Amazon CEO Andy Jassy on Thursday said that the cloud arm of the company, Amazon Web Services (AWS), is expected to face short-term headwinds which could impact its growth rate.
Jassy said that the growth rate is expected to soften despite AWS growing 29 per cent year-over-year (YoY) in 2022 on a USD 62 billion revenue base. He said that companies are being more cautious in spending given the challenging, current macroeconomic conditions.
In the current conditions, Jassy emphasised that AWS is taking a different stance as compared to others during these tough times.
“In AWS, like all our businesses, we’re not trying to optimize for any one quarter or year. We’re trying to build customer relationships (and a business) that outlast all of us; and as a result, our AWS sales and support teams are spending much of their time helping customers optimize their AWS spend so they can better weather this uncertain economy,” he said.
Jassy said that AWS’ new customer pipeline is “robust” and so are the active migrations.
Many companies use discontinuous periods like this to step back and determine what they strategically want to change, and
The Amazon CEO noted that he found an increasing number of enterprises opting out of managing their own infrastructure and preferring to move to AWS to “enjoy the agility, innovation, cost-efficiency, and security benefits”.