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Let’s break down the numbers that should make every SaaS founder rethink their growth assumptions: The Growth Trajectory That Breaks Every SaaS Model Anthropic’s Revenue Timeline: 2022: $10M (founding year revenue) 2023: $100M (10x growth) Dec 2024: $1B ARR (10x growth again) July 2025: $4B ARR (300% growth in 7 months) That’s 100x (..)
What This Means for the Market For Competitors : Snowflake, AWS, Microsoft, and Google are all scrambling to respond. Platform Effects Are Stronger Than Ever When customers use 6+ Databricks products, they’re not just buying software—they’re adopting an entire data architecture. The switching costs become astronomical.
AWS, Twilio, Heroku, etc. So does Expensify, which decreases the time to file expenses. Cost-based pricing is when startups mark up the product they sell by some margin. Many infrastructure as a service companies do this. During economic contractions, sales cycles tend to lengthen, particularly for usage-based pricing models.
There are so many similar stories coming out of AWS ReInvent every year. It was ~4 years after AWS was launched and the public cloud started to take off. They’d announce a ton of new products on stage, and the initial reaction was always “Wow! They just killed X, Y, Z startup!”
This fuels a robust ecosystem of AI chips (Nvidia, AMD), cloud AI services (AWS Sagemaker, Azure AI, Google Cloud AI), and SaaS integration (Salesforce Einstein, Microsoft 365 Copilot, Adobe Firefly). AWS Trainium2 & Ultracluster supercomputer details unveiled; embeds 64 Trainium chips, used by Anthropic + Apple trials.
But you better be prepared for a haircut if you raised at frothy valuations in 2021-2022. They’re the “AWS of AI” and will capture massive value. What this means for your startup: If you’re doing north of $500M in revenue with 30%+ growth, the IPO window is officially open. A fund returner is simply not enough.
The Infrastructure Math Is Unprecedented The Capital Intensity Is Off The Charts: Big Six tech CapEx: $212B annually (63% YoY growth) Microsoft AI business: $13B run-rate (175% YoY growth) NVIDIA data center revenue: $39B quarterly (78% YoY growth) Amazon AWS CapEx as % of revenue: 49% (vs. Token Costs Collapsed 99.7%
It’s been really interesting, I think things started going a little squirrely in software in 2022 maybe late 2021, but there was like a 20 year nirvana like environment that, that preceded that. I would say after 2022 was a really tough year for revenue leaders. And so as I think, as things have gotten tougher.
— Jason Be Kind Lemkin (@jasonlk) October 27, 2022. — Jason Be Kind Lemkin (@jasonlk) November 3, 2022. Atlassian noted a decline in Free to Paid conversion, but importantly, no decline in demand for their products: Amazon: We’re Seeing Strong But Slowing Growth at AWS to 28%, Albeit at a Stunning $82B Run Rate.
cons is closer to 16% growth — Jordan Novet (@jordannovet) April 13, 2023 So Amazon came out with its latest annual shareholder letter and it was even more cautious on AWS growth than I was expected. AWS said they weren’t going to push folks to sign punitivate contracts, or block downgrades, etc. Lower than I predicted.
— Jason Be Kind Lemkin (@jasonlk) October 28, 2022. Second, AWS, Azure and Google Cloud all grew nicely, and are still growing like a weed — but the growth rate slowed. AWS and Microsoft Azure all reported more customers scrutinizing spend and working to manage their bills more carefully. Perhaps as it should be.
AWS announced earnings earlier today and reported 33% growth. AWS’s growth rate is the slowest of the three largest public infrastructure clouds. With about 39% market share, AWS reigns supreme as the largest provider. With about 39% market share, AWS reigns supreme as the largest provider. Q/Q Growth Rate Change.
Why Customer Success and Product Should be Best Friends: Lessons Learned with AWS’ Head of Customer Success Harini Gokul. The post Session Registration Open for SaaStr Build 2022: Sign Up to Hear HubSpot’s GM, Amplitude’s CEO, AWS’ Head of Customer Success and CircleCI’s CEO appeared first on SaaStr.
