Is There a Competitive Advantage for Cloud Providers?

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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