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

▤ Summary

The cloud-computing market keeps growing as companies move an increasing number of workloads out of their own data centers, but executives from the leading cloud vendors said this week that clients are looking for ways to trim costs. And for Amazon Web Services, the leader in the space, it means a slimmer operating margin and less profit for its parent company. "We saw some headwind from slower growth of consumption with customers really looking to optimize their costs given that macro climate," said Ruth Porat, Alphabets finance chief, on Tuesdays earnings call. 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 theyll 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.

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