Leaked memo shows Amazon Web Services is creating a new organization to combine its edge and hybrid cloud computing teams into one
Amid the most significant leadership changes in company history, Amazon Web Services has made a series of organizational changes to prioritize new areas of the business, according an internal memo viewed by Insider and sources with direct knowledge of the changes.
Amazon is creating a new organization called EC2 Edge, according to an internal memo Elastic Compute Cloud boss Dave Brown sent last week, combining hybrid cloud and edge computing products Outposts, AWS Local Zones, Wavelength, and Telco. To run the new org as a VP, Amazon hired Jan Hofmeyr from Comcast, where he was the chief network officer and one of the architects behind the company's X1 video and entertainment platform.
In the cloud industry, "edge" refers to the concept of keeping more computing power close to the final user — considered the edge of the network. Some in the industry believe that edge computing could be the next great frontier for the cloud market, powering more intelligent devices like self-driving cars or industrial robotics, where decisions can be made faster and on-the-fly without the need to communicate with platforms like AWS itself.
Indeed, one AWS insider said that dedicating a new VP to a business indicates that it's something Amazon sees as a potential billion-dollar business, or otherwise represents a significant strategic area for the company. Amazon declined to comment for this story.
The new organization will be "focused on providing EC2 Compute and Networking outside of our current regional footprint," Brown wrote in the email last week. "We're making strong progress in this area with the products that we have and I'm confident that the alignment here will allow us to move even faster. While it is still early days, I'm confident that EC2 Edge will be a very meaningful business for AWS in the coming years."
The unit also includes products like Outposts, which represent Amazon's first-ever product designed for the traditional data center, helping customers connect their legacy IT architecture up to the AWS cloud. Hybrid cloud is seen as tying in closely to the concept of edge computing, bringing more of the power of the cloud to the servers that customers already use.
Outposts General Manager Joshua Burgin, Local Zones boss Nathan Helmick, and Telco Director Kiran Edara, and EC2 senior principal software engineer Diwakar Gupta will now report to Hofmeyr. George Elissaios will also report to Hofmeyr and run a new consolidated product management organization for EC2 Edge products, including Outposts.