Retail giant Amazon has reported a 9% rise in profits year-on-year. However, the company’s stock value fell after it reported a slowdown in its cloud services. CFO Brian Olsavsky’s announcement that cloud customers were reducing their spending due to the current economic conditions has caused concern among investors. Olsavsky also said that global inflation was falling and consumer confidence was rising.
Cloud Market Remains Strong While Amazon Stocks Drop
According to James Campanini, CEO of technology consultancy VeUP, the cloud market remains fundamentally strong and serves as a backbone for business operations and growth. However, he highlighted the need for organisations to optimise their cloud spend in anticipation of further challenges ahead.
Campanini added that many organisations lack the resources and expertise to optimise their spending in this area. To address this, businesses need to work with dedicated cloud partners who can help them reorient, access a wider range of services and operate more efficiently to get the most out of the cloud and their cloud provider.
Despite the slowdown in Amazon Web Services (AWS) revenue growth in the first quarter of the year, CEO Andy Jassy sees an opportunity for growth and development in Amazon’s AI tools and cloud services. AWS is currently in a race with Google and Microsoft to develop a competitive AI suite.
Cost Optimisation as an Essential Step
As organisations look to reduce overheads in anticipation of future challenges, cost optimisation has become an essential step. Many organisations see cost optimisation as an afterthought and do not include it in the design phase. To address this, organisations need to work with dedicated cloud partners who can enable them to re-align, access a wider range of services and operate more efficiently to get the most out of the cloud and their cloud provider.
In conclusion, as we reported on Zatrun.com, the cloud market remains fundamentally strong despite economic uncertainty, but businesses need to optimise their cloud spend in anticipation of further challenges ahead. Cloud partners can help businesses to realign, access a wider range of services and operate more efficiently to get the most out of the cloud and their cloud provider. Meanwhile, Amazon sees opportunities for growth and development in its AI tools and cloud services, despite a slowdown in AWS revenue growth.