Amazon executives hint AWS cloud slowdown could get even worse

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Amazon's cloud business just reported its slowest growth ever, and executives hinted it could get even worse

for the third quarter, the slowest expansion since the company started disclosing the number in 2014. hinted things could get even worse. During Thursday's analyst call, Olsavsky said AWS's growth rate decelerated as the third quarter progressed, falling down to the"mid-20% growth rate" in the latter part of the period.

"With the ongoing macroeconomic uncertainties, we've seen an uptick in AWS customers focused on controlling costs," Olsavsky explained. RBC Capital's Brad Erickson wrote in a note Thursday that AWS was the"primary downside contributor" to Amazon's earnings report. Baird Equity Research's Colin Sebastian also noted that AWS"was the biggest disappointment" in the third quarter report.

Olsavsky said AWS customers are cutting budgets and trying to save money as the economic outlook darkens. To help those customers, AWS is offering lower-priced options and a more cost-efficient chip processor service, he said.

 

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It's not hard to run a server farm. Being first only gets you so far, in the long run competitors will catch up.

If there’s a finite amount of growth how can growth be forever?

I would wait for a Pony Express rider before using Amazon! 😂

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