More Risks for Cloud Providers as Customers Monitor Spending
Another reason why Google’s layoffs might impact its cloud division ties to provisioning. This actually applies to all cloud providers, but it’s a graver danger for Google Cloud because its margins remain in the negative, according to Seeking Alpha.
What we’re talking about here is organizations’ understanding that it’s time to control and optimize cloud spend. For years, organizations, believing cloud would cost less than on-premises data centers, overprovisioned and overpaid, largely because they were not monitoring their outlay.
Now, as executives and shareholders demand greater spending accountability, cloud end users are paying closer attention to expenses and, in many cases, pulling back. Some amount of cloud provider layoffs come as a natural reaction to that shift.
