Yen's fall highlights Japan's overreliance on overseas tech giants

Companies paying more for cloud services to Amazon and others

20240509 AWS file photo

One Japanese client of Amazon Web Services says: "A dollar at the 150 yen level was unexpected. ... We need something done about it."

KOHEI SAKAI, Nikkei staff writer

TOKYO -- The weak yen has highlighted Japan's economic vulnerability, as its industries depend heavily on cloud servers provided by overseas Big Tech companies such as Amazon.

Japan's digital services industry have been strained by the yen's depreciation, which has caused costs to surge and squeezed profits. The reliance on overseas service providers is part of Japan's "digital deficit," which has sent wealth abroad.

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