In a natural cycling of business priorities, enterprises that underwent modernization are now focused on consolidation. That realignment accounts for a temporary decline in cloud revenue growth, according to Nadella.
“Every large customer is looking to optimize the workloads that they have at scale today and plow some of that money back that they save into new project stock,” Nadella said.
Inflation and fears of a recession have increased enterprise budget hawkishness, pushing CIOs to review vendor contracts, scrutinize software spending and optimize cloud investments.
