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Amazon in 2Q17: Bookstores, Logistics, and Whole Foods

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Part 6
Amazon in 2Q17: Bookstores, Logistics, and Whole Foods PART 6 OF 20

Making Sense of Amazon’s Cloud Hiring Tactics

Amazon filling sales positions more rapidly

Amazon (AMZN) is filling sales jobs in its cloud computing and advertising units at a more rapid pace than it is hiring for other departments. The company disclosed these hiring details during its 2Q17 earnings call.

Amazon’s cloud unit, Amazon Web Services (or AWS), controls more than a third of the global cloud computing market. According to Synergy Research Group, AWS is the world’s largest cloud vendor. In that position, AWS is also vulnerable to growing competition. Leaving advertising out, a lot can be learned from Amazon’s increased sales workforce hiring for AWS.

Making Sense of Amazon’s Cloud Hiring Tactics

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Fending off rising competition

The aggressive sales force hiring for AWS may imply that Amazon is stepping up its efforts to fend off competition from cloud rivals Microsoft (MSFT), Oracle (ORCL), IBM (IBM), and Alphabet’s (GOOGL) Google.

The rapid pace of sales force hiring for AWS could also imply that Amazon is winning more big-ticket cloud clients and is hiring more salespeople to provide dedicated support to large corporate accounts.

Cloud providers are in a heated competition to woo enterprise customers as more companies move their workloads to the cloud.

$383.4 billion up for grabs

In the cloud computing industry, Amazon is fighting for control of an ~$209 billion economy. According to research firm Gartner, the worldwide public cloud computing market surpassed $209.2 billion in 2016 and could grow to $383.4 billion by 2020. The chart above illustrates this projected growth.

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