“We’re preparing to launch two prototype satellites to test the entire end-to-end communications network this year, and plan to be in beta with commercial customers in 2024,” he added. “It’s capital intensive at the start, but has a large prospective consumer, enterprise, and government customer base, significant revenue and operating profit potential, and relatively few companies with the technical and inventive aptitude, as well as the investment hypothesis to go after it,” he wrote. Jassy argued that Amazon’s “Kuiper” satellite broadband service is now at the same stage as AWS during that downturn. Amazon lays off another 9,000, because why not?.AWS security exec: You don't want to win this database popularity contest.AWS debuts generative AI stuff so smart you might give it your money twice.Just because on-prem is cheaper doesn’t make the cloud a money pit.His letter argues that other Amazon businesses are earlier in their development than AWS, so while the economic climate will be reflected in some wobbles that make investors feel jittery, Amazon is investing in new businesses that will fuel future growth.Įxhibit A for the prospects of that plan is AWS itself, which Amazon funded extensively during the global financial crisis of 20. Yet as Jassy observed, “with about 90% of Global IT spending still on-premises and yet to migrate to the cloud” AWS still has plenty of upside. Microsoft’s “more personal computing” business earned almost $60 billion of the company’s $198 billion FY 22 revenue leaving its business-derived revenue a few years of growth ahead of AWS’s. Of Dell’s $102 billion FY 2023 revenue, $89.4 billion was won from businesses – AWS is just $4 billion behind that sum now and closing fast. The Amazon founder prepares to step back just as Washington turns up the heat. That makes AWS bigger than Cisco, Lenovo, HPE, Oracle, and SAP. Opinion Amazons Jeff Bezos Prepares to Step Back, and Andy Jassy to Step In. Jassy also observed that AWS’s run revenue rate is now $85 billion a year and grew 29 per cent year on year from $62 billion in 2022. Jeff Bezos has officially stepped down from his role as Amazon CEO. The CEO also talked up the improved price/performance of the Graviton CPU, although cloudy analyst Corey Quinn disputed that claim, tweeting “r Graviton2 -> Graviton3 instance equivalents are over 6% *more* expensive like-for-like.”

“We’re not close to being done innovating here, and this long-term investment should prove fruitful for both customers and AWS,” he wrote, referring to the Inferentia silicon aimed at machine learning workloads.

Back to Jassy’s letter, which also mentions AWS’s intention to develop more custom silicon.

Jeff prepares step back andy jassy