Amazon: More Than Warehouse Staff Hired?

April 10, 2020

Google and Microsoft are taking away some of Amazon’s growing technological power. Jeff Bezos is not happy that, so AWS is hiring more people. What is the logic behind that? The Register explains why in the article, “AWS To Double Sales Droids As. Google, Microsoft’s Growing Clouds Threaten To Gobble Larger Slices of Bezos’ Pie.”

Due to the growing amount of sales Google and Microsoft are making in their cloud departments, AWS is hiring more sales people. AWS hopes that by increasing their sales staff they will make more sales and steal customers away from its rivals. These will not be regular sales people, though. AWS is hiring experts in security, AI, and data analytics. AWS will not reveal the size of its sales team or the exact number of people its hiring. Supposedly there are thousands on the team.

AWS currently dominants the cloud computing market at 32.3%. Microsoft has 16.9% and Google has 5.8% of the market. Will that growth last in 2020?

“But the Jeff-Bezos-run titan’s enormous growth has begun to slow recently as other providers catch up. Of the big four cloud providers, Google grew the most last year, swelling 87.8 per cent, Microsoft came in second, with 64 per cent growth. Alibaba was close behind with 63.8 per cent. But AWS’s growth, at 36 per cent, was half that of its nearest rival. AWS still posted the biggest revenue increase in absolute terms – with $9.2bn compared with Microsoft’s $7.1bn – but many saw the pair’s recent financial results as an early sign that rival services were beginning to catch up with Bezos’ behemoth.”

Google also plans to triple its size team, while Microsoft is trying to poach AWS’s cloud clients. So far Microsoft has been successful. The best example is that Microsoft won the Department of Defense’s $10 billion decade-long JEDI IT supply deal. AWS did not like that business decision, so AWS appealed and the courts will decide if the contract was fairly awarded.

The new hiring is the biggest business move from AWS in years. AWS wants to focus less on its basic services that assists organizations in developing products to actually building the finished product themselves and selling them. The battle is on for the cloud market, but it looks like thugs are going to go the Google way. Google controls most of western searches and AWS will control most cloud computing systems.

Whitney Grace, April 10, 2020

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