marketing firm Mindshare.
“Jassy’s background in steering AWS shows just how top of mind those services are to Amazon’s business strategy. It’ll be interesting to see how that affects their strategy and balancing that priority with a growing ad business and the commerce behemoth,” he said.
One of the advantages for Jassy is his acute understanding of highly technical details, he is also known for his regular attacks on the legacy player Oracle Corp and the of the cloud computing segment rival Microsoft Corp. AWS is still ahead of Microsoft in this in the growing business segment of cloud computing. In contrast, muh fewer public remarks about competitors have been made by Bezos.
Major consumers including Verizon, McDonald’s and Honeywell have been roped in by AWS under the leadership of Jassy. AWS has been used for long by Silicon Valley startups. In 2019 there was a 37 per cent growth in the division’s annual revenue while it reported a 30 per cent growth in 2020 which has made it the market leader.
The $10 billion “JEDI” project from the Pentagon was one contract that AWS failed to win. It was awarded to Microsoft.
“As Exec Chair I will stay engaged in important Amazon initiatives but also have the time and energy I need to focus on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post, and my other passions.” Blue Origin is Bezos’ space company, said Bezos Bezos in a note to employees posted on Amazon’s website.
He added, “I’ve never had more energy, and this isn’t about retiring.”