AWS CEO Adam Selipsky is bullish on the cloud computing transition, telling CNBC’s Jim Cramer that “most of it’s still yet to come.”
Selipsky succeeded Andy Jassy as AWS CEO when the latter replaced Jeff Bezos as CEO of parent company Amazon. AWS is currently the market leader in cloud computing, but Selipsky believes there is still plenty of room for growth in the market.
“It’s possible that AWS could become the largest business at Amazon. Now, Amazon has other large and great businesses, and so it could take a while for us to get there,” Selipsky said in an interview on CNBC’s “Mad Money.”
“Essentially, IT is going to move to the cloud. And it’s going to take a while. You’ve seen maybe only, call it 10% of IT today move. So it’s still day 1. It’s still early. … Most of it’s still yet to come,” he added.
Selipsky’s comments echo those of his boss when he was still CEO of AWS.
“It’s still really early days,” said Andy Jassy, speaking about the cloud in 2019. “Sometimes we remind ourselves that even though it’s a $30 billion revenue run rate business growing 45 percent year-over-year, it’s the early stages of enterprise and public sector adoption in the US. Outside the US they’re 12 to 36 months behind depending on the country and industry.”
Amazon recently turned in its first quarterly loss since 2015. Meanwhile, AWS was a bright spot for the company, continuing to grow 36.5% year-over-year. Like many cloud providers, AWS greatly benefited from the pandemic-fueled drive to transition to the cloud.
If Selipsky is right, AWS’ best days are yet to come.