Software sales were down by 12% last year as more companies transitioned to cloud computing, but this year is expected to be even more intense, according to research firm App Annie.
The company’s annual Software Sales Index report found that cloud computing has been a key driver of the slowdown in software sales, with a total of 1,929 companies shifting to cloud-based services.
According to the report, this year’s sales will be the worst since 2010.
The biggest losers include the likes of Amazon Web Services (AWS), Rackspace (RSL), and Microsoft Azure.
The software giants lost 6,300 jobs last year, according the report.
While this was a down year for Amazon, it was down from 2016.
Sales were down 8.3% to $5.8 billion in 2017, but that is expected at least to rise in 2018.
This year, the report found, cloud-computing companies are going to lose $3.4 billion in total sales, including $2.3 billion from AWS.
Rackspace is the only other software giant that is losing money.
App Annie said it expects this year to be the best in software industry history, but it also predicted that software sales will decline by about 5% in 2019.
“There is no doubt that cloud is a driver of software sales growth in the coming years, and that cloud-related software spending will continue to decline,” the report said.
This will be a tough year for all the software companies that have transitioned to the cloud, including Apple, Facebook, Amazon, Google, and Microsoft.
Microsoft announced in February that it will be ending its cloud-oriented enterprise software offerings, which had made the company the biggest software company in the world by revenue.
This included Microsoft Office 365, Dynamics 365, and Azure, and other software and cloud services that it sold.