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AI Reaccelerating Cloud Growth

Tom Tunguz

“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.” ” Microsoft’s presence in the developer ecosystem continues to astound.

AI Search 271
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Seven Strategic Rationales for the Microsoft/Github Acquisition

Tom Tunguz

It’s a massive acquisition at a massive price relative to other software acquisitions. The Skype acquisition was also about identity, consumer identity. Microsoft has published Linux and FreeBSD for Azure. This acquisition capstones the commitment. Why is Microsoft willing to pay so much? Developer identity.

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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

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. If we break this down and look at Azure and AWS independently (graphs below), you’ll see how the AWS “swings” were a lot more volatile.

Cloud 177
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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 guided to 26-27% growth in Azure in Q2 (with 1% coming from AI).

Trends 130
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Why Would Microsoft Buy Wunderlist and Later Just Shut it Down?

SaaStr

For a Really Big Tech Company, any acquisition of less than about $1b is somewhere between an experiment and a bet. Once Office 365, Azure, etc. And maybe even almost an experiment. Buying Wunderlist for $150m sure sounds like a lot to me and you. But the reality is, it’s 0.1% of Microsoft’s market cap. But an experiment.

Azure 265
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Clouded Judgement 1.27.23

Clouded Judgement

Azure (Microsoft) Quarter The week the first of the cloud giants reported - Azure. Early Look at 2023 Guides Given the Azure weakness reported on Tuesday, all software tumbled Wednesday morning with most names down 5-10%. Every week I’ll provide updates on the latest trends in cloud software companies.

Cloud 141
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Four Sales Compensation Tactics for Consumption-Based GTM with MongoDB’s SVP of Sales

SaaStr

What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. Driving Market Acquisition When designing a compensation plan, you have to decide what behaviors you want to drive. The first might be market acquisition. This is MongoDB’s approach.