Amazon.com, Inc. Presents at Goldman Sachs Technology & Internet Conference 2020, Feb-12-2020 12:30 PM - NasdaqGS:AMZN

NasdaqGS:AMZN

During the presentation and question-and-answer session, Andrew R. Jassy, the CEO of Amazon Web Services (AWS), discussed a variety of topics. Below is a detailed summary of his remarks:

On the Scale and Growth of AWS:

• AWS has a $40 billion revenue run rate, growing at 34% year-over-year.
• AWS serves millions of active customers, defined as non-Amazon entities using the platform in the last 30 days, across a broad and diverse group.
• Initially focused on startups, AWS now serves enterprises and public sectors across various verticals, including financial services, healthcare, manufacturing, and the public sector.

On Innovation within Large Organizations:

• Hire builders who are inventive and willing to iterate and improve continuously.
• Organize teams to move quickly and autonomously.
• Provide building blocks for teams to move quickly.
• Foster a culture that encourages innovation and tolerates failure.

On the Stage of Cloud Adoption:

• Cloud adoption is still in its early stages, likening it to the bottom of the first inning with runners on base.
• Only 3% of global IT spend is in the cloud, but it is moving fast.
• In the future, very few companies will own data centers, with most workloads moving to the cloud.

On Artificial Intelligence:

• AWS has been working with AI and machine learning for over 20 years.
• AI is deeply embedded in all of Amazon's businesses and capabilities.
• AWS provides services and capabilities to make AI more accessible to enterprises, including tools for expert practitioners, services for everyday developers, and pre-built models for those who want to plug into existing solutions.

On Investment and Motivation:

• Cost savings are a significant driver for cloud adoption, turning capital expenses into variable expenses.
• Agility and speed are the primary reasons enterprises move to the cloud to innovate more rapidly.
• Senior leadership must be committed to the transition and set aggressive goals to overcome inertia.

On the Competitive Landscape:

• AWS has a significant market leadership position due to its extensive functionality, larger ecosystem of partners, and the maturity of its platform.
• Experience and scale have provided AWS with unique insights and capabilities that newer entrants lack.

On Channel Conflict:

• AWS reassures customers that Amazon's disruptive presence in retail and technology infrastructure does not automatically mean decline for other businesses.
• Companies that listen to customers and evolve their offerings can succeed alongside AWS.

On Government Regulation:

• Supports thoughtful regulation to prevent irresponsible use of technology while avoiding overregulation that stifles innovation.
• Emphasizes the importance of holding users accountable for irresponsible use rather than banning technology outright.

On Information Security:

• Security is the top priority at AWS, with a culture and mechanisms in place to ensure robust security practices.
• AWS provides a range of security services and complies with numerous industry certifications and standards.

On Climate Change and Sustainability:

• Acknowledges the importance of addressing climate change and Amazon's commitment to sustainability.
• Discusses the inherent energy efficiency of cloud computing compared to on-premises data centers.
• Outlines Amazon's initiatives to reduce its environmental footprint, including investments in renewable energy projects.

On Talent Management:

• Highlights the importance of hiring builders and fostering a culture that allows them to thrive.
• Emphasizes the need to eliminate bureaucracy and maintain a focus on innovation to retain top talent.

These points summarize Andrew R. Jassy's comments during the presentation and Q&A session.