Cloud data centers are becoming more popular because they’re less expensive and give you more flexibility. However, the downside is that your workloads aren’t protected by laws such as the GDPR and Microsoft’s Data Protection Principles.
The firm will have to pay over $800 million in additional energy costs just to operate its data centers due to increased costs. This comes on the heels of Microsoft’s Q2 earnings forecast, which show a 5% growth reduction compared to that of the firm’s first quarter. (Note: The second quarter ended in December.)
While Microsoft’s Azure and Amazon Web Services are their most successful digital businesses, not everything is going their way. Google Cloud experienced an unintentional jump in profitability, but its margin was far too low to contribute with the same budget as Microsoft’s AWS wing.
This quarter’s earnings marked a significant growth in profits for these three tech giants. In particular, Microsoft Azure saw an increase of $25.7 billion, while AWS saw an increase of $20.5 billion and Alphabet’s Google Cloud brought in $6.9 billion more money than expected.
Some Hyperscalers may find funds to fill the shortfall from high energy prices by using decentralized blockchain technology.
Postman is a Sentence Rewriter
Enterprises are feeling the pain of an increasingly expensive energy market. While it may be safer in the cloud at first glance, firms looking to shutter their on-premises operations may want to think twice – according to Bloomberg senior analyst Anurag Rana.
When it comes to cloud services, what you get for your money really does matter. Rana predicted that the CSPs will be able to manage this initial pain of transitioning workloads due to high scalability and efficiency potential of the cloud. This presents a huge opportunity for corporations that are looking to reduce costs and dealing with a more fractured customer base due to increased competition.
Rana also noted that hyperscalers could find the necessary funds by reducing staff. This is because hyperscalers have been so aggressive with hiring for many years.
