Microsoft Fuels Rivalry With Amazon As It Hires AWS Veteran Charlie Bell

Microsoft Corp (NASDAQ: MSFT) has roped in rival Amazon.com Inc’s (NASDAQ: AMZN) top cloud executive Charlie Bell weeks after the industry veteran left his position at the e-commerce company. 

What Happened: Bell, who left Amazon recently, is now listed by Microsoft as a corporate vice president though his exact role at the company is not yet clear, as reported by The Wall Street Journal on Wednesday.

See Also: Amazon Cloud Head Charlie Bell Is Departing Amid AWS Management Makeover

An Amazon veteran, Bell joined the company in its early years in 1998. He was seen as a candidate to replace the current CEO Andy Jassy — who founded Amazon Web Services (AWS), an on-demand cloud computing subsidiary of Amazon. 

Bell’s exit last month follows a series of high-level moves at AWS, a key business for Amazon that accounts for half of the e-commerce giant's total operating profit.

Why It Matters: Amazon has upped its position in cloud computing ever since it set up AWS in 2006. The rivalry among tech giants fighting for market share in the cloud computing space has been growing as it is quickly turning out to be a key profit driver amid rising growth.

The Department of Defense had in July canceled a $10 billion cloud contract that was the subject of a legal battle between the two technology giants.

Price Action: Microsoft shares closed 0.20% lower at $320.01 on Wednesday.

See Also: Amazon Remains Dominant Player In Cloud, But It's Losing Grip To Rivals