Ned and Chris discuss the supposedly uncertain future of cloud computing, reviewing recent CapEx and strategic shifts by leading providers, and speculating on AI’s impact on the future of technology.

Cloud Computing is Here to Stay

Ned sheds light on the reality behind the figures by digging into the growth strategies and market positions of top cloud providers including AWS, Azure, and Google Cloud. He highlights the stark contrasts in spending between AWS and Microsoft, including the inconsistency between AWS's words and actions when they compare the company's public pronouncements on AI investments with its actual investments. Furthermore, Ned and Chris discuss the growing impact of AI on cloud computing's future, paying particular attention to Microsoft's forward approach with OpenAI.

Show Highlights:

(00:00) - Intro

(03:55) - Tackling rumors about the decline in public Cloud computing 

(06:04) - Analysis of the growth trends of AWS, Azure, and Google Cloud alongside the law of large numbers.

(13:09) - The logistical hurdles of scaling cloud infrastructure.

(15:09) -  A look into variations in CapEx among the big three cloud providers

(21:50) - The increased durability of servers and its implications for cloud providers

(24:15) - The future impact of AI on cloud computing and Microsoft's early strategy with OpenAI.

(26:38) - Closing Remarks

https://docs.google.com/document/d/1WOVCsnKYl637Pzd5-6Js01Fb-NRdFV4XbzyNVRQ1rWc/edit?usp=sharing

Links: 

• In 2017, AWS had revenues of $12.2B, an increase of $4.3B from 2015
• The high level numbers for the big three
• A presentation from Broadcom that talked about their latest chips
• Microsoft FY24 Q2https://www.microsoft.com/en-us/investor/earnings/fy-2024-q2/press-release-webcast
• Amazon FY23 Q4
• Alphabet FY23 Q4