Google, Amazon and Microsoft are the landlords. Amidst the coronavirus economic crisis, startups need a break from paying rent. They’re in a cash crunch. Revenue has stopped flowing in, capital markets like venture debt are hesitant and startups and small-to-medium sized businesses are at risk of either having to lay off huge numbers of employees and/or shut down.
Meanwhile, the tech giants are cash rich. Their success this decade means they’re able to weather the storm for a few months. Their customers cannot.
Cloud infrastructure costs area amongst many startups’ top expense besides payroll. The option to pay these cloud bills later could save some from going out of business or axing huge parts of their staff. Both would hurt the tech industry, the economy