What Musk vs AWS Tells Us About Cloud Pricing and An ARM IPO A-Coming 3/6/23
TechCheck
CNBC
4.5 • 66 Ratings
🗓️ 6 March 2023
⏱️ 8 minutes
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| 0:00.0 | Today in focus, slowing growth at cloud companies, and today's case study comes from Elon Musk's cost-cutting campaign over Twitter. |
| 0:07.0 | Have a listen. |
| 0:08.0 | I think I need to stabilize the organization and just make sure it's in a financially healthy |
| 0:16.5 | place and that the product roadmap is clearly laid out. But how much can you really slash while keeping the business |
| 0:25.1 | running? Musk has been able to keep the lights on shore but it has come at a huge |
| 0:28.8 | cost of fundamentals, a 40% annual decline in revenue and earnings. |
| 0:33.0 | That's according to the journal. |
| 0:34.6 | In terms of those cuts, first it was head count of course, |
| 0:37.2 | then it was office base. |
| 0:38.3 | Its sales force bill by some 75%. |
| 0:40.8 | Now reportedly, it's cloud bill with Amazon Web Services and AWS could be a new kind of |
| 0:46.4 | test here because Amazon is also an advertiser on Twitter and the information reports that |
| 0:51.6 | Amazon has threatened to withhold payment for |
| 0:53.9 | advertising it runs on Twitter because Twitter is refusing to pay its |
| 0:57.5 | cloud bill. More broadly though this showdown is really highlighting the |
| 1:01.0 | vulnerabilities at both of these companies. |
| 1:03.8 | The slowdown at the Cloud Giants, Amazon, Microsoft, Google, that is already one of, if not |
| 1:08.4 | the most important story in software this year. |
| 1:11.6 | These models are consumption based. So you only pay for what you use |
| 1:15.2 | and as it turns out it's pretty easy for companies to cut their usage and their bills. |
| 1:19.1 | Look at Amazon's cloud growth over the past six quarters. |
| 1:21.8 | It has been hit very hard by that trend. The street |
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