AWS is set to reorganize its global sales teams to improve its overall standing on the global cloud market. By reorganizing, the largest cloud player wants to be more competitive with competitors such as Google and Microsoft that are outpacing its growth.
The expected reorganization will soon consolidate sales teams that have “conflicting sales strategies” within the company. These are the findings from The Information. Affected employees will soon be notified. In total, as many as 60,000 employees worldwide are affected.
In addition, AWS has plans to change how technical staff are assigned to support customers. This move comes after several customers expressed dissatisfaction with the current quality level of support from the hyperscaler’s technical staff.
Disappointing growth rates
A major reason for the reorganization of sales is that AWS is experiencing disappointing growth figures. The tech giant is also said to have failed to meet internal targets for such growth, especially at a time when AWS is increasingly looking to focus on AI.
Market segments in which AWS’ sales are disappointing include start-ups and smaller companies. According to Business Insider, these market segments are definitely going to miss their growth targets for this year.
Also read: AWS forgets to re:Invent, lashes out at competition
Furthermore, despite the tech giant being the biggest player in the public cloud space, it appears that AWS cannot keep up with the growth realized by its major competitors Google and Microsoft. For example, the AWS’ cloud segment grew by 12 percent in the third fiscal quarter of this year, while Google and Microsoft achieved growth in this area of 22 percent and 29 percent, respectively.
Another problem AWS is currently facing is a drain on executive managers. There is also reportedly a high outflow at lower management levels right now, mainly due to burnout symptoms.
Not the first reorganization this year
The upcoming reorganization of the sales (but also marketing) teams is not the first this year. Earlier, mainly overlapping functions were eliminated, and regional managers were given more control over decisions. This, as AWS put it, to better align with customer needs.
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