Ok, after a record-setting 2022 SaaStr Europa in Barcelona, we’re gearing up for the 8th SaaStr Annual! SaaStr Annual Sep 13-15 2022 in the SF Bay Area , 10,000+ of us together, spread out across 40+ acres outdoors, festival-style again! Jen Dawson @ AWS. The post 100+ of the First Speakers at 2022 SaaStr Annual!!
We wanted to give a special shout-out to some of our newest sponsors for SaaStr Annual 2022. Currently, we offer Apache Kafka, Apache Cassandra, PostgreSQL, MySQL, OpenSearch, Redis, InfluxDB, Grafana, and M3 in more than 90 regions around the world on AWS, GCP, Microsoft Azure, DigitalOcean, and UpCloud cloud platforms.
Ok we’re all gearing up for 2022 SaaStr Europa in Barcelona — join us there at the beach with 2,500 of your SaaS BFFs on June 7-8! SaaStr Annual Sep 13-15 2022 in the SF Bay Area , 10,000+ of us together, spread out across 40+ acres outdoors, festival-style again! Jen Dawson @ AWS. Olga Perez-Bonnelly @ Elastic.
We wanted to give a special shout-out to some of our newest sponsors for SaaStr Annual 2022. Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure. Join these incredible companies to experience all the value of SaaStr! appeared first on SaaStr.
My summary of Venture Markets in Nov 2022: Series B and later even worse than looks in data: 85%+ of investing here has simply ceased. — Jason Be Kind Lemkin (@jasonlk) November 2, 2022. Seed and Early Series A: Deals take longer but off about 40%. The best are still growing, if not faster than ever, then still close to it.
There are many ways to slice-and-dice public market data, but the headline one Bessemer called out is the most visceral I’ve seen: Public SaaS and Cloud companies lost $1 Trillion in market cap so far in 2022. At the same time, the leaders in Cloud (AWS, Azure, Google Cloud) are growing a stunning 40%.
So follow AWS, Azure and Google Cloud. jasonlk) May 16, 2022. Let’s look a whole level up to the real canaries-in-the-coalmine: AWS, Azure and Google Cloud. And AWS grew 37% at a $74B run-rate , down a bit from 39% the prior quarter but still adding an insane amount of new revenue. jasonlk) April 13, 2022.
Sales Organization 1 Miro 2 Okta 3 Arctic Wolf 4 Sprout Social 5 Google 6 Clickup 7 Cisco Meraki 8 Microsoft 9 Klaviyo 10 AWS 11 Rippling 12 Fivetran. — BowTiedCocoon (@BowTiedCocoon) April 14, 2022. Base Salary + OTE + Top Performers Comp per company summarized in G Sheet below. But The Best Ones Make $261k.
— Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) August 3, 2022. And inflation is awful. Take a look at our deep dive with CEO Henry Shuck from 2022 SaaStr Europa here: #2. — Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) August 3, 2022. But sure, call it a downturn [link].
Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: Datadog, ZoomInfo, Atlassian, AWS: Epic Growth — But Some Real Headwinds For The First Time. SaaStr 607: AMA with SaaStr Founder & CEO Jason Lemkin at SaaStr Annual 2022 – Part 1. ? ?.
And as you can see above, valuations started to grow into 2019 … exploded in 2020 and 2021 and into 2022 , which sort of made sense, as overall growth rates exploded … but then valuations for the best of the best have stayed persistently high. So you can discount some of this as outliers, even the outliers of the outliers. We’ll see.
Many have used Digital Ocean at the cheaper, simpler version of AWS-Azure-Digital Ocean to get going fast and quickly. ARPU was up +28% from 2022 over 2021, and another 6% the past 12 months on top of that. And if so, maybe that’s Digital Ocean. If you haven’t heard of Digital Ocean, ask your developer. Or at least.
— Byron Deeter (@bdeeter) May 5, 2022. — Jamin Ball (@jaminball) May 5, 2022. Amazon AWS, Microsoft Azure and even Google Cloud are on fire, adding insane amounts of revenue this year. jasonlk) May 6, 2022. #3. pic.twitter.com/JNnzizB82v. But what matters most for founders? pic.twitter.com/nTpARN30cC.
jasonlk) May 20, 2022. But they kept on going, and gong, and growing. years later, in a market down 50% …. They’re worth $2.7 Billion #golong pic.twitter.com/nA8jSXgehx. — Jason BeKind Lemkin #???????????? The markets for SaaS and Cloud stocks are down 50%+ in just a few months, and it hasn’t spared even the leaders.
