The Uptime Institute has published a report showing slowing growth in the major cloud providers, suggesting that the era of hyper-expansion is drawing to a close. AWS reported a quarter-on-quarter revenue increase of 27.5 percent for Q3 2022, this is down from 33 percent in Q2.
Microsoft’s Azure could see revenue growth decline in their next quarter, following disappointing 35 percent growth in the three months to September 2022. Google’s cloud growth was up to nearly 38 percent in Q3 of 2022, from 30 percent in Q1, this is down from a high of 58 percent in Q1 of 2021.
The Uptime Institute attributes the slowdown to economic realities, stating that cloud buyers are seeing higher energy costs together with other kinds of inflation, making them cautious about spending money.
In an update this week Gartner forecasts a very healthy 9.3% growth in software spending, including cloud, through 2023, but businesses are beginning to understand that cloud is not always cheaper than in-house or third-party datacenters for all workloads. Read more also in this article of The Register.