ICICI Securities: Technology Sector Check - Hype On The Cloud, Reality On The Ground
Fiber-optic cables connect data servers at the headquarters of a cloud service company. (Photographer: George Frey/Bloomberg)

ICICI Securities: Technology Sector Check - Hype On The Cloud, Reality On The Ground

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We have earlier written in depth about the huge disconnect between hype and reality around accelerated cloudification / digitalisation post-Covid-19.

September 2020 earnings/outlook of global technology companies (Microsoft, Amazon Web Services (AWS), SAP etc.) strongly corroborate our thesis.

Rather than reporting a major spurt, incremental sales (QoQ) booked by AWS and Microsoft ICS (Azure++) post Covid-19 were weak (9M CY20: down 24% to up 5% YoY).

This does not reconcile with the hype around cloud being the backbone for business continuity during the lockdown.

Click on the attachment to read the full report:

ICICI Securities Technology Sector.pdf

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