Amazon will not spin out AWS, but more acquisitions incoming

(Image credit: AWS)

Amazon is not ready to spin out its hugely profitable cloud computing division AWS, according to AWS CEO Adam Selipsky.

The executive told Bloomberg in an interview he believes that “customers are very well served by having AWS be a part of Amazon”.

The announcement comes as the cloud computing division continues to be a key money maker for ecommerce giant, representing 74% of the company’s operating profit of $62 billion, at $24.9 billion.

What’s next for AWS?

Selipsky indicated that more acquisitions are likely to be on the horizon for AWS.

The executive told Bloomberg that AWS is open to purchases of all sizes, but will prefer smaller ones as it is “more difficult to integrate big corporate mergers in the technology industry”.

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

Amazon seems to have its sights set on significant expansion within the UK, recently announcing it is set to pump billions into the region as it looks to make a long-term commitment in the UK.

The cloud computing giant said it will 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 go towards building and operating data centers in the UK, including an expansion of the AWS London Region that was first launched in December 2016.

Selipsky’s statements on AWS’s future come as the entire cloud computing industry is primed for growth, driven by ever-growing corporate demand for cloud services.

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

Will McCurdy has been writing about technology for over five years. He has a wide range of specialities including cybersecurity, fintech, cryptocurrencies, blockchain, cloud computing, payments, artificial intelligence, retail technology, and venture capital investment. He has previously written for AltFi, FStech, Retail Systems, and National Technology News and is an experienced podcast and webinar host, as well as an avid long-form feature writer.