Helping design and engineering professionals discover, evaluate and specify technologies and processes that shorten the design cycle and enable success.
Cut Retrieval-Augmented Generation (RAG) Hallucinations by 50%
Most teams hit the same wall with enterprise AI: LLMs that hallucinate, pipelines that don’t scale, and infrastructure that’s harder to design than the models themselves.
What Is Intelligent BOM Management? A Guide to Smarter Product Development
Learn how intelligent Bill of Materials (BOM) management helps teams collaborate, reduce errors, and bring innovative products to market faster with cloud-based PLM tools.
Though big tech pushed forward by aggressively spending on building a cloud computing infrastructure during the June 2022 quarter, experts say they wouldn't count on that approach continuing, according to news from Investor's Business Daily.
For 2023, folks on Wall Street anticipate a notable slowdown in spending by major technology firms on the warehouse-size data centers filled with advanced computing and communications technology that comprise the cloud. Their projections suggest that cloud spending growth could slow from the mid-20% range down to mid-single digits.
At Susquehanna Financial, analyst Mehdi Hosseini puts forth numbers on big tech spending on cloud infrastructure, expecting it to grow 23% in 2022, a slight dip from 25% growth last year. For 2023, Hosseini forecasts "flat to up to 5% year-over-year" growth.
"We expect a digestion/slowdown in 2023," he said in a report. "In our view, the 'calm' in the current cloud spend is like the 'calm' before the hurricane hits the beaches."
Wall Street analysts vary in how they see capital spending on cloud computing. The three household name providers of cloud services—Amazon.com's Amazon Web Services, Microsoft and Alphabet's Google—are often included in forecasts.
Most analysts include Facebook parent Meta Platforms. Some include Apple or Alibaba Group and second-tier cloud players such as IBM and Oracle.
At Morgan Stanley, analyst Erik Woodring tracks U.S. spending by the top 10 cloud companies. He excludes Amazon because the tech giant doesn't break out cloud infrastructure spending from warehouse fulfillment and logistics capex.
In 2022, Woodring expects 25% cloud capex growth based on a strong June quarter. But he expects cloud capex growth to fall to 5% in 2023, according to the news reported by Investor's Business Daily.
"The cloud capex deceleration in 2023 suggests that hyperscalers may be entering a digestion period after three consecutive years of accelerating cloud capex growth," Woodring said in his note to clients.
Spending on cloud infrastructure jumped during the coronavirus pandemic. It came as e-commerce boomed.
Sources: Press materials received from the company and additional information gleaned from the company’s website.
Amazon Web Services (AWS) provides the most elastic and scalable cloud infrastructure to run your HPC applications. With virtually unlimited capacity, engineers, researchers, and HPC system owners can innovate beyond the limitations of on-premises…
Virtually Limitless High Performance Computing and Machine Learning
AWS HPC is enabling customers to create multiple "world firsts" on their own.
DE's editors contribute news and new product announcements to Digital Engineering. Press releases may be sent to them via [email protected].
Follow DE
Join over 90,000 engineering professionals who get fresh engineering news as soon as it is published.
About Us · Contact Us · Editorial Team · Advertising · Privacy Policy · Subscriber Services · © 2026 Digital Engineering 24/7 · Peerless Media