Adam Selipsky, the CEO of Amazon's cloud division, Amazon Web Services (AWS), has announced he will step down next month. Matt Garman, who currently leads sales and marketing at AWS, will take over as CEO on June 3.
Selipsky, who has been with AWS for about 14 years, stated in a memo to employees that he wants to focus on spending more time with his family. He expressed confidence in the bright future of AWS and mentioned that this is the right time for him to transition and recharge.
Amazon's CEO, Andy Jassy, praised Selipsky for his effective leadership and highlighted Garman's extensive experience and strong skill set as ideal for his new role as AWS CEO.
Before joining AWS, Selipsky was the CEO of Tableau, a company owned by Salesforce that specializes in data visualization software. He took the AWS CEO role in 2021 when Jassy became Amazon's CEO, succeeding Jeff Bezos.
During Selipsky's tenure, AWS faced challenges like slower revenue growth due to higher interest rates, which led companies to cut their cloud spending. AWS has also had to lay off more than 27,000 employees as part of broader company cuts.
However, AWS has seen increased demand for services related to generative artificial intelligence, mainly due to the rise of OpenAI, backed by Microsoft. AWS invested $4 billion in Anthropic, a company founded by former OpenAI employees, making AWS its main cloud provider and using AWS's AI chips.
AWS remains the leading cloud service but faces growing competition from Microsoft's Azure, which has significantly increased its market share. AWS is still one of Amazon's most profitable units, generating $9.42 billion in operating income in the latest quarter, accounting for 62% of Amazon's total.
Selipsky's compensation in 2022 was $41.1 million, mostly from stock awards. He did not receive stock grants this year.
This announcement follows other high-profile departures at Amazon, including Dave Limp, the devices chief who left for Bezos' Blue Origin, and other executives from Amazon's Alexa and hardware research teams.
Key Points
Adam Selipsky, CEO of Amazon Web Services, is stepping down to spend more time with his family, with Matt Garman set to take over as the new CEO.
AWS faces challenges like reduced revenue growth and increased competition, but remains a major profit center for Amazon, contributing significantly to its operating income.
FAQs
Q1. Who is replacing Adam Selipsky as CEO of AWS?
Matt Garman, the current senior vice president of sales and marketing at AWS, will become the new CEO after Selipsky steps down.
Q2. What does Adam Selipsky do for Amazon?
Adam Selipsky is the CEO of Amazon Web Services (AWS), the cloud computing division of Amazon. In this role, he oversees the management and strategic direction of AWS, which includes providing cloud services to businesses and individuals worldwide. He is responsible for leading the company's growth, addressing challenges, and maintaining its position as a leader in the cloud industry.
Q3. Who is AWS' biggest competitor?
AWS' biggest competitor is Microsoft's Azure. Azure is another major cloud service provider that offers similar services to businesses and individuals. It has been growing rapidly and gaining a larger share of the cloud market, challenging AWS's leading position.
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