Also I don’t think any of these companies has handled big capex programs in the past (maybe AWS a bit since Amazon is building things, but it did so incrementally), aka they don’t have the institutional knowledge to manage the risk associated with it.
If you're going to bring up CapEx, Cloud is entirely a CapEx vs OpEx play so AWS and GCP are entirely familiar with the risks there. AWS dates back to 2006 and Google was building data centers long before GCP was public. Smaller, sure, but their finance team understand CapEx and OpEx well.
Masayoshi Son does a pretty good job of setting about that much cash aflame every year.
maybe it is wrong to spend 200B every year continuously to begin with.
Also I don’t think any of these companies has handled big capex programs in the past (maybe AWS a bit since Amazon is building things, but it did so incrementally), aka they don’t have the institutional knowledge to manage the risk associated with it.
Semiconductor/ Big Oil/ Rail/ Telco have.
If you're going to bring up CapEx, Cloud is entirely a CapEx vs OpEx play so AWS and GCP are entirely familiar with the risks there. AWS dates back to 2006 and Google was building data centers long before GCP was public. Smaller, sure, but their finance team understand CapEx and OpEx well.
I don’t think I agree. Cloud has not faced (yet) a serious downturn.
I can invest perfectly in an always up market.
> Cloud has not faced (yet) a serious downturn
2008 wasn't a serious downturn?