Amazon Web Services (AWS), the primary revenue driver for Amazon, is set to undergo a leadership change - New York (CNN)

Announced on Tuesday, Adam Selipsky, the current CEO of AWS, will step down from his position next month. Selipsky, who joined AWS in 2005, has been at the helm since 2021, following the elevation of Andy Jassy to lead Amazon as a whole.

Taking over as the new AWS CEO on June 3 is Matt Garman, presently serving as the vice president of sales, marketing, and global services.

The leadership transition within AWS holds significant implications for Amazon, given that the cloud computing division contributes almost two-thirds of the company's overall profits. With a staggering annual revenue surpassing $90 billion, AWS stands as a substantial entity in its own right, rivaling standalone companies.

Furthermore, AWS finds itself at a critical juncture amidst the burgeoning artificial intelligence landscape. As it introduces new tools and expands its capabilities, AWS aims to position itself as the preferred computing provider for the evolving technology landscape. However, it faces stiff competition from industry heavyweights like Google Cloud and Microsoft Azure.

Since Adam Selipsky assumed leadership at Amazon Web Services (AWS), the division has experienced a remarkable sales growth of over 85%. However, the announcement of Selipsky's departure led to a slight dip of more than 1% in Amazon's shares on Tuesday.

Andy Jassy, in an email to the staff on Tuesday, revealed that Selipsky's tenure was always intended to be temporary. Jassy explained that upon his transition from AWS to Amazon CEO, there were already capable leaders within AWS who could potentially lead the entire business in the long run. However, they would benefit from further experience and mentorship under a seasoned CEO like himself.

In reflecting on Adam Selipsky's appointment back in 2021, Andy Jassy emphasized that they had discussed the role with the understanding that it would likely be for a limited duration. They agreed that during this period, one of Selipsky's key focuses would be grooming the next generation of leadership within AWS. Jassy commended Selipsky for adeptly steering the business while nurturing his leadership team.

Expressing gratitude for the support of customers, partners, and colleagues, Selipsky conveyed his confidence in Matt Garman and the capable leadership team in a post on X Tuesday.

Even prior to Selipsky's tenure, analysts had identified Garman as one of the top contenders for the AWS CEO position.

Garman's journey at Amazon began as an intern in 2005, and he transitioned to a full-time role in 2006, serving as one of the pioneering AWS product managers. Over the years, he ascended to the role of general manager for AWS Compute services before assuming leadership responsibilities on the sales front.