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AI Reaccelerating Cloud Growth

Tom Tunguz

This growth is fueled by AI workloads. “Because of our overall differentiation, more than 18,000 organizations now use Azure OpenAI service, including new-to-Azure customers.” ” “Higher-than-expected AI consumption contributed to revenue growth in Azure.

AI Search 312
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5 Interesting Learnings from Salesforce at $40 Billion in ARR

SaaStr

Perhaps most importantly, Salesforce has leaned deeply into AI … and while the usage is impressive, so far it hasn’t materially changed growth. Nvidia, Google Cloud, Azure, etc. The Big Acquisitions Are Doing Well. But how about 2026+? We’ll see. Salesforce Growth: FY26 $40.9B (guidance) FY25 $37.9B

Scale 190
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How Your Sales Team Can Use PLG to Acquire and Expand New Customers Faster with Uday Chakravarth, Former Head of PLG at Atlassian 

SaaStr

With a PLG-heavy background, first working at Microsoft Azure and again with Atlassian, the PLG pioneers, he gives insights into leveraging PLG for the growth of your organization. It’s an end-user-focused growth model where your product drives acquisition, activation, expansion, and retention. That’s PLG. Why is it end user-focused?

Scale 299
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A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up).

Cloud 320
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

And once a customer has paid back the initial acquisitions costs to acquire it, all future streams of revenue can loosely be described as a cash flow annuity. This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. ERR stands for Experimental Runrate Revenue.

AI 193
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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

Who are the real AI winners. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g.,

Cloud 187
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Clouded Judgement 6.9.23 - Recap of Consumption Trends in Q1 '23

Clouded Judgement

Very healthy new business (new customer) acquisition. Usage on Snowflake is driven by queries run on Snowflake Azure: Neutral Tone With Strength in AI Overall I’d characterize Azure’s quarter as a net positive. ” They’re also seeing some real strength in AI Services.

Trends 130