By Hiring CIOs AWS Strengthens Its Cloud Enterprise Space

by CXOtoday News Desk    Oct 31, 2014

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A CIO would be the best person to understand and feel the pain point of another CIO or the IT department. Keeping this view in mind, tech major Amazon Inc is reportedly hiring Chief Information Officers (CIOs) to pitch prospective customers on the benefits of its cloud. The move, according to some, will help Amazon web Services (AWS) get closer to the enterprise customers – an area it could not afford to miss.

The company has already hired former Dow Jones CIO Stephen Orban, who has taken up the mantle of Amazon’s new Enterprise Strategy chief. Orban will work with enterprises to aid in managing their shift to the cloud. Orban’s LinkedIn profile suggests that he joined Amazon in September as the new head of enterprise strategy, prior to which he had held several high-profile executive positions, most notably as CIO of Dow Jones.

According to some, it is after three long years that Amazon added an enterprise focus to its growing portfolio of cloud services. Previously, the company was focused mostly on SMBs.

“Large, established, enterprises may find that changes are required to make the transition to the cloud possible. There is a lot that goes into a disruption of this magnitude. Security, financial management, cost and policy governance, automation, DevOps, and corporate politics are just a few of topics that need to be considered. Many of these disciplines are well established within the enterprise. They require careful change and expectation management,” Orban writes in his blog on cloud computing, adding that every organization will have to adopt cloud though at different levels.

While the cloud computing market is very lucrative with Forrester estimating the public cloud market likely to be worth $72 billion in 2014, growing to $191 billion by 2020, there is tremendous competition. Not that most companies are seeing a big success by adding cloud to their portfolio. Enterprises who are becoming more comfortable with the concept of cloud, are also beginning to move more of their apps and data to clouds outside the data center. But they would obviously want to get the ‘extra bit’ which others so not offer.

While IBM, Oracle, HP, Googe and a constellation of niche vendors are trying to gain traction for their cloud offerings, Amazon is already in a better position, even though it lost some of its market share last quarter. The problem all these vendors have is attracting business Those who can add value in this space and create a wow factor can sell better – something AWS has always been striving to so.

As an analyst told Forbes, the recent move signals Amazon’s recognition that it needs to make peace with CIOs whose IT departments to target enterprise, as well as those who require guidance shifting to the cloud.