Will Cloud Computing Be Affected by Recession?

Tom Keane
4 min readSep 18, 2022

Today’s economy is not in great shape. Gas prices are on the rise, grocery costs are out of hand, and pay cuts are a concern on every worker’s mind.

Historically, businesses looking to save money would target their IT department. But with the growing value of digital technology and cloud computing in particular, people in tech positions can count on job stability even in the toughest of times.

This article will look at recession and cloud computing and what we can expect for the future.

What is Cloud Computing?

Cloud computing is defined as on-demand access to computer system resources, including data storage, and computing power. It eliminates the need for active management with a pay-as-you-go model. This allows one to access services on an as-needed basis.

The technology is used by several types of organizations as it provides a variety of technology so you can build and innovate faster. It saves money in that it allows you to use only the resources you need. It offers expansion potential to geographic regions across the globe in minutes.

Cloud computing is mainly used for three types of technology as follows:

● Infrastructure as a Service IaaS: IaaS offers IT building blocks such as access to network features, computers, and data storage. It provides flexibility and control over IT resources.

● Platform as a Service: PaaS eliminates the need for managing underlying infrastructure so you can focus on managing and using your applications. It boosts efficiency and minimizes the need for you to deal with things like capacity planning, software maintenance, patching, and more.

● Software as a Service: SaaS is a complete product that is run by the service provider. It is typically utilized by an end user and eliminates the need to understand how the service is maintained or managed. You only need to learn how to use the software.

Cloud Computing and the Economy

The current recession is affected by a variety of factors, including the labor shortage, supply chain disruptions, and rising gas prices. While unemployment isn’t a concern considering the labor shortage, cutbacks may occur. So, do people employed in cloud computing need to be worried?

Experts say no, and here’s why.

It’s an Investment: While businesses may be making cuts in other areas, they are looking at digital technology as an investment. Cloud computing is particularly valuable as it allows for innovations that keep companies on top of the competition. It causes disruptions in the market that can establish a business as a thought leader in its industry.

It’s Valuable to Digital Based Businesses: Today, we are seeing a rise in digital-based businesses such as rideshare companies, residence sharing applications, real estate brokerages, and more. The artificial intelligence cloud computing offers allows these companies to lower costs and increase productivity. This makes it a technology that is too valuable for these businesses to cut.

The Talent Shortage: The world has been facing a talent shortage due to the pandemic and its repercussions. Cloud computing is an alternative to hiring talent, and it’s also less costly. Furthermore, it eliminates the need to continue hiring and training new talent, which also requires a time and money investment.

It Promotes an Innovative Image: Today’s businesses like to maintain an image of being on the cutting edge. Cloud computing adds to an identity of positivity and innovation which must be upheld even in the toughest of financial climates. Making cutbacks could deflate that reputation which can be extremely detrimental to business.

It Supports an Online Business Model: Another side effect of the pandemic was that it drew attention to the possible need for businesses to move from an in-person to a virtual model at the drop of a hat. Many companies that had to make the switch are realizing how effective a digital platform can be in saving time and money. Continued investment in cloud computing allows for an easy transition from life to digital if and when the need arises. It also allows businesses to keep up their efficient online strategies.


There is no doubt that investment in digital technology is on the rise. Despite the increase in inflation, most CIOs surveyed predict an IT budget growth of 5.3% to 5.7% in 2023. The biggest investments are being made in cloud computing, artificial intelligence, and automation.

While there is no guarantee that corporate spending will continue to support digital technology and cloud computing, the technology’s ability to improve business models makes them less likely to end up on the chopping block. However, as new technologies take over, we can only wait and see whether cloud computing will still be a favorite or whether something else will take its place as a wise company investment. Those in the tech field are advised to keep growing their knowledge and be ready to jump on the next trend to ensure job security in the future.



Tom Keane

21-year Microsoft Developer and Manager | Seattle, Washington