Amazon will not spin out AWS, but more acquisitions incoming

Amazon isn’t ready to spin its huge profit cloud AWS IT division, according to AWS CEO Adam Selipsky.

The executive said Bloomberg in an interview, he believes that “customers are very well served by making AWS part of Amazon.”

The announcement comes as the cloud computing division continues to be a key revenue source for e-commerce giant, accounting for 74% of the company’s $62 billion operating profit, to $24.9 billion.

What’s next for AWS?

Selipsky indicated that other acquisitions are likely on the horizon for AWS.

The executive said Bloomberg that AWS is open to purchases of all sizes, but will prefer smaller ones because it’s “more difficult to integrate large corporate mergers in the tech industry.”

Selipsky also expressed an optimistic outlook on expanding his operation’s already large share of the cloud computing market, telling the publication that he believes “AWS’s segment share should definitely be able to be maintained, even potentially increased”.

Amazon seems to be aiming significant expansion in the UKrecently announced that it is set to inject billions into the region as it seeks a long-term commitment to the UK.

The cloud computing giant said it would spend more than £1.8 billion over the next two years on UK-related expansion, more than double its existing total investment in the country.

The funding will be used to build and operate data centers in the UK, including an expansion of the AWS London region that was first launched in December 2016.

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Selipsky’s statements on the future of AWS come as the entire cloud computing industry is poised for growth, driven by ever-increasing enterprise demand for cloud services.

In 2023, Gartner predicts that end-user public cloud spending will reach nearly $600 billion. The analyst house predicted that global public cloud spending would grow 20.4% in 2022 to a total of $494.7 billion, up from $410.9 billion in 2021.

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