For cloud giants, usage soars but tech investment delays hobble revenue growth

  • 📰 Reuters
  • ⏱ Reading Time:
  • 68 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

As lockdown orders force billions of people to work, learn and play from home during the novel coronavirus outbreak, usage has surged for the cloud computing services that power video conferencing, streaming television and online games.

In particular, peak daily usage for Google’s Meet videoconferencing tool has shot up 30-fold since January while the number of daily users for Microsoft’s Teams chat system has more than doubled to 75 million since early March.

For instance, Microsoft said it put limits on how much cloud computing new customers could consume because of equipment shortages due to lockdowns. “Cloud investment in the worst-affected vertical segments, such as hospitality, aviation, construction, tourism and manufacturing, is being scaled down or delayed,” Canalys said in a report on Thursday. “This has offset some of the short-term growth enjoyed during the quarter.”

Market researcher IDC last week downgraded its forecast for global IT spending in 2020 to a 2.7% decline compared with a previous estimate of a 3.6% rise because of the pandemic.Microsoft Azure, which is No. 2 in cloud revenue after Amazon Web Services, saw its sales growth rate slow the most, at 59% in the first three months of the year from 62% in the prior quarter, company data showed.

As much as a fifth of Microsoft’s cloud revenue could face volatility in the coming quarter because of those delays, the company said. John Dinsdale, a chief analyst at Synergy Research Group, said though some buyers are delaying, their plans to adopt more cloud services have not changed.Amazon, which saw Amazon Web Services revenue growth drop to 33% in the first quarter from 34% a quarter earlier, pointed to an increase in future spending commitments from customers as evidence its business remains healthy.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

TodosPorBolsonaro

Why an e-commerce company has the biggest cloud storage system surpassing oracle?

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Apple says Apple Care and ads will take the biggest hits this coming quarter - Business InsiderThe tech giant reported revenue of $58.3 billion for its fiscal second quarter of 2020. My iPhone litterally just died. I can hep them global if they hire me as brand ambassador. .. Ya Apple
Source: BusinessInsider - 🏆 729. / 51 Read more »

Boeing jumps 6% after announcing dismal earnings and employee layoffs - Business InsiderThe airplane maker soared after its quarterly loss was narrower than expected, while revenue fell short. The government is going to put some money in their shares. Point. Everything that goes down, goes up.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Amazon Web Services generated over $10 billion in quarterly revenue - Business InsiderAmazon Web Services saw a slowdown in quarterly growth, although it still has a larger cloud market share than rivals Microsoft and Google Cloud.
Source: BusinessInsider - 🏆 729. / 51 Read more »