Cloud computing is in its beginning stages and will only continue to grow, Amazon Web Services CEO Adam Selipsky told CNBC’s Jim Cramer on Tuesday.
“It’s possible that AWS could become the largest business at Amazon. Now, Amazon has other large and great businesses, and so it could take a while for us to get there,” Selipsky said in an interview on “Mad Money.”
“Essentially, IT is going to move to the cloud. And it’s going to take a while. You’ve seen maybe only, call it 10% of IT today move. So it’s still day 1. It’s still early. … Most of it’s still yet to come,” he added.
The cloud business’ revenue in the first quarter beat the consensus among analysts polled by StreetAccount, accounting for roughly 16% of Amazon’s total revenue. AWS grew faster from the same period a year before than analysts expected.
AWS was launched in 2006, before competitors Microsoft‘s Azure or Alphabet’s Google Cloud Platform, and has notable collaborations with Goldman Sachs, Stellantis and Best Buy.
Selipsky said that despite the heightened competition in the industry and the threat of a recession, AWS is continuing to do well.
“Demand continues to be strong, with lots of new customers signing up and existing customers expanding,” he said.
Disclosure: Cramer’s Charitable Trust owns shares of Alphabet, Amazon and Microsoft.
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