He was appointed to the position of Amazon’s largest moneymaker. He now faces new challenges

Selipsky was not unfamiliar with AWS. Selipsky was a first-time employee of the Amazon cloud computing department In 2005, the company’s services were not publicly accessible. Selipsky left the company after 11 years. Selipsky returned to Tableau Data Visualization firm in 2005 after five years of being away. The industry and business landscapes had changed dramatically during his absence. A new set of challenges awaits.

AWS’s annual revenue nearly quadrupled during that period. A pandemic caused a massive surgeIn demand for cloud computing services and cloud-based computing. But The competitive landscape has also intensified. AWS is the industry leader in cloud technology, and has been for many years. However, there are other competitors like Microsoft (MSFT) Azure and Google (GOOGL Google)Cloud has taken some of its market share.
Microsoft was awarded a contract by the Pentagon to upgrade its IT infrastructure. The deal is estimated to be worth $10 billion over 10 year. This deal is a significant blow to AWS which had previously signed a similar deal with the department. After Amazon protested that President Donald Trump had improperly influenced the contract, the contract was cancelled. However, it indicated that AWS might not be the best choice for major projects.
Now, both companies are expected to bid — potentially along with others such as Google Cloud and Oracle — for the Defense Department’s new Joint Warfighting Cloud Capability (JWCC) contract to replace the 2019 deal.

Selipsky, who was speaking for the first time since he became AWS CEO in September, seemed confident about his company’s future prospects. According to Selipsky, his company is still ahead of Microsoft in winning government contracts.

He said that “We were the first cloud company to secure large, significant government contracts in all areas of government” in an exclusive interview with CNN Business last week. The interview took place in the AWS Skills Center, the company’s headquarters. He said that he learned a lot about cloud implementations, and worked closely with federal government clients.

He added: “I think you’ll find, particularly given our leadership position, that our competitors spend a lot more time talking and worrying about AWS than we do about them — we choose to focus on our customers.”

(While such contracts are good for business, some employees have previously taken issue with the company’s work for certain government agencies, including Immigration and Customs Enforcement — a dynamic that may only add to Selipsky’s challenges in the role.)

Selipsky claimed that Amazon did not anticipate being the sole winner in cloud computing. And the industry has certainly gotten large enough to accommodate more than one major player — public cloud spending is expected to reach more than $300 billion this year, according to Gartner estimates starting in April.

He stated that competition is inevitable in any market segment with a fast growth rate. We have always believed there would not be many winners. But a handful of winners emerge that are fiercely competitive. However, we are still the major leader.

We encourage employees to speak up

Shortly After Selipsky assumed control of AWS, the company faced a new challenge from within. A group of employees circulated the petition alleging harassment and discrimination against women and minorities within one of the AWS business unit. After that, the company hired an external firm to investigate. Similar employee activism has been reported at Apple, Google, and Activision Blizzard.
While some companies may be hesitant about employee organizing (AWS parent Amazon has been criticized for its anti-union efforts), Selipsky stated that workers who speak out could ultimately prove to be a good thing for the company.
Amazon hires outside investigators after employee petition alleges discrimination and harassment

“I really like the fact that people are bringing their whole selves to work and that they’re speaking out — we really encourage that,” he said. “I have found that it is possible to work with people if you have a great process and listen well. Even if they don’t agree with you, you can all come together and work together.

He continued: “I am really happy that so many topics are being discussed in today’s workplace that were not discussed as much five, 10, or 20 years ago.

A growing concern about the cloud industry is the fact that many of the data centers it uses are highly energy-intensive. A lot of this computing still relies on fossil fuels. But Selipsky stated that AWS is trying to change that to keep Amazon’s larger commitment to being net carbon zero by 2040. Amazon’s climate promise was made public in 2019, just before employees planned walkouts over inaction on climate change.

“Amazon plans to be 100% renewable by the year 2025… and we are already approximately two-thirds the way there, so it’s significant progress,” he stated. We must use renewable energy to make them as large and efficient as possible, given their scale and the fact that they have data centers. [2040] goal. We do a lot ourselves innovating, and we partner with a lot more companies, governments, and nonprofits to help us reach these goals.

Selipsky will get his first opportunity to address customers at AWS’s annual conference, Re:Invent, which takes place in Las Vegas this month. Customers can expect announcements regarding some of the “oldest and most fundamental services” such as compute, databases and storage. However, Selipsky also stated that customers can look forward to “exciting announcements concerning higher-level services and solutions specific to their industry.”

“It is vital that we continue to comprehend the meaning of these words.” [customers’]”We are going to adapt with their changing needs and we will evolve along with them,” he stated.