Before investing in equinix keep in mind it is an reit and operates under different rules (I think; someone should double check me).
Is the Cloud Recession-Proof?
81–90 of 116 posts
Re: Is the Cloud Recession-Proof?
#82The cloud is this recession proof because this recession is also a people retreat to their homes recession.
In what recession do people not retreat to their homes? Recessions are usually associated with higher levels of unemployment, presumably with that extra time spent at the home (as opposed to going out, and spending money).
They weren't mandated to stay at home by their governors before. It's quite different.
Re: Is the Cloud Recession-Proof?
#83The cloud is the opposite of recession proof. Why do you use the cloud in the first place? Flexibility, scale, ease of operations. What are you gonna do with your servers during a recession, put them on Craigslist? Are you gonna put your entire datacenter on there too? The same mechanic that makes the cloud attractive in the first place is what will bring the hammer down in a serious recession. Companies will turn ev…
There are a whole love of reservations on instances and lock-in to databases, serverless, networking infrastructure, etc. Its hard to leave.
Nobody mentioned leaving. It's about the ease of scaling down operations and spending less money, compared to an on-prem alternative.
Re: Is the Cloud Recession-Proof?
#84Earlier quoted context omitted.
Microsoft is heavily invested in software that helps with remote work like office 360 and Microsoft teams. Google is getting more traffic than ever I'm sure with people stuck at home and looking to buy or do things online. All of which are advertising their services in Google.
Google doesn’t make money from increased traffic, they make money in ad spend. It doesn’t matter if more people are staying at home if the bottom falls out on the ad buyers.
Somewhat compensated by other ad venues moving online. I don't think all the signs and billboards in Times Square will be as popular as they were before.
Re: Is the Cloud Recession-Proof?
#85The cloud is the opposite of recession proof. Why do you use the cloud in the first place? Flexibility, scale, ease of operations. What are you gonna do with your servers during a recession, put them on Craigslist? Are you gonna put your entire datacenter on there too? The same mechanic that makes the cloud attractive in the first place is what will bring the hammer down in a serious recession. Companies will turn ev…
Every industry is going to face / implement a degree of cost cutting, that's unavoidable. However the control and scalability of cloud within an ethos of cost cutting is attractive for this exact reason. A business can enter that market and know they have a very flexible amount of control over their expenditure. You need to keep in mind its only a minatory of companies who have migrated to cloud, the majority have plans, but had never made the crossover as yet. With necessity being the mother of all invention, this adoption will only accelerate now
Re: Is the Cloud Recession-Proof?
#86Is anything 'recession proof', 'crash proof'?
I dislike articles like this because nothing is "proof/immune" if the hurt/pain is strong enough.
I 100% believe that many cloud companies are recession resistant, but it really depends what market forces that recession is driven by.
If this was 2008 crash again, we'd say all real estate cloud companies were not recession proof.
Re: Is the Cloud Recession-Proof?
#87Earlier quoted context omitted.
In what recession do people not retreat to their homes? Recessions are usually associated with higher levels of unemployment, presumably with that extra time spent at the home (as opposed to going out, and spending money).
They weren't mandated to stay at home by their governors before. It's quite different.
The lockdown will in now way outlast or run any where near as long as the recessions we have coming ahead.
Re: Is the Cloud Recession-Proof?
#88Earlier quoted context omitted.
Can you explain how that works please?
The short version is lockin. Unless you get very careful ops engineers making it truly cloud-agnostic, you can't even move from AWS to GCP without a huge amount of overhead. I'm a contractor and several of the companies I've worked with recently have almost hard-coded their services to expect certain things available to them on GCP or AWS that aren't as easily available on the other. You can argue that they should us…
This is why we choose to sit everything on top of OpenShift, we get Red Hat support 24/7 to run it and if we needed to migrate to a different provider its far less painful as OpenShift abtracts the cloud providers API's away from us. The only real changes we need to make our admin based. Technical changes are very minimal.
Re: Is the Cloud Recession-Proof?
#89The cloud appears to be a short term gain to achieve operational readiness and efficiency, but it becomes a long term loss in terms of ongoing operational costs.
> it becomes a long term loss in terms of ongoing operational costs.
Based on what, that sounds like something you have just pulled out of the air.
Re: Is the Cloud Recession-Proof?
#90Earlier quoted context omitted.
In what recession do people not retreat to their homes? Recessions are usually associated with higher levels of unemployment, presumably with that extra time spent at the home (as opposed to going out, and spending money).
They weren't mandated to stay at home by their governors before. It's quite different.
Stay at home is a short term change in the behavior. But people losing their jobs and changing their spending habits will have long term effects as well.