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It does make me think about networking companies and dot.com. Fiber and networking gear considered themselves “real” businesses versus those “web” companies that imploded. Of course, all that IPO money had been buying their hardware and there was a echo crash and a decade of dark fiber.

AWS may have a significant customer base of VC funded startups which may be scaling back their spending rapidly; coupled with larger customers migrating to on premise it could eat away at both ends of their market share.



The issue is that AWS has double exposure. Startups and B2B company's selling to startups (e.g. datadog).

However, AWS will be fine. Their growth rate is what 30% YoY. I highly doubt the reduction in spend to comprise 30%+ of their revenue base.

AWS Growth rate over time. Note while growth rate declines, the amount of revenue added each quarter increased. (Percentages are easier to grow when you have a small base) https://www.statista.com/statistics/422273/yoy-quarterly-gro...




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