Amazon(US:AMZN) Hua Er Jie Jian Wen·2025-10-25 08:50Core Insights - Amazon's cloud computing business, AWS, is facing unprecedented challenges due to internal bureaucracy, slow responses in the AI sector, and strong competition from rivals like Google and Microsoft [1][2][3] Group 1: AWS's Current Challenges - AWS's market dominance is under severe threat as it struggles with internal bureaucratic issues and a lack of agility in decision-making [4][5] - The recent outage of AWS, one of the most severe in its history, has raised concerns about its operational stability [1][2] - AWS's slow start in the AI race has allowed competitors to gain significant ground, with Google recently deepening its partnership with AI startup Anthropic [3][8] Group 2: Competitive Landscape - Microsoft’s cloud business is now outpacing Amazon in order backlog growth, while Oracle has secured multi-billion dollar contracts for AI development services [5][6] - Google has become a more formidable competitor, especially in attracting AI startups, which poses a direct threat to AWS's market share [5][6] - Existing AWS clients are exploring alternatives due to dissatisfaction with AWS's AI offerings, indicating a shift in loyalty among key customers [6][7] Group 3: Leadership and Strategic Changes - AWS has appointed Matt Garman as the new CEO, who is expected to drive a more aggressive strategy to reclaim market leadership [7] - The company is focusing on delivering promised products and has halted the development of over thirty services to prioritize AI tool development [7][8] - AWS is banking on its AI services like Bedrock and its proprietary Trainium2 chips, which are touted to be cost-effective compared to competitors [7][8]