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Experts say this is the nightmare scenario for Amazon Web Services

Experts say this is the nightmare scenario for Amazon Web Services

At a moment of leadership transition, experts outlined what could be a nightmare scenario for Amazon Web Services.
Reuters




AWS isn't showing signs of trouble, but experts said its nightmare scenario is always possible.




As Amazon competes in more industries, more companies in those industries may shun AWS.




AWS's reputation as a place to work is also key if it hopes to win the war for talent.




See more stories on Insider's business page.


Cloud-computing giant Amazon Web Services exited the pandemic even stronger than before as companies rushed to adopt its technologies and prepare for a virtual future. Indeed, Amazon's cloud unit is at the top of its game right now: It's a $54 billion-a-year business and far ahead of its primary rival, Microsoft.But it's also in a moment of transition. Adam Selipsky, the new CEO, officially took over at the beginning of the month, replacing former CEO Andy Jassy, who now leads all of Amazon. And despite its towering strength, AWS does have weak spots.The growing reach of Amazon into sectors such as healthcare and pharmacy presents what could be a nightmare scenario for AWS, which still generates the bulk of the overall company's profits.
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