At first glance, there has been very little cause for celebration in the tech industry this year. As the global economy slowed through the first quarter and inflation soared toward forty-year highs across the developed world, the tech giants seemed far from immune.
Big Tech seemed like it might have the most to lose after the unprecedented bull run of the past two years. By April, even Jeff Bezos was hinting at the “painful” slowdown ahead.
As it turned out, painful was an understatement. Following disappointing earnings reports, the tech giants shed more than $1tn in value in just three days in early May.
And while things have recovered somewhat from the lows of May and June, some analysts think the worst may not be over.
However, if we look closely, not all is doom and gloom. Some areas of the tech industry have continued to perform well, counterbalancing the otherwise dire news.
The cloud computing industry has seen significant growth even amidst the broader downturn. While industry leaders Amazon, Google and Microsoft have struggled in other areas, their cloud divisions have bucked the trend:
Amazon saw its AWS cloud services grow by 33% in Q2 2022, outpacing Wall Street estimates.
Microsoft’s Azure grew even more rapidly, reporting 40% growth in the same period – far outpacing the company’s 12% overall gain in revenue.
Google was slightly ahead of AWS with 35% growth, though it continues to struggle for profitability.
Strong performances for their cloud divisions have helped Big Tech companies to offset the effects of a harsh macroeconomic climate – something that Microsoft sought to highlight in its quarterly results announcement.
The cloud is here to stay
The fact that the cloud industry has been resistant to the ongoing economic turbulence offers an important lesson.
While specific aspects of the tech industry may see a slowdown or contraction in the coming years, the cloud will likely remain strong.
And this is perfectly logical. Whatever the fate of a specific technology – AI, machine learning, or the Internet of Things, to name just a few – cloud computing will be necessary if any or all of them are to flourish.
Thus, while certain sectors may be slow to evolve or may even see a decline, the cloud itself will remain essential.
This makes cloud computing an exceptionally robust industry, even in times of significant economic turmoil.
Recent market projections confirm this: according to one report, the market is expected to reach $1tn by 2028, at a compound annual growth rate of 15.8%.
Given this, we need to actively consider what the future of the cloud will look like. At present, the highly centralised public cloud infrastructure faces several issues:
- Disruptive outages significantly hampering web traffic for prolonged periods.
- Escalating environmental costs due to reliance on hyperscale data centres.
- Latency issues due to the distance between the end-user and the data centre.
These are problems that continued growth will likely only exacerbate – unless we can find an alternative.
Thankfully, we can tackle all these issues with a single, radical solution: decentralised cloud computing.
By distributing computing tasks across an open network, we can reduce the risk of outages and minimise the reliance on hyperscale centres while bringing computing closer to the edge – exactly what Cudo Compute will do.
About Cudo Compute
Cudo Compute is an ecosystem providing access to decentralised and sustainable cloud computing resources by leveraging underutilised computing power on idle hardware globally.
Cudo Compute is the Airbnb for sustainable computing. Like Airbnb’s marketplace, which allows owners to rent out their unused homes, Cudos will facilitate businesses and individuals to lend their hardware’s unused compute to users/organisations that might need it.
The Cudos platform allows organisations and developers to deploy, run and scale based on their cloud demands.
Click here to learn more about Cudos