AWS is the largest infrastructure provider by revenue, so its trajectory will shed more light on the patterns of software buyers. UBP spend fluctuates by the month and introduces more volatility into bookings. I bet it’s some combination of the three. Regardless, Amazon’s data will break the tie Thursday.
2022 Growth Was Down from 2021, But Almost the Same as 2020. Growth was 35% in both 2022 and 2020. Not a surprise, and very similar to HubSpot’s ratios here — but always interesting to see. And again a challenge to everyone in SaaS to go global. #4. Another simple example of 2021 being the outlier year. Not Yet Non-GAAP Profitable.
Consistently Strong NRR — And Higher Than 2022 Crowdstrike has targeted a 120% NRR benchmark and it’s interesting to see how it’s fluctuated blow over the past 5+ years. 64% of Large Customers Sourced From Partners They are AWS’s largest cybersecurity partner. ” #7. Only Founded in 2011.
We’ll see 2,500+ of the best SaaS founders, execs, and VCs June 6-7 at 2022 SaaStr Europa ! Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure. Grab tickets here. . Join these incredible companies to experience all the value of SaaStr!
— Jason Be Kind Lemkin (@jasonlk) November 10, 2022. Now, to a small fund, or a new VC, I’d think a $14m loss would just be awful. There’s an FTX or two in every VC portfolio. Some may even be more than just 1%-3% of the committed capital pic.twitter.com/hqca4dfVxY. It would be to me. >> Going Big.
After polling CIOs, Gartner found that total SaaS spend will grow from $100B in 2020 to $140B in 2022: A few interesting implications and learnings: The growth in SaaS buying should give you a +20% a year boost on top of your other sales and marketing efforts. But that’s just the start. That’s a huge tailwind. Go make it happen.
G2 track data supports expected spending increase in 2022 with average quarterly SaaS spending up 15% YoY.”. Last year, over half the companies surveyed reported intent to increase software spending in 2022. The role of AWS, Azure, and Google Cloud Marketplace is becoming increasingly important. “45%
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.”
2022 continues to be a grave reminder that change is constant. In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. I mean AWS or whatever might be going up too. What does this mean for B2B SaaS businesses?
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 Downgrades This week UBS came out with a couple research reports citing concerns in AWS / Azure growth. If we rewind back the clock to the start of 2022 the big debate was rates. This brings me back to AWS / Azure downgrades. Inflation was starting to run rampant and we knew rates were going up. .”
We thought it would be great to take a look back at our State of the Cloud Marketplaces Report and share some of the key findings for those who may be planning to launch their Cloud Marketplace business in 2022. . From our 2021 State of Cloud Marketplaces Report , here are three recommendations for software sellers in 2022. .
This can lead to an airpocket of valuation as companies transition to a different primary valuation metric Outside of the hypserscalers (Azure, AWS, GCP) who have uniquely benefited from AI revenue (mainly selling compute), everyone else has largely struggled. Coming in to Q1 there was broader optimism. Q4’s were generally good!
In the run up to SaaStr Europa 2022 in Barcelona on June 7-8 , we’re taking a look at some of the top all-time SaaStr Europa sessions. Join us at SaaStr Europa 2022. That’s typically the AWS model, depending on how much space you take, service space, you will pay more. Want to know what to expect at SaaStr Europa?
2022 continues to be a grave reminder that change is constant. In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. I mean AWS or whatever might be going up too. What does this mean for B2B SaaS businesses?
Typical data lake storage solutions include AWS S3, Azure Data Lake Storage (ADLS), Google Cloud Storage (GCS) or Hadoop Distributed File System (HDFS). The warehouse is then optimized for efficient access (typically through SQL) to that data, with a number of other properties layered in (like governance, access, security, etc).
From a new logo bookings perspective, we had our largest Q2 and second largest quarter ever, only behind the seasonally larger Q4 2022.” The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs). However, it’s not showing up in the data yet.
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