When the pandemic hit three years ago, Amazon was one of the few businesses that thrived.
Customers flocked to the online commerce site amid global lockdowns. But even when those lockdowns eventually lifted and Amazon’s sales slowed as people returned to stores, the company could still count on its massive cash cow: Amazon Web Services.
Now even the lucrative cloud services business is feeling pressure.
Companies are trimming their expenses amid concerns about high inflation and fears that a recession might be around the corner. And many of them are being more cautious about their cloud costs, leading to a slowdown in one of Amazon’s profitable businesses. The tech giant’s first quarter earnings report showed its cloud unit generated $21.4 billion and was growing at 16% in the first three months of this year — much slower than the 37% growth rate a year prior.
Another challenge for Amazon, Nag says, is that businesses are increasingly using multiple cloud services and moving away from single providers, a move that can boost tech options and prevent companies from being reliant on only one vendor. The firm predicts more than 90% of businesses will use multiple providers by 2026, a jump from 76% in 2020.
Posted from:https://apnews.com/article/amazon-aws-slowdown-cloud-services-813a9cd0af33ccee6cfcd748180274b7
AWS and Microsoft are pausing or slowing down the development of data centers, according to a Wells Fargo research note shared with PYMNTS.
Posted from:https://www.pymnts.com/technology/2025/aws-microsoft-slow-down-data-center-deployments/
For years, Amazon Web Services (AWS) was the undisputed king of cloud computing. It wasn’t just Amazon’s cash cow — it was the cloud. But something’s changed. If you’ve been reading between the lines — edge computing investments, Nitro Systems, hybrid partnerships — Amazon seems to be slowly retreating from its full-throttle cloud-first narrative.
Posted from: https://techpreneurr.medium.com/why-amazon-is-quietly-abandoning-the-cloud-11a6691d5967