My outlook as it relates to AWS, Azure, Google Cloud Platform (GCP) and Oracle’s cloud server business is unchanged as compared to the article we wrote back in January (HERE).
- Fewer startups will be built upon remote server platforms (AWS and Azure being numbers 1 and 2) as most startups are cutting heads or worse yet, going out of business. Similarly, fewer startups are being funded today. Therefore, AWS, Azure, GCP and Oracle usage will be down versus a year ago.
- Many medium and large-sized corporate customers are cutting heads. Therefore, there are fewer users to drive AWS, Azure, GCP and ORCL usage (i.e. revenue).
- Some medium and large-sized customers will push forward and migrate owned-servers to some combination of AWS, Azure, GCP and Oracle. However, we do not believe this activity will offset the drop in usage as it relates to our two previous points.