The former Amazon VP who quit in solidarity with fired employees published a business case for why he thinks the massively profitable Amazon Web Services cloud business should be spun off (AMZN)

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Andy Jassy

Tim Bray, the former Amazon vice president and distinguished engineer who quit this year to protest Amazon’s firing of internal critics, wants the company to spin out its cloud business Amazon Web Services.
He’s getting the effort started by drafting a six-page memo, a common device Amazon uses internally to pitch new ideas, with the goal of ultimately getting it in front of AWS CEO Andy Jassy.
Bray calls spinning out AWS a “complete no-brainer,” and told Business Insider the main arguments for the spinout are helping Amazon address antitrust scrutiny, and eliminating the appearance AWS is competing with its own customers.
Are you a current or former Amazon Web Services employee? Contact this reporter via encrypted messaging app Signal (+1-425-344-8242) or email (astewart@businessinsider.com).
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Tim Bray, a top Amazon engineer who resigned last month in protest after the company fired internal critics, thinks Amazon should spin out its multibillion-dollar cloud business — and he’s getting the effort started in earnest by drafting one of Amazon’s famous six-page memos.

When it comes time to make major decisions, Amazon CEO Jeff Bezos asks managers to start off by writing a memo in this style, which usually includes a mock press release and a list of answers to what they expect to be frequently asked questions. In fact, AWS itself started with one of these six-page narratives.

Bray, like many others, argues Amazon should be broken up. Now, he’s making his case in a way that he believes Amazon will understand.

“The way Amazon makes decisions is by writing that kind of document,” Bray told Business Insider.

Amazon’s cloud platform continues to be the company’s main source of profits. In the most recent quarter, It reported $3 billion in operating profit, accounting for 77% of Amazon’s total operating profit. At the same time, AWS crossed the $10 billion quarterly revenue mark for the first time, growing 33% from last year.

Bray says an Amazon breakup is a ‘complete no-brainer’

Bray posted the six-pager on GitHub and is asking qualified, “smart people,” including Amazon employees, to edit the documents with the ultimate goal of getting it in front of AWS CEO Andy Jassy. Bray calls spinning out AWS a “complete no-brainer,” and told Business Insider the main arguments for the spinout are helping Amazon address antitrust scrunity, and eliminating the appearance AWS is competing with its own customers.

Bray – previously an Amazon vice president and one of a small number of employees who achieved the level of distinguished engineer at the company – gained widespread attention in May when he resigned and publicly criticized Amazon’s firing of whistleblowers who raised concerns about warehouse employees scared of contracting COVID-19.

Some in the industry have been calling on Amazon to spin out AWS for years.

First, the calls came from Wall Street, as many analysts and investors believed the growing cloud computing business would be worth more on its own than it is as a smaller piece of the Amazon empire. …read more

Source:: Business Insider

      

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