Clouded Judgement

OCTOBER 27, 2023

Subscribe now Cloud Giants Report Q3 ‘23 Not a great signal for software this week from the Cloud Giants (AWS, Azure and Google Cloud)…After Q2 (3 months ago), the tone from the Cloud Giants around optimizations was largely: optimizations have started to ease, and net new workloads have picked up. That is not new.”

Cost optimization & reporting 152

Cost optimization & reporting Cloud Azure AWS 152

Clouded Judgement

OCTOBER 20, 2023

Hyperscaler Preview Next week Amazon, Microsoft and Google report earnings and we’ll see Q3 data for AWS, Azure and Google Cloud. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Altimeter is an investment adviser registered with the U.S.

Cloud 161

Cloud Azure AWS Software Review 161

Clouded Judgement

OCTOBER 28, 2022

Hyperscalers Report Quarterly Earnings This week we saw AWS (Amazon), GCP (Google) and Azure (Microsoft) report earnings. Overall, it wasn’t pretty… AWS grew 28% when expectations were 30-31%. Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date!

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

OpenView Labs

FEBRUARY 9, 2021

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. Usage-based pricing will be the key to successful monetization in the future.”. Usage-based pricing is in all layers of the tech stack.

Scale 98

Scale Pricing Scaling AWS 98

Clouded Judgement

AUGUST 4, 2023

” These are two quotes about AWS on the Amazon earnings call. AWS grew 16% in Q1, but called out growth in April (first month of Q2) was 11%. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

JANUARY 6, 2023

Cloud Downgrades This week UBS came out with a couple research reports citing concerns in AWS / Azure growth. This brings me back to AWS / Azure downgrades. This was the worst tone that we’ve heard in years from large AWS/Azure partners, a group that usually expresses different shades of optimism about AWS/Azure growth.”

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

Clouded Judgement

FEBRUARY 16, 2024

” From AWS (paraphrased): They said they expect the reaccleration they saw in Q4 to continue into 2024 2024 Estimate Updates One important metric I’m tracking this quarter is the change in 2024 estimates pre / post earnings. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 161

Cloud AWS Metrics Subscription 161

Clouded Judgement

APRIL 28, 2023

AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Then AWS appeared to add fuel to that hope before giving us a huge rug pull. After all, they had a lot of AI tailwinds, and benefited tremendously from consolidation (without a headwind of a larger base of smaller startups, like AWS).

Cloud 130

Cloud Azure AWS AI Search 130

OPEXEngine

JANUARY 11, 2022

Consumption-based pricing is best used when you can accurately and easily break down your service offering into small, digestible units. Many companies in the technology industry are moving toward “pay for what you use” consumption-based pricing models. Four pricing models. Uncommitted contracts. Challenges and shifts.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

Clouded Judgement

APRIL 21, 2023

Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). On AWS, in their Q4 earnings call they said AWS was growing “mid teens” in January (down from 20% in Q4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

SEPTEMBER 8, 2023

” We saw some green shoots in AWS and a few other consumption names, and overall sentiment seemed more positive. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). I’ll post a much longer recap soon, but today I wanted to post the highlights.

Cloud 169

Cloud Software Review AWS Trends 169

Clouded Judgement

JULY 28, 2023

AI = Data + Compute I’ll continue beating this drum, but we got two great quotes from Azure and AWS this week. ” Then at AWS Summit they called out “Your data is your differentiator when it comes to Generative AI.” AWS reports next week. ” Data is more important than ever! So what did we learn?

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

MARCH 22, 2024

.” Let’s look at consumption revenue - this is also not technically recurring! It’s probably better described as re-occurring vs recurring. This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. Securities and Exchange Commission.

AI 183

AI Revenue Cloud Technical Advisors 183

Stax

APRIL 18, 2024

SaaS companies deliver software applications over the internet on a subscription basis, simplifying access and management for users. SaaS, or Software as a Service, companies host and deliver software applications over the internet on a subscription basis. Primarily through direct-to-user subscriptions and third-party distributors.

