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I will be interested to see how much of a hit AWWS/Azure/GCP takes during this downturn. Suddenly startups are not going to be spending millions per year on clo
by makestuff 4y ago
I will be interested to see how much of a hit AWWS/Azure/GCP takes during this downturn. Suddenly startups are not going to be spending millions per year on cloud stuff stuff that they don't really need (ex: massive redshift cluster for your "data collection"). Furthermore, a large number of startups will cease to exist.
I would guess large customers have account for a massive portion of cloud revenue; however, they also get much better pricing due to their scale. I would guess that the startups have to be where the gravy is since you are not getting a massive discount when you are small.
- ak_111 4y agoI would be very surprised how much of start-ups spending is driving AWS adoption (it's probably less than 5-10% of their revenue). In the UK alone a huge chunk of the public sector and FTSE100 corporate sector has migrated to AWS and Azure to the point where they are national security risk.
- makestuff 4y agoFair point, it would be interesting to see a breakout reflected in earnings reports, but I doubt that would ever happen.
- wongarsu 4y agoIn a sense AWS/Azure/GCP are doing startup investing, giving out tens of thousands of credits to basically any startup that asks for them, in the hope that most of them stay on their platform and some of those become huge (=big spenders). So if less startups are founded, startups fail earlier and startups build less-oversized architectures we might first see the effect in the beginning of the funnel, in terms of less free credits being spent. The hit to revenue would then take a couple years to fully materialize.