AWS, Azure and Marketing

The Capex Conquest in the Cloud

Tom Tunguz

APRIL 30, 2024

Cloud Capex in Q1 AWS $14 billion Azure $14 billion Google Cloud $12 billion These are not one-time investments, but part of a broader trend that started to occur after the introduction of GPT 3 in mid-2020 Amazon was the first to invest significantly. “Moving to AWS.

Cloud

Cloud AWS Azure AI

Bessemer: $1 Trillion in Cloud Market Cap Lost Year-to-Date

SaaStr

MAY 23, 2022

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%.

Cloud

Cloud Azure AWS Marketing

Dear SaaStr: What is The Average Ratio of Support Staff to Customer Count in SaaS?

SaaStr

JANUARY 27, 2024

Another 5%-7% go to core infrastructure costs (AWS, Azure, Snowflake, etc). It’s your top marketing and customer retention investment. Typically support consumes about perhaps 5%-7% of your revenue at scale (excluding customer success) in most SaaS models. It could be more or less, but that’s a rough way to think about it.

Azure

Azure AWS SaaS Customer Success

Webinars

Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You Need to Know

MORE WEBINARS

Clouded Judgement 10.27.23 - Cloud Giants Report Q3 '23

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. Staggering scale already.

Cost optimization & reporting

Cost optimization & reporting Cloud Azure AWS

Cloud-Based Solutions: The Sky Is the Limit for Retail Success

Speaker: Ryan Bryers, SVP of Global Engineering

With technology giants like Google, AWS, and Azure leading the charge, the true value of the cloud extends far beyond cost savings. In a rapidly evolving industry, the shift from traditional on-premise systems to cloud-based solutions has become crucial for retail success. Save your seat today!

Cloud

Clouded Judgement 2.2.24 - Cloud Giants Report Q4 '23

Clouded Judgement

FEBRUARY 2, 2024

Amazon on AWS : “…customers are continuing to shift their focus towards driving innovation and bringing new workloads to the cloud. ” Microsoft on Azure : “And I think last quarter, we said one, we are going to continue to have these cycles where people will build new workloads. Follow along to stay up to date!

Cost optimization & reporting

Cost optimization & reporting Cloud Azure AWS

How Much Should You Expect Your Startup to Slow in 2022?

Tom Tunguz

JULY 28, 2022

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.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) AWS Startup Azure

Gartner: Software Spend Will Grow 13.8% in 2024, to Over $1 Trillion For The First Time

SaaStr

NOVEMBER 6, 2023

If you’re selling sales and marketing software, like Zoominfo, it can seem a lot tougher than 12-18 months ago. Growth in public cloud services (AWS, Azure, Google Cloud, Snowflake, etc.) If you’re selling cloud infrastructure, for the most part, growth may be down a smidge but is still strong, e.g., MongoDB.

Merchant Services

Merchant Services Azure Software AWS

Predicting Cloud Growth Rates for 2023

Tom Tunguz

FEBRUARY 2, 2023

I’m watching public company earnings to identify early weaknesses in the software market. A year ago, AWS, GCP, & Azure averaged 44% annual growth. Amazon: We expect [customer] optimization efforts will continue to be a headwind to AWS growth in at least the next couple of quarters. So

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Cloud AWS Sales Hiring

Pilot: 57% of Venture Startups Will Need to Raise More In 2024

SaaStr

NOVEMBER 18, 2023

Something that’s both not surprising but also pretty impactful: 57% of venture-backed startups will have to go “back to market” in 2024 to raise more capital. Shopify , Datadog, Crowdstrike , Google Cloud-Azure-AWS, Snowflake , etc. What does Pilot’s latest data say? for the first time in 2024!

Startup

Startup Venture Capital Azure AWS

Google Cloud Anthos now available for AWS, with Azure to follow

IT World

APRIL 22, 2020

Google Cloud has announced that Anthos — the company’s software for deploying and managing Kubernetes workloads across multiple on-prem and cloud environments — now supports running workloads on rival cloud platform Amazon Web Services (AWS), with Microsoft Azure support still in preview for now.

