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Is the Cloud Recession-Proof?

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Re: Is the Cloud Recession-Proof?

#21

Post by grey-area »

jarym wrote: post #10
pram wrote: post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

A $10m/month reduction is quite significant. Question is, was your company spending $10m/month extra unnecessarily or have they had to cut down and go without important things in getting this kind of reduction?

A reduction in customer numbers means a reduction in the resources required.

Many businesses associated with outdoor activities, sports, travel etc etc will be seeing less traffic at the moment. Many business are pretty much closed. This will then severely impact other businesses which sell to those businesses, and so on, all the way up the chain to advertising and cloud providers.

Re: Is the Cloud Recession-Proof?

#22

Post by grey-area »

nojito wrote: post #14

Yup. The way cloud sales works makes it seem almost impossible to justify restructuring your infrastructure to your management. It's a genius sales strategy.

It's pretty easy to cut down clusters to the minimum number of nodes for them to function (say cutting 10 servers to 2), or downgrade the size of instances to compensate for lower traffic. There's no need to restructure infrastructure in most cases, if anything using a cloud provider makes this easier.

Re: Is the Cloud Recession-Proof?

#23

Post by itwy »

cunac wrote: post #11
pram wrote: post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

having a hard time to see how you scale down 120 mil a year. How much you spend yearly now

The guy is lying, obviously.

Re: Is the Cloud Recession-Proof?

#25

Post by jhwang5 »

mjevans wrote: post #7
mbalex99 wrote: post #4

The cloud will not be recession proof but when everything falls it’ll be less likely to fall as much as other industries or sectors.

My own opinion is that "The Cloud" will fail only if things get _really_ bad. Many who are currently laid off may be getting to that point; but for the cloud to actually fail it has to be more than just some customers. It's got to be businesses and power users. Given how power users are likely to be "Essential", and how businesses might scale back but otherwise avoid major changes, those demographics will only pull o…

You will get that answer in Amazon, Google, and Microsoft's Q2 earnings. I can't wait myself.

Re: Is the Cloud Recession-Proof?

#26

Post by code_duck »

EmielMols wrote: post #13
pram wrote: post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

For those wondering as well, at 10b quarterly revenue, 10m monthly is ~.3% of all AWS revenue.

That sounds like a lot to me for just one customer. But in the absence of much more data about AWS customers and revenue, it's hard to draw any meaningful conclusions.

Re: Is the Cloud Recession-Proof?

#27

Post by syshum »

pram wrote: post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

"Cloud Scale" always promotes that you can scale up easily, but that also means you can scale down easily

Re: Is the Cloud Recession-Proof?

#28

Post by jjeaff »

MattGaiser wrote: post #5

The cloud is this recession proof because this recession is also a people retreat to their homes recession.

Maybe. But that's assuming people will use more cloud services at home than they and their companies do when working at full capacity.

I was thinking that we were going to start having blackouts due to everyone being at home during the day running their A/C, until I realized that countless businesses are now not running their A/C since no one is in the office/restaurant/mall.

Re: Is the Cloud Recession-Proof?

#29

Post by Hokusai »

Right now a more important question is how fast is the Cloud growing? Will it outgrowth the recession?

The Cloud is still growing as many businesses are still moving towards it. If the natural growth of the Cloud is bigger than how much the economy shrinks then the growth will still be positive or flat.

I work for a tech company in this situation. It has grown a lot the past years and was expected a lot of growth in 2020. Now the expectations are more close to a flat growth with heavy losses in some quarters and growth in others. It is a similar case to the Cannabis industry. It may shrink from the reduction in economy, but still grow to the end of the year as it is just starting its growth path.

Re: Is the Cloud Recession-Proof?

#30

Post by jjeaff »

tanilama wrote: post #9

I would say probably. It is like electricity or water. Yes unnecessary spending will be curbed, but surge in other fronts from the system will compensate that. Overall, it is hard to imagine that Cloud business will not be hurt, but it will have some resilience to battle it.

For the big 3 cloud providers, even if their cloud did contract significantly, they are all poised to earn more on the other parts of their business to make up for it.
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