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

Clouded Judgement

NOVEMBER 10, 2023

Hyperscalers (AWS, Azure, GCP as companies look for cloud GPUs who aren’t building out their own data centers) Infra (Data layer, orchestration, monitoring, ops, etc) Durable Applications We’ve clearly well underway of the first 3 layers monetizing. Altimeter is an investment adviser registered with the U.S.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Clouded Judgement

SEPTEMBER 15, 2023

AWS growth seems to be re-accelerating, and qualitative feedback from a number of companies in Q2 (especially those with July quarter ends) suggested new customer bookings conversations were picking up. For the bottom 10 companies on the right hand side of the chart, the median change in stock price after earnings was (18%).

Software Review 130

Software Review Cloud Software AWS 130

SaaStr

NOVEMBER 14, 2023

Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. Key Takeaways Consumption-based pricing requires rethinking your organization.

Compensation 169

Compensation Sales Azure AWS 169

CloudGeometry

MARCH 3, 2022

It’s easy to get lost in the noise of “SaaS monetization makes the world go round,” “Subscriptions mean printing money,” and other hype. The more money you will have left to add more customers, get them committed to subscriptions, and keep them away from your competitors.

Well Architected Framework 130

Well Architected Framework VPCs (Virtual Private Cloud) SaaS Cloud 130

Clouded Judgement

JUNE 9, 2023

They did call out sequential growth in Confluent Cloud every quarter this year which was a big positive Still seeing elongated deal cycles and less expansion revenue The Bad AWS: Headwinds Getting Worse Their quarter ended in March, but on the earnings call they called out weakening growth in April.

Trends 130

Trends Cloud Azure AWS 130

OpenView Labs

MARCH 4, 2021

For their first five years in business, HubSpot offered three subscription packages ranging in price from $3,000 to $18,000 per year. So in 2011, they introduced usage-based pricing. This pricing change allowed HubSpot to share in the success of its customers. Download The Usage-Based Pricing Playbook.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55

SaaStr

SEPTEMBER 12, 2019

I’m talking about product-led growth as an investment strategy, but really my background is 10 years of operating experience in the product-led growth world. Now I’m investing in that. I say investment strategy, but really it’s like how do you build a company that’s focused on product-led growth?

Investment 100

Investment Underperforming Technical Team Sales Hiring Software Review 100

Clouded Judgement

MARCH 31, 2023

The majority of COGS (revenue less COGS = gross profit) fall in hosting costs (ie AWS), and some customer support. The only way for software companies to avoid this gross margin compression when incorporating AI features is to raise prices. Double the price! Consumption Pricing.

Cloud 130

Cloud Sales Hiring AI Headcount 130

SaaStr

MARCH 31, 2022

And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. AWS’s marketplace has seen 1.5 million subscriptions transacted and Google’s marketplace has seen 3X growth in SaaS sales. Like I said, we run 100% of our platform on AWS, so the fit was great.

Scale 194

Scale Marketplace as a Service Cloud SaaS Payments 194

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. We sometimes hear companies call themselves “SaaS” companies, because they sell subscriptions, but they do not host software. The product is hosted by the vendor or a 3 rd party (like AWS).

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

How To Buy Saas

MAY 15, 2024

Cloud computing services provide on-demand solutions and IT resources to companies via the Internet with pay-as-you-go or subscription-based pricing models. This may include infrastructural support like storage, security, network equipment, and data centers, as well as comprehensive applications built to perform specific tasks.

DevOps as a Service 52

DevOps as a Service Marketplace as a Service Cloud SaaS 52

Clouded Judgement

FEBRUARY 3, 2023

There’s a real chance the fed funds rate isn’t going >5%, and a soft landing or delayed recession is certainly possible (maybe even being priced in). If the market thinks the setup for H2 is great, it won’t wait until H2 to “price it in.” But what’s happened since? Lots of deceleration in growth.

