Top cloud providers Amazon, Microsoft and Google face ongoing spending cuts by clients

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Earnings reports from the leading cloud infrastructure companies showed that businesses continue to look for ways to trim their spending.

Amazon finance chief Brian Olsavsky was the bearer offor investors on Thursday, when he said that in April, AWS revenue growth had slumped by about five percentage points from the first-quarter growth rate of almost 16%. The company's stock price slid in response.

Amazon CEO Andy Jassy said "what we're seeing is enterprises continuing to be cautious in their spending in this uncertain time." At Google, cloud growth slowed to 28% from a year earlier in the first quarter from 32% in the prior period. The deceleration occurred even as Google's cloud segment"We saw some headwind from slower growth of consumption with customers really looking to optimize their costs given that macro climate," said Ruth Porat, Alphabet's finance chief, on Tuesday's earnings call."We are leaning into optimization," he said.

The companies remain optimistic that cloud will continue to be a strong market for tech, as businesses still have a long way to go before they'll be fully taking advantage of the benefits.And Hood noted that pretty soon the financial comparisons will be against numbers from the point last year when the market was softening.

"When you start to anniversary that, you do see that it gets a little bit easier in terms of the comps year-over-year," Hood said.

 

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