Rising Cloud Bills May Get a Breather

By Anonymous

Big tech’s capital spending surge may start to cool, though unlikely for long

When the world’s largest tech companies report third-quarter results in a few weeks, how much they spend will be at least as important as how much they make.

The enormous, so-called “hyperscale” networks owned by Alphabet Inc.’s Google, Amazon.com, Microsoft and Facebook demand a staggering amount of capital expenditures. That spending is now an important revenue stream for a long list of other tech companies that supply key components such as chips, software and networking gear.