SAN FRANCISCO: On Tuesday, Amazon.com Inc. said founder Jeff Bezos would step down as CEO and become executive chairman, as the firm for the first time posted a third straight record profit and quarterly revenue over $100 billion.
Bezos, 57, will hand over the keys to the world’s biggest internet store this summer to Andy Jassy, president of the branch of cloud computing. The announcement ends a long-running debate as to who will replace the second-richest individual in the world at the helm of the business.
After Harvard Business School, Jassy, 53, joined Amazon in 1997, founding Amazon Web Services (AWS) and extending it as a cloud network used by millions, the company’s website said. Because Amazon produced two CEO positions reporting to Bezos, the other filled by recently retired customer CEO Jeff Wilke, he has been a strong candidate for the top position.
Tom Johnson, Mind-share Worldwide’s chief transformation officer, said the promotion of Jassy underscored the value of online services to the future of Amazon.
The history of Jassy in AWS steering reveals just how top of mind those programmes are to the corporate plan of Amazon. It would be fascinating to see how this impacts their policy and combines that priority with a growing ad company and the behemoth of commerce,” he said.”
Jassy is famous for learning technical specifics, and he has frequently taken jabs at legacy player Oracle Corp and cloud competitor Microsoft Corp, which AWS continues to surpass in revenue.
Amazon’s cloud division has signed big companies, including Verizon, McDonald’s and Honeywell, under Jassy’s leadership. The quarterly sales of the division grew steadily by double digits, helping to consolidate its position as the industry leader.
The $10 billion ‘JEDI’ deal from the Pentagon, which was awarded to Microsoft, was one contract AWS declined to receive.
At the annual Las Vegas conference of AWS, Jassy gave a rock-star atmosphere to keynotes, speaking before more than 60,000 attendees in 2019 after upbeat music accompanied his chat.
In a letter to workers posted on Amazon’s website, Bezos, who founded the organisation 27 years ago as an internet bookseller, said, “As Exec Chair, I will remain involved in significant Amazon initiatives but also have the time and energy I need to concentrate on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, the Washington Post, and my other passions.” Blue Origin is the space company of Bezos, and the Post is his space company. He said, “I’ve never had more energy, and it’s not about pulling back.”
When shoppers turned to the world’s biggest online marketplace for their holiday shopping, Amazon’s net revenues rose to $125.56 billion, exceeding analyst expectations of $119.7 billion, according to IBES statistics from Refinitiv.