AWS chief govt Matt Garman isn’t shedding any sleep over discuss of the “SaaSpocalypse.” In reality, he’s so assured firms will proceed to purchase software-as-a-service within the age of AI that he’s pushing Amazon Internet Providers into the SaaS enterprise, and rolling out numerous merchandise aimed instantly at workplace employees and different professionals.
On Tuesday AWS unveiled Amazon Quick, a desktop software that lets customers work together with an AI chatbot to deal with private productiveness duties like creating work displays and arranging conferences. The corporate additionally introduced a trio of latest Join purposes to assist employees with duties in specialised fields comparable to hiring, healthcare, and provide chain administration.
For the world’s main cloud computing supplier, whose core enterprise entails serving to firms like Netflix, Adidas, and Pfizer run their web sites and operations on-line, promoting software program for particular person employees is sort of a change of tempo.
In an interview with Fortune on Tuesday, Garman described it as a “big enterprise alternative” for AWS and stated the appearance of agentic AI is what prompted the corporate to dive in.
“As we glance throughout purposes, we see that so many purposes are getting finished with AI and brokers. And we predict that there’s simply such a large change on the market that every thing goes to be remade,” Garman stated.
“I don’t suppose private productiveness has actually been remade for the final 30 years,” Garman stated in reference to the brand new Fast software. Fast might be obtainable to particular person customers even when they’re not AWS clients, with each a free tier and a premium tier.
“There are going to be tens of millions of profitable purposes that folks us; clearly the huge, overwhelming majority of them won’t be constructed by Amazon or AWS, however we predict there are a handful of them that we are able to construct that might be fairly profitable and that clients will like,” stated Garman.
AWS confirmed off the brand new merchandise at an occasion in San Francisco Tuesday by which the corporate additionally introduced particulars of a new partnership with OpenAI. For the primary time, AWS enterprise clients will be capable to combine OpenAI’s AI fashions instantly into their services. Till now, OpenAI’s GPT fashions have been solely obtainable through Microsoft’s cloud because of an unique partnership that Microsoft and OpenAI struck a number of years in the past. That agreement was revised this week, opening the door for AWS to incorporate the most recent GPT fashions and OpenAI’s Codex coding instrument for its cloud clients alongside different fashions comparable to Anthropic’s Claude and Meta’s Llama.
Whereas Garman wouldn’t present particulars of the monetary phrases of AWS’s new partnership with OpenAI, he famous that it features a income share. Earlier this 12 months, Amazon invested $50 billion in OpenAI, and the corporate has been working with OpenAI on coaching its fashions and in different areas.
The product bulletins come sooner or later earlier than Amazon is ready to report its first-quarter outcomes, which can happen after the shut of market on Wednesday. AWS is Amazon’s fastest-growing enterprise phase, with income rising 20% to $128.7 billion in 2025, and the corporate’s most worthwhile, incomes $45.6 billion in working revenue final 12 months.
Garman, who joined AWS as an intern in 2006, was appointed CEO of the enterprise in Could 2024. His management of Amazon’s cloud enterprise has coincided with the AI growth and the outstanding scramble amongst cloud suppliers, together with Microsoft, Google, and Oracle, to spend eye-popping sums constructing knowledge facilities and different AI infrastructure.
Amazon has stated it plans to put out $200 billion in capital expenditures this 12 months, up greater than 50% from its $131 billion in 2025 capex.
Requested if he might have imagined such large investments when he took the CEO reins two years in the past, Garman stated that AWS has all the time been in a capital-intensive line of enterprise.
“I don’t know if I might have precisely anticipated we’d be on the price we are actually, nevertheless it’s closely tied to how briskly the enterprise is rising,” he stated. “So the quicker the enterprise grows the extra capex we have to spend to ensure we’ve got capability for purchasers. However if you happen to have a look at the economics of AWS you’re going to put money into that each one day.”
Due to its expertise and experience working knowledge facilities effectively and at low value, Garman stated, AWS’s transfer to supply clients AI-powered software program like Fast and Join merchandise wouldn’t weigh on revenue margins.
“We get to run and profit from all of the efficiencies that we get from AWS,” Garman stated. “We expect many of those might have increased margins than simply the infrastructure, the place you add steady worth on high of these.”