[줌인] From Intel and MS to Amazon… Cloud experts who are the’big tech head’

Input 2021.02.04 11:13

Cloud business, only 10% of total Amazon sales, but half operating profit
“AWS’ cloud innovation DNA aims to port across Amazon”
Microsoft appoints cloud expert to break slump and succeed
“In the era of corona, innovation is difficult without management’s understanding of cloud”

A large IT company that recently appointed CEO of Amazon Web Services (AWS), a subsidiary Amazon Web Services (AWS), CEO Andy Jash as the successor of Amazon CEO Jeff Bezos, and previously appointed cloud experts such as Microsoft (MS) and Intel. Examples of companies are being illuminated. This means that the traditional e-commerce, semiconductor, and software companies representing the United States have declared cloud technology the most promising growth engine.

On the 3rd (local time), the Wall Street Journal (WSJ) announced that CEO Jeff Bezos, who founded Amazon and raised it to become a global IT company, will be headed by Amazon, and Andy Jashiga, the representative of AWS, a subsidiary that accounts for about 10% of Amazon’s total sales An article was published that analyzes the reason for this.



(From top) Andy Jassie, AWS CEO, Satia Nadella, MS CEO, Pat Gelsinger, former VMware CEO. /Provided by each company

WSJ pointed out that AWS accounts for a low portion of Amazon’s total sales, slightly exceeding 10%, but is profitable, accounting for more than half of Amazon’s total operating profit. In addition, since the era of artificial intelligence (AI), big data, and 5G, the importance of cloud infrastructure continues to grow, and the fact that this trend is accelerating after Corona 19 is an important background for this appointment.

“This appointment of CEO Andy Jassy tells us how important the cloud is to the global economy,” said Rishi Zaluria, an analyst at DA Davidson, an investment analysis firm in the United States. “Amazon wants to implant the innovation DNA that has grown AWS into the world’s number one cloud company,” he said.

Cloud infrastructure is recognized as a simple business service for businesses, but in recent years, it has become a key element in all fields of new industries such as artificial intelligence, games, entertainment, autonomous vehicles, and aerospace industry. Experts explain that the importance of the cloud-based data collection and use depends on the success or failure of corporate management.

The most representative example of successful resurrection through the cloud is the re-leap of Microsoft (MS). Microsoft has been stuck in a slump for 10 years since the mid-2000s. As the IT trend shifted from PC to mobile, Apple and Google were triumphant, while Amazon dominated the cloud market, while Microsoft was obsessed with the PC operating system (OS) Windows created by founder Bill Gates. For a long time, in the IT industry, “MS is dead” and “Nobody is afraid of Microsoft.”

It was Satia Nadella, a cloud expert who woke up Microsoft, who had been sleeping for 17 years, who became CEO in February 2014. Nadella announced a new vision of’mobile first, cloud first’. It is going to jump into the cloud market by breaking away from the traditional way of sticking to only Windows. The cloud market was already dominated by Amazon’s Amazon Web Services (AWS), but Nadella took a bold challenge.

Microsoft has hit a niche market with Azure, a public cloud service. It differentiated from AWS by providing integrated software such as Windows and Office 365, not just a service that only rents data storage space. In addition, he has not spared investments in the cloud business, including setting up numerous data centers around the world. Areas that were judged to be unconfident, such as the smartphone business, were given up without regret and made a clear choice and concentration. Microsoft is steadily increasing its market share in the cloud market, surpassing Google, and is in second place after AWS. Based on the expansion of the cloud business, it regained the No. 1 position in market capitalization after 4 years of inauguration as the CEO.

Intel, who has traditionally enjoyed a reputation as one of the world’s best semiconductor companies, and faced a crisis in recent years by being defeated by AMD and other Asian semiconductor companies in technology, also recently appointed CEO Pat Galsinger as a relief pitcher. Gelsinger’s CEO, like Satia Nadella’s CEO, is a former engineer who has accumulated expertise in the cloud field.

In the past 30 years, as’Intel Man’, he became the chief technology officer (CTO) and was also mentioned as the next CEO candidate, but after leaving Intel and sitting as the CEO of VMware, a cloud computing company, he has more than tripled sales and has the ability in the cloud business. Proved. Intel’s appointment as CEO by bringing in Gelsinger again this time is also interpreted with the intention to increase Intel’s influence in the fastest-growing cloud field by actively absorbing the fastest changing IT trends.

An official in the domestic IT industry said, “MS has quickly released’Tims’, a remote work solution, and has emerged as a strong competitor to Zoom in an instant, because solid cloud technology is already on the ground.” Having a cloud expert at the head is also throwing a message that CEOs must have an understanding and expertise in the cloud ecosystem in the corona era.”

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