Global tech companies have been hit by reducing customer spending on cloud services and datacenters. These companies include Microsoft, Amazon and Google. This signals the beginning of slowdown troubles for these companies. Cloud services have been a growth driver for some big tech companies over the years. The demand for these services had increased during the pandemic.
The growth of Amazon Web Services, the cloud services arm of Amazon, which is one of the largest e-commerce companies, has slowed in the last four quarters. Its net sales grew at about 28 per cent in the July-September quarter, up from 39 per cent in the same period last year. This is the lowest growth in almost two years. Amazon’s stock was down 12 percent on Thursday after forecasting lower sales growth during the holiday season. global software company Microsoft The revenue of Azure, the cloud services division of the U.S., had been growing steadily for a few years, but declined to around 35 percent during July-September. The growth of this division was around 50 per cent in the same period last year.
The cloud services business of Alphabet, the US company that runs Internet search engine Google, grew 38 percent in the last quarter. However, this is lower than the increase of 45 per cent in the corresponding quarter of the previous year. Google is also facing difficulties due to violating laws in some countries. Earlier this month, Google was fined around Rs 1,338 crore by the CCI for using anti-competition methods involving Android in India. company A separate investigation is going on against the company regarding the way it does business in the country’s smart TV market as well. Earlier this week, Google was fined Rs 936 crore by the CCI after being found guilty in another case. The company has been found guilty of abusing its position in the market to promote its payments app and in-app payment system.
Intel, which makes chips for a number of data center customers, including AWS, reported that its revenue from this business was down 27 percent in the third quarter and profits were almost wiped out. The company is suffering due to reduced demand from China’s enterprise customers.
(This news has not been edited by digitnews team. It has been published directly from Syndicate feed.)