Amazon today named the next leader of Amazon Web Services (AWS), the world’s largest public cloud provider. Adam Selipsky will return to the company, following a nearly five-year break from Amazon as the CEO of Tableau, in a couple months, the tech giant announced today.
Andy Jassy, who will vacate the position of CEO at AWS when he takes the reins of Amazon sometime this summer, said Selipsky “brings strong judgment, customer obsession, team building, demand generation, and CEO experience” to the role, in a blog post about the hire.
“Adam is not a new face to AWS. Back in 2005, Adam was one of the first VPs we hired in AWS, and ran AWS’ sales, marketing, and support for 11 years,” Jassy wrote. “Having been in such a senior role at AWS for 11 years, he knows our culture and business well.”
Selipsky ran Tableau leading up to and following Salesforce’s $15.7 billion acquisition of the software vendor in 2009. He’ll soon be in charge of Amazon’s cloud business, which generated $12.7 billion, or 10% of Amazon’s total revenue in fourth-quarter 2020 and accounted for nearly half of its profit during the quarter.
Amazon simultaneously shared those results and CEO Jeff Bezos’ decision to step down last month. In doing so, the company also stressed the importance of its cloud business in dramatic fashion by elevating the current leader of AWS to run the entire company.
Analyst reactions to the executive change at Amazon proper and how it might impact AWS going forward are overwhelmingly positive.
Selipsky is slated to join AWS on May 17 and “we will spend the subsequent several weeks transitioning together before making the change sometime in Q3,” Jassy wrote.
“With a $51 billion revenue run rate that’s growing 28% year over year, it’s easy to forget that AWS is still in the very early stages of what’s possible,” he explained. “Less than 5% of the global IT spend is in the cloud at this point. That’s going to substantially change in the coming years.”
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