9/10/2023 0 Comments Amazon strike 2019![]() But Amazon seems to be playing catch-up to its competitors. Generative AI, which recently boomed in popularity followed by the release of Open AI’s ChatGPT, is another interest area for AWS. Amazon is also planning to build five new data centers in Oregon after it was awarded a controversial $1 billion tax break. Last month, the tech giant said it plans to spend more than $12 billion on cloud infrastructure in India by 2030, adding to multi-billion-dollar cloud investments it announced earlier this year in Malaysia and Australia. ![]() And with this in mind, Amazon is making big investments. Nag said many companies can’t afford to spend the amount of money it takes to run their own data centers, which would require expensive equipment and real estate. “Amazon’s seeing an artifact of that phenomenon affecting their growth rate,” Nag said.ĭespite the pullback, AWS is still expected to be a long-term revenue driver for Amazon. The firm predicts more than 90% of businesses will use multiple providers by 2026, a jump from 76% in 2020. Still, it’s easier for them to keep growing compared to Amazon, which can face more hurdles since it’s already a market leader and has to grow a larger customer base, said Sid Nag, vice president and cloud services analyst at the information-technology research and consulting firm Gartner.Īnother challenge for Amazon, Nag says, is that businesses are increasingly using multiple cloud services and moving away from single providers, a move that can boost tech options and prevent companies from being reliant on only one vendor. Google and Microsoft, which offer competing cloud businesses, posted strong showings in their respective businesses during the most recent quarter, but they’ve also seen some slowdown in recent months. The company told analysts in April that AWS’ growth rate for that month was 5% lower than the first quarter, souring the mood among investors who sent its share prices lower after hearing the news. Results for the second quarter aren’t expected to be released until late July, but there’s some indication the slowdown hasn’t reversed course. But Amazon executives have said the unit is facing short-term headwinds as companies look for ways to save money by reallocating their spending or cutting back on features they don’t need. Amazon said it fixed the issue within four hours.ĪWS is the market leader in the cloud arena, and its customers include some of the world’s biggest businesses and organizations, such as Netflix, Coca-Cola and government agencies. The conference, though, was overshadowed on Tuesday afternoon when an AWS outage hampered the ability of many customers to operate their sites. The meeting is one of several big events Amazon hosts annually to tout its cloud offerings to its clients or other companies that might be interested in storing their data on its vast network of servers around the world. It is under those circumstances that AWS held its two-day security-focused cloud conference Tuesday in Anaheim, California. The tech giant’s first quarter earnings report showed its cloud unit generated $21.4 billion and was growing at 16% in the first three months of this year - much slower than the 37% growth rate a year prior. And many of them are being more cautious about their cloud costs, leading to a slowdown in one of Amazon’s profitable businesses. Now even the lucrative cloud services business is feeling pressure.Ĭompanies are trimming their expenses amid concerns about high inflation and fears that a recession might be around the corner. ![]() But even when those lockdowns eventually lifted and Amazon’s sales slowed as people returned to stores, the company could still count on its massive cash cow: Amazon Web Services. NEW YORK (AP) - When the pandemic hit three years ago, Amazon was one of the few businesses that thrived.Ĭustomers flocked to the online commerce site amid global lockdowns.
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