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SaaS Multiples Are At a 3+ Year Low. Where It Goes From Here.

SaaStr

Amazon AWS, Microsoft Azure and even Google Cloud are on fire, adding insane amounts of revenue this year. The Bear Case: Multiples are still elevated compared to the pre-2018 period. So they can fall another 20%-30% just to revert back to that mean: SaaS was already on a tear starting in 2018.

SaaS 348
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When did cloud computing start to become popular?

SaaStr

Around 2013 or so, the Cloud started to grow far faster than any of us had thought it would: Amazon Web Services revenue 2018 | Statista. That $200b+ of additional Cloud and SaaS spend fueled 50+ Cloud unicorns and massive growth in AWS, Azure, etc. The markets took a while to catch up. There were dips in 2016 and otherwise.

Cloud 154
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What to Know About the Software Buying Landscape in 2023: What’s Changed, What’s the Same, and What Your Buyers Want with G2 CMO Amanda Malko (Video)

SaaStr

The role of AWS, Azure, and Google Cloud Marketplace is becoming increasingly important. “45% From the first quarter of 2018 to the last several years, there has been a nearly 8X increase in software helping companies drive existing customer outcomes. Go-to-market Partners released a report using G2 data.

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Why open source has never been stronger

IT World

Discover the Bossie Award winners: 2018’s best open source software for enterprise for software development, machine learning, cloud computing, and data storage and analytics. ]. Here and there an open source company might struggle to make a buck, but as a community of communities, open source has never been healthier. The clouds have parted.

Azure 74
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Open source has never been stronger

IT World

Discover the Bossie Award winners: 2018’s best open source software for enterprise for software development, machine learning, cloud computing, and data storage and analytics. ]. Here and there an open source company might struggle to make a buck, but as a community of communities, open source has never been healthier. The clouds have parted.

Azure 49
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How to Categorize Expenses in a SaaS Startup v2.0

Baremetrics

The company grew their total spend from $390k/mo to $750k/mo during 2018. To illustrate this better, take a look at the expense breakdown below for a made-up $6MM ARR SaaS company. Even without any breakdowns, obviously the CEO was fully aware of the company’s increased spending in sales and marketing.

Startup 90
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SaaS companies quickly replacing subscriptions with usage-based pricing

OPEXEngine

Usage-based pricing has been growing since at least 2018, when about a quarter of companies were using it, according to OpenView’s data. It has tended to be used most in infrastructure platforms, like AWS, Google Cloud, and Azure. Pricing model growth. But that has been changing.