21 place 8

175 Why Big Tech’s Cloud Shift Threatens Microsoft and Google’s Margins

The Information
Martin Peers @ The Information 3 place · 08/01/2025 18:00 EDT

Why Big Tech’s Cloud Shift Threatens Microsoft and Google’s Margins

Don’t count out Amazon. This was not the commerce cloud giant’s week, to be sure. When it comes to the great artificial intelligence cloud race, which now overwhelms all else in tech, Microsoft and Google appear to be ahead. Both companies posted accelerating growth in their cloud units for the June quarter, unlike Amazon. But one element is widely missing from the discussion: how a long-term shift in big tech’s business mix toward cloud services could squeeze profit margins for both Microsoft and Google wh

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