Cloud computing served as Big Tech’s cash cow for a while. Companies throughout the economy became more dependent on flexible data storage and processing power as the digital economy expanded. This gave tech businesses the chance to rent out such capacity. The epidemic accelerated the trend, bringing Alphabet, Amazon, and Microsoft years of good news.
Even while they are not growing as swiftly as they previously did, their cloud computing companies are nonetheless expanding. Each of the three market leaders’ quarterly growth rates decreased by at least 10 percentage points from the prior nine months in the fourth quarter. According to Rikin Shah, founder and CEO of Slower.ai, a company that aids businesses in moving to the cloud, this is mainly due to the unstable economy, which means “every dollar is being scrutinised” at current clients. The majority of cloud infrastructure is dependent on use, thus clients can reduce their costs by utilising the service less frequently. On a Feb. 2 earnings call, Amazon.com Inc. Chief Financial Officer Brian Olsavsky mentioned two slowing industries that were holding back cloud growth: mortgage lending and cryptocurrency trading.
