Amazon's cloud head, Adam Slipsky, reportedly said it was not planning to spin off its lucrative AWS cloud division.
"We are not going to spin off the cloud right now," Selipsky said. "We think customers can be well served by having AWS as part of Amazon."
AWS is the largest provider of leased computing capacity and other cloud computing architectures. The division generated more than $62 billion in 2021 revenue, accounting for about 74% of Amazon's $24.9 billion operating profit.
Selipsky rejoined AWS last year after founding CEO Andy Jassy took the helm at Amazon. He believes the cloud computing market is still in its early days. Depending on the measurement, only 5 to 15 per cent of corporate technology spending is currently going into cloud computing, he says.
As long as Amazon continues to grow rapidly, AWS can continue to be a leader in cloud computing infrastructure and services as the market grows, he said. "I think our market share can definitely be maintained and maybe even grow, but it depends on how well we do." He said.
While AWS has made small acquisitions in the past, Mr. Selipsky said the division was now open to deals of all sizes. But because of the difficulty of integrating large acquisitions in the tech industry, they prefer "tuck-in" acquisitions, which incorporate the target as a unit.
Asked what he thought of Elon Musk taking Twitter private and whether Amazon would buy the social network, Selipsky dodged a question.
"I don't know about that. A big part of Amazon's business is built around ecosystem partners." 'We have strong relationships with many companies that have a broad social footprint,' he says. Whether it's AWS customers, whether it's acquiring users or sending and receiving messages in the retail business, we're increasingly leveraging social channels in the retail business to provide shopping experiences. So we're very intertwined with social media companies, and I can imagine all of our businesses will continue to be so intertwined."