Now that AWS, Azure, GCP earnings are slowing down across the board, let’s look at what this could mean in the near-term and long-term.
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SHOW NOTES:
- AWS earnings - $21.4B, up 20% (down from 27% QoQ)
- Microsoft Azure earnings - $21.5B, up 31% (down from 35% QoQ)
- Google Cloud earnings - $7.32B, up 32% (down from 38% QoQ)
- Google claims that Azure is losing money
- Cloud leaders AWS, Azure, Google show the market is cooling down
- 2022 CAPEX spend by the cloud providers
- Cloud players being cautious in 2023
THE GROWTH OF CLOUD PROVIDERS IS BEGINNING TO SLOW DOWN
- The cloud providers are still growing at a high rate
- But the rate of grow, and CAPEX investment is slowing down
- Is this the new normal?
WHAT’S CAUSING THE SLOW DOWN?
- Increased interest rates, so slower overall spending across tech
- Cloud cost optimization tools and company-wide programs
- Enterprise companies managing to post-COVID “new normals”
- SaaS companies cutting back, especially VC-funded companies
- Lots of tech layoffs
- Concern about Google (and Azure?) being profitable?
- Will the new AI wars disrupt the focus of the cloud companies?
- Will we see services cut back by the cloud providers?
- Companies now have an opportunity to renegotiate costs?
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