Sunday 29 November 2020

Professor Scott Galloway: Amazon May Spin Off AWS

WebProNews
Professor Scott Galloway: Amazon May Spin Off AWS

Amid increased antitrust scrutiny, at least one expert is predicting Jeff Bezos and Amazon may spin off AWS.

AWS is currently the dominant cloud provider, with 31% of the cloud computing market. At the same time, Amazon is a major force in the e-commerce market, and several of its acquisitions have helped it became a significant player in other industries. Whole Foods, Ring and Twitch are just a few of the acquisitions that have made Amazon a powerhouse far beyond its original form.

The company’s expansion into other markets has drawn the attention of the government, as it looks closely at Big Tech in general. While the current scrutiny has come under a Republican administration, Democrats traditionally come down even harder on big business, raising the stakes with an incoming Biden/Harris administration.

Scott Galloway, Professor of Marketing, NYU Stern School of Business, spoke with CNN’s Michael Smerconish about the antitrust challenges facing tech companies.

“It’s a real concern for all of them. There’s already a case against Google, which I think the Biden/Harris administration will pick up. The shadow of the Biden/Harris administration has already resulted in more change at Facebook and Twitter than we’ve seen in a long time. [They’ve] made huge efforts to try and stop the spread of misinformation around the COVID-19. And I would argue that it’s tantamount to teens who have held a great party and their parents are coming home, and they’re trying to clean up their act.”

Professor Galloway then spoke specifically about the lengths Amazon may go to avoid antitrust issues.

“As it relates to Amazon, it will be Google, then likely Facebook for antitrust action. I do think it will happen to Amazon, but not until those two are done. I personally think Jeff Bezos, who’s the smartest businessperson in the world, will likely spin AWS prophylactically. And my prediction, Michael, is that in the year 2025, the most valuable company in the world will be a recently spun, independent AWS. The largest, most profitable cloud company in the world would be a stock that everyone would own.”

Professor Scott Galloway: Amazon May Spin Off AWS
Matt Milano



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