Typically, as technology releases new inventions, customers tend to purchase the updated products. However, due to the turbulent economy that has been present in recent times, the customers of Microsoft, for example, are more cautious with regard to purchases and this is making the company a little worried. See more on this subject below.
After customers reduce their purchases, Microsoft feels the impacts on its last quarter revenue
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In the United States, Microsoft occupies an important role. According to reliable sources, the company generated the last quarterly balance sheet and found that there was a sharp drop in customer spending. Thus, the need for several layoffs was present.
For the company's executive president, Satya Nadella, this slowdown in the cloud is not very surprising, it only confirms that a gloomy scenario, seen in a macro way, is about to happen.
Learn more about this dark trend
Due to the instabilities in the economy, customers are increasingly reducing their consumption and giving preference to areas other than that of technology. Therefore, according to the more conservative management teams, this downward trend was to be expected.
To suffer less from the impacts, Nadella says that Microsoft will invest in Artificial Intelligence (AI) technology and added that this will be the new wave of computing.
Thus, the tech giant invested millions in OpenAI. She is behind ChatbotGPT. Due to the drop in revenue at the company, this new bet has been generating a lot of expectations at the institution.
For the third quarter, Microsoft predicts growth in its smart cloud business of 19%. Additionally, it posted better-than-expected revenue in the second quarter of this segment.
Other companies, ranging from Amazon.com Inc. to Meta Platforms, are already preparing for the declines in the coming months and, therefore, will have to cut thousands of jobs. The hope, for experts, is that the money will be invested in other areas of technology.
