![]() “The senior leadership team has to have conviction that you’re going to make a move to the cloud because inertia is a very powerful thing, and it’s easy to block in the middle,” Jassy said. There always are some technical challenges when shifting business functions from on-premises to a different medium such as the cloud, but the reality is most of enterprises’ biggest challenges are cultural and leadership- and process-oriented rather than technical, according to Jassy. Jassy On Challenges Encountered By Companies Moving To The Cloud All of that is moving to the cloud, and really the question now is … just when and how fast and in what order.” “We have this very strong view that we’ve had for a while, which I think you’re seeing borne out in the market, that in the fullness of time-and I don’t know if that’s 10 years from now or 20 years from now-relatively few companies will own data centers, and those that do will have much smaller footprints. “The three industries that I would say were most conservative moving were financial services, health care and oil and gas,” Jassy said. Jassy On Different Industries’ Speeds To The CloudĮvery imaginable vertical business segment is moving significantly to the cloud, according to Jassy. You get from an idea to implementation in several orders of magnitude faster.” In the cloud, you can provision thousands of servers within minutes, and then we have 165 services that you can put together and use in whatever combination so want. “If you actually find something that you like and want to roll out, it takes longer, and then you have to build all of this surrounding infrastructure software like compute and storage and database and analytics and machine learning. “If you look at most companies’ on-premise infrastructure, to get a server typically takes 10 to 12 weeks,” he said. 1 reason enterprises and governments are moving to the cloud is the agility and speed with which they can change their customer experiences, according to Jassy. “If it turns out you need more, you seamlessly provision up in minutes, and if it turns out you need less, you give it back to us and stop paying for it.”īut the No. ![]() “In the cloud, you just provision what you need,” Jassy said. “We’ve lowered our prices on 70 different occasions in the last 10 years-largely in the absence of any competitive pressure to do so-just because the DNA inside Amazon is we relentlessly work to take out costs to give those back to customers so they can do more. “The variable expense is lower than what virtually every company can do on its own because we have such large scale that we pass on to customers in the form of lower prices,” Jassy said. Not having to lay out capital up front for servers and data centers, and instead paying for cloud as a variable expense as they consume it, is very attractive, he said. He also spoke to Amazon’s culture, the importance of hiring “builders,” speed to market and having senior leaders who are open to big ideas and tolerate failure in the roughly half-hour conversation at the annual energy conference in Houston hosted by IHS Markit.Īnd Jassy filled in the audience about Amazon’s prohibition on PowerPoint presentations.ĪWS is a $30 billion revenue-run-rate business that’s growing about 45 percent year over year in the midst of a “titanic shift” to the cloud, Jassy said.Ĭost is almost always the “conversation starter” when it comes to companies moving to the cloud. In a wide-ranging technology leadership talk at CERAWeek 2019, Jassy talked about the cloud’s value proposition and the challenges it presents for some companies, and the new technologies most piquing his interest. 1 Amazon Web Services, according to Amazon Web Services CEO Andy Jassy. The top reason why companies and governments are moving to the cloud is the speed and agility with which they can change customer experiences, and security has become one of the top selling points for choosing No.
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