Key Points
Over the past two weeks, the likes of Microsoft, Alphabet, Amazon and even Meta, Apple and Tesla have indicated a weakening demand environment that could last at least two quarters..
Much of the growth the industry has experienced over the last three years has been the migration to cloud and this modernization phenomena has slowed considerably and is unlikely to return at the level it was post-Covid, said Peter Bendor Samuel, chief executive, Everest Group...
Gaurav Vasu, founder of technology research firm UnearthInsight, added that the bigger issue with hyperscalers giving a cautious outlook for the next two quarters- until March 2024 - is that these quarters are important for planning FY25 technology spends...
Q1 and Q2 of FY25 also looks extremely difficult for the Indian IT services firm due to revenue and growth slowdown from hyperscalar and the SaaS ecosystem across US and Europe market , said Vasu..
According to UnearthInsight, around 20-30% of revenue for the IT services segment could come from the cloud hyperscalers, although the quantum and relative share in the total revenue mix could differ significantly for individual companies...
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