It was shocking news that Amazon founder Jeff Bezos was stepping down as CEO. From October 2021, Andy Jassy will take over control of the supergiant Amazon.
Andy Jassy , an Amazonian to the bones, is not an engineer but is considered a delicate and competitive executive. Occasionally, he struck down competitors, especially with Oracle founder Larry Ellison. Within Amazon, he is known to have completed the independence of AWS, and Jassy's cloud computing division has grown into a $40 billion business.
Jeff Bezos, Andy Jassy's boss, and mentor wrote in a note to his employees: “Andy is not only well known within the company, but he has also been on Amazon for as long as I am. Andy will be an outstanding leader, and I fully support it.”
Jassy, an avid fan of the New York sports team and Dave Matthew's band, was one of the first employees Bezos first hired after listing on Amazon in 1997. At the time, Andy Jassy freshly graduated from Harvard Business School and worked as Marketing Officer, and later served as Vice President of Web Services, helping to turn Web Services into an independent business unit in 2006.
Andy Jassy, 53, is not well known externally, despite his strong position in Amazon. He tweeted infrequently and sometimes played a role in clearing controversy when he interviewed in earnest. On the direct side of social issues, he criticized former President Trump several times and actively supported the Black Lives Matter movement. He is recognized by peers and competitors throughout the IT industry.
Gartner analyst Ed Anderson said: “I didn't think Jeff Bezos would begin the process of handing over management from Andy Jassy. Bezos will still be involved in Amazon's operations, but Andy Jassy is a good choice as a CEO.” “Beyond the strengths of e-commerce, Amazon is fundamentally a technology-driven company. Andy Jassy knows better than anyone in the industry how to apply technology to transform and grow your business.”
"It's not only a visionary leader but also a powerful operator," said Brian Olsavsky, Amazon's CFO. And he has a considerable history of developing several products and businesses within Amazon. One of them is AWS, the most profitable and important technology business in the world.”
Amazon's former global consumer business CEO Jeff Wilk has long been considered Bezos' successor, but suddenly retired this year, opening the way for Andy Jassy to become CEO. Dave Clark has been the chief distribution officer since last year.
Choosing Jassy as Bezos' successor CEO shows that the cloud business is the new core of Amazon. "Consumer e-commerce is a big market, but B2B market is bigger," said Gartner analyst Alan Bond. Choosing the ones to lead the central enterprise solutions suggests that Amazon's future is actually selling more to businesses than to consumers. In the long run, it will achieve greater performance.”
But there can be no challenges in the position of chief executive officer. Amazon faces antitrust lawsuits in several countries, and competition with old enemies such as Microsoft and Google is increasingly fierce. Research on working conditions, particularly for low-wage drivers and distribution center workers, is also underway. On the same day that Bezos announced it was going to step down, Amazon settled a $62 million lawsuit with an independent driver over a stay on tipping.
“The key question is how to manage Amazon's inevitable challenges, such as antitrust, worker rights, and employee activism,” said Nick McQuire, vice president of CCS Insights. Jassy has expressed very frank opinions on various political issues in the past, and media surveillance will increase in the future.”
Who is in charge of AWS?
"It's Jassy's successor that's more curious than Bezos' successor," said Forrester analyst Paul Miller. "There are strong options inside, but they can also be used as opportunities to source fresh ideas from outside. Either way, AWS and Amazon are in a good position to give new CEOs a fresh perspective on their roles while building a solid foundation.”
Initially, there was an internal promotion, followed by AWS Sales Manager Matt Garman. Prior to taking on AWS's sales responsibilities, Garman held various roles within AWS. If Jassy thinks he needs more engineer roles here, then Charlie Bell, senior vice president, and 23-year AWS veteran is a natural choice.
What Jeff Bezos Will Do
Jeff Bezos will be Amazon's chief executive officer and will retain its immense influence over Amazon. According to the memo to the employee, Bezos plans to focus on "new products and early ideas." This is expected to include future mergers and acquisitions, as well as expansion into the medical and food businesses that Bezos has continued to strive for. It is worth remembering that AWS has not been aggressive in mergers and acquisitions over the past few years.
Bezos, the world's second-richest man, has recently expanded his interest in other areas, including the Day One Fund, Bezos Earth Fund, Blue Origin, and Washington Post. Bezos said, “There has never been a time when I was more energetic than this. And this is not retirement. "I'm so enthusiastic about the impact these organizations can have."
Jeff Bezos withdraws from Amazon's direct operations when the company performs at its best. On the day it announced its plans to change CEOs, Amazon announced its highest quarterly sales record of $125 billion.
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