Amazon’s Panos Panay, Senior Vice President of Devices, Alexa, and Leo, spoke at TechCrunch Disrupt in October 2026 about the crucial role failure plays in innovation and product development. Drawing from his nearly two decades at Microsoft, Panay encouraged startup founders to embrace failure as an essential step toward success. He emphasized that encountering failure means pushing boundaries and that the key is to extract valuable lessons from those setbacks rather than avoiding or denying them.

Panay recounted his experience with the Surface RT, Microsoft’s first tablet, which was a significant failure resulting in close to a $1 billion write-down. Despite intense scrutiny and public criticism, Panay highlighted the importance of analyzing all decisions leading up to that failure, such as incomplete software and inventory mistakes. He stressed that failure often stems from earlier missteps, and the ability to confront these honestly is vital for learning and future success.

The Amazon executive urged founders to not just accept failure, but to maintain their original vision and keep moving forward with resilience. He pointed out that while failure can be painful, it does not signal the end of a product’s potential. For example, the Surface line eventually found its footing despite the rocky start of the Surface RT, demonstrating how perseverance and learning from past errors can lead to long-term achievements.

Panay also spoke about the importance of adaptability and making incremental changes based on lessons learned. He suggested that successful entrepreneurs pivot rather than completely overhaul their strategy, adjusting their approach slightly—often by about 30 degrees—to improve outcomes. Ultimately, Panay believes that recognizing when to adapt and when to persevere allows founders to innovate effectively without losing sight of their core goals.