Amazon Web Services CEO Andy Jassy said his company is besting other legacy tech providers because it is customer friendly, focused on innovation and long-term oriented, according to Business Insider.
In just 10 years, AWS has become the leading cloud provider with $10 billion in sales. The enterprise technology unit is also Amazon’s most profitable division, responsible for 56% of the entire company’s profit in Q1.
AWS’ formula for success is that it spends 90% of its time doing what customers want, and the other 10% doing "what customers need but can't articulate," Jassy said, speaking Tuesday at an Amazon event in Washington D.C. Meanwhile, legacy tech companies "have lost their will or their way to invent."
Legacy technology companies have continued to struggle as cloud companies have boomed. A report released last month from Synergy Research found that the overall cloud market grew by an astonishing 50% in the first quarter of 2016. The cloud market pulled in more than $7 billion in the first three months of the year, dominated by Amazon Web Services, Microsoft, IBM and Google, according to the report. Though both Microsoft and Google doubled their revenues in a year, the companies still significantly trail AWS.
Many companies initially want to work with multiple cloud service providers, but in the end they choose AWS, Jassy said.
AWS focuses on the long-haul and would prefer to ensure long-term customer relationships than worry about short-term blows to profit, according to Jassy.
But, as companies settle on either one, or in some cases, multiple cloud service providers, there is still room for growth. In particular, Jassy highlighted the potential geographic expansion beyond the current 12 AWS regions hosted around the globe with five more planned for this year.
"I think you should expect to see a lot more geographic expansion from us in the coming years," Jassy said, according to GeekWire. "I think virtually every Tier 1 country will have an AWS region."