The AWS re:Invent conference is coming up. Andy Jassy does an interview with AWS CEO Andy Jassy. Much of the discussion reiterates why Amazon is a different type of competitor and how their leadership principles drive the culture. This includes key quotes by Andy Jassy:
- “We are hiring so many people all over the world and we have a very high hiring bar. We’re not willing to compromise in order to make sure we have the right quality of folks.”
- “But what enterprises have come to appreciate is that the culture is really different. We’re unusually customer-focused. We’re pioneers.”
- “…we’re not close to being done delivering capabilities for our customers”
While I didn’t read anything surprising in the interview, it does confirm “where the puck is going” for AWS. First, they will be building core AWS capability and “moving up the stack”. The best bets are always going to be common components and capabiltities, such as payments, security, identity and productivity, versus industry specific capability. Amazon has consistently shown that they will partner to create capabilities early, and over time build thier own competitive capability. Second, the internet of things (IoT) is going to be a big aspect of AWS capability, and they are building machine learning and event management capabilities which will attrack clients to use AWS as the platform. Finally, large investments in infrastructure will continue. I would not be surprised if infrastructure does not accelerate.
Amazon’s commander of the Cloud shares his vision
by Angel Gonzalez
Q:AWS has evolved into a $12 billion business in a decade. Why did it grow so quickly so fast? Was that growth a surprise?
A: I don’t think any of us had the audacity to predict it would grow to be that big when we were starting it. Before, companies and startups had to lay up all this capital for data centers and servers, and take your scarce resource, which in most companies is engineers, and have them work on the undifferentiated heavy lifting of infrastructure. What the cloud has done is completely flipped that model on its head so that you only pay for what you consume. You’re able to get work done so much faster than ever before. Startups and smaller companies got that revolution started, but we always expected large enterprises and government agencies to be very large AWS companies, because they have very large amounts of infrastructure to spend.
Q: Where is AWS now? Where is it going next?
A: We have a pretty significant market-leadership position, and we’re not close to being done delivering capabilities for our customers. We have a very broad geographic footprint, but we’re not close to being done. Over time we can expect we’ll have an AWS “region” (a cluster of data centers) in practically every Tier 1 country and a lot of developing countries as well We have a machine-learning service that we launched about a year and a half ago, and there are a lot of artificial intelligence (AI) machine-learning capabilities coming. We have a large number of people working in AI. If you look around homes and the workplace, there are all these sensors in many devices. This is what people commonly call the Internet of Things. These sensors have a small amount of (computing power) and memory. Which means the cloud becomes disproportionately important to supplement their capabilities. Most of the big IoT cases today are built on top of AWS. We are at the start of what we think is possible. Over time, many enterprises are going to think about their own infrastructure as servers and also as devices they use to collect data, do analytics and take action back on these devices. So that’s another area of significant investment for us.
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