Cloud 130

Cloud Azure AWS Generative AI 130

OpenView Labs

MARCH 16, 2021

The usage-based pricing model almost feels like a cheat code —it enables SaaS companies to more efficiently acquire new customers, grow with those customers as they’re successful, and keep those customers on the platform. But the shift from pure subscription to usage-based pricing is nearly as complex as going from on-premise to SaaS.

Pricing 52

Pricing Payments SaaS Payments Payment Solutions 52

Clouded Judgement

AUGUST 11, 2023

The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs). Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). However, it’s not showing up in the data yet.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

CloudGeometry

SEPTEMBER 7, 2021

It’s customers who pay the price. Those awesome new tricks that seem to show up out of nowhere within cloud-first applications like Google Workplace, Slack, Facebook, Twitter, Stripe, the iPhone, and Amazon (both eCommerce and AWS)? Keeping the customers who access your software and ensuring they renew their subscriptions?

DevOps as a Service 130

DevOps as a Service Software Development AWS Cloud 130

Frontegg

MAY 27, 2021

Making the bottom-up shift: You are shifting from the top-down to a bottom-up mindset, which means more money and time to invest in R&D efforts. Founded : 2011 Known customers: Facebook, IBM, Microsoft, AWS, Unity, Udemy, Shopify Price starts at: $38/month per user. #2 Best For: Online Payment Processing. 3 Frontegg.

Payment Solutions 98

Payment Solutions SaaS Payments Payments Scale 98

Chart Mogul

JUNE 23, 2022

This is a perfect time to invest in your user base & core product offering because playing to your strengths will pay off. You might be hard-pressed by your AWS bill but you’re not going to start replacing the engine to lighten the load mid-flight. Here are a few thoughts: 1. Dig Deep Into Your Financials.

SaaS 52

SaaS DevOps as a Service Marketplace as a Service Forecasting 52

OpenView Labs

FEBRUARY 11, 2021

As a founder, you can use this 84 cents to pay salaries, office rent, dividends, or invest in R&D. Pricing wars are another source of margin compression. While it’s true that there are no bad margins, you maximize them when your product ranks high on the buying hierarchy of functionality, reliability, convenience, and price.

Scale 52

Scale Payment Methods Payment Services Systems Review 52

SaaStr

APRIL 30, 2022

So growth of the kind of subscription, eCommerce industry has been over 100% year on year for the past five years, according to McKinsey. We look at annual churn, given the nature of those businesses that have annual or multi annual contracts with much bigger price items and tickets. Pricing is so sticky inside companies.

SaaS Payments 229

SaaS Payments Metrics Payment Methods Scale 229

User Pilot

APRIL 30, 2024

This article will look at the most successful SaaS companies, so you can decide if you want to invest in them for your business. Quickbooks and Xero are accounting SaaS products that help you send invoices, track expenses, and process payroll. There are many SaaS products , but knowing that, how do you choose the best?

SaaS Payments 104

SaaS Payments Payment Services Payment Methods Payment Solutions 104

ProfitWell

NOVEMBER 5, 2019

An automatic subscription renewal charge for a subscription you’re no longer using or that you don't even remember signing up for. Even worse, you go to cancel your subscription, only to discover it's nearly impossible. What is a subscription renewal? Shipping the product to customers (for ecommerce subscriptions).

Payment Features 49

Payment Features Subscription Payment Methods Merchant Services 49

Chargify

FEBRUARY 1, 2018

Over the last decade, recurring revenue has emerged as the preferred model for businesses moving beyond transactional commerce. While the first generation of recurring revenue was defined by simple subscriptions—think Netflix’s original “one-size-fits-all” $7.99 From Static Subscriptions To The Relationship Economy.

Subscription 75

Subscription Payment Features AWS Scale 75

SmartKarrot

SEPTEMBER 15, 2022

Scaling through SaaS accelerates this process by offering several benefits that make it easier for companies to grow without having to make major investments up front: Speed: SaaS solutions are easy to deploy and can be accessed from anywhere with an internet connection, which enables teams to work from any location at any time.

Scale 10

Scale Cloud Enterprise Scaling 10