Azure

Azure VP of Engineering AWS Cloud

A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

APRIL 11, 2024

The first few months of this year felt like a lot of churning in the market. 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. What I’ve shown below is the market-adjusted stock price reaction.

Cloud

Cloud Software Azure AWS

Clouded Judgement 4.28.23

Clouded Judgement

APRIL 28, 2023

AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Azure reported on Tuesday and gave us that glimmer of hope. Then AWS appeared to add fuel to that hope before giving us a huge rug pull. Azure came in at 31% (constant currency). They then guided to 26-27% Azure growth in Q2.

Cloud

Cloud Azure AWS AI Search

Grey Skies in Cloud Earnings

Tom Tunguz

OCTOBER 27, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Microsoft Azure. At a 7x multiple of revenue, that is another $84b of market cap creation, in theory. The kink downwards in the red line at Q-2 shows a sudden deceleration in AWS’ growth rate. Google Cloud Platform.

Cloud

Cloud GCP(Google Cloud Platform) Azure AWS

Founders Today Just Need to Assume the Next Round Never Comes

SaaStr

NOVEMBER 3, 2022

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. And while AWS’s growth is down a bit, it’s still at epic levels, Azure isn’t even really down, and Google Cloud is growing faster than ever. But only up to a point.

AWS

AWS Venture Capital Azure Cloud

The Health of Cloud Spending in Mid-2022

Tom Tunguz

JULY 26, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Microsoft Azure. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. That suggests the cloud market is quite strong. Google Cloud Platform. Google Cloud Platform. Amazon Web Services.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Cloud Azure AWS

The Critical Question Facing Web3 Infrastructure Startups

Tom Tunguz

APRIL 28, 2022

That’s much more work than the automatic credit card payment with AWS. Perhaps this dynamic drives consolidation in the market, paralleling the web2 infrastructure hypermarts of AWS, GCP, and Azure. It’s too much complexity for a simple static blog.

Payment Solutions

Payment Solutions GCP(Google Cloud Platform) Startup Payment Features

Clouded Judgement 1.6.23

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. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Follow along to stay up to date!

Cloud

Cloud Azure AWS Underperforming Technical Team

Snow Angels Come Early to Data : Snowflake's Strength Spells Success for Startups

Tom Tunguz

NOVEMBER 28, 2023

" As with many other companies reporting strength in the market, AI & unstructured data workloads are fueling growth. “Yes, we actually saw quite a bit of energy coming from the Azure platform this quarter. Consumption continued to grow in the month of October…Consumption trends have improved.”

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Azure Data Startup

Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

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%. You can see more detail about their net new ARR added each quarter below Azure Growth came in at 27%, and guided to 25-26% growth for Q3. Overall Stats: Overall Median: 6.4x

Cloud

Cloud Azure Cost optimization & reporting AWS

5 Interesting Learnings from DigitalOcean at $500,000,000 in ARR

SaaStr

MARCH 9, 2022

Focusing on smaller developers, in some ways it’s been a bit overshadowed by AWS, Azure, and Google Cloud. But it’s a great case study on how nailing a niche, and staying focused on a core ICP in a huge market, can pay off. So DigitalOcean is the quiet Cloud platform that keeps on growing.

Azure

Azure AWS SMB Cloud

Clouded Judgement 10.28.22

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%. At the same time, Azure came in below expectations. Follow along to stay up to date! Top 5 Median: 15.8x

Cloud

Cloud Azure AWS Cost optimization & reporting

5 Interesting Learnings from Google Cloud at $13 Billion in ARR

SaaStr

FEBRUARY 20, 2021

But are AWS, Azure and Google Cloud just too big for us to learn from? The Cloud Market as Google Cloud defines it has grown at a jaw-dropping rate, from $85B in ’15 to $290B in ’20. Google Cloud continues its march upmarket, competing with Azure. So I think there are some good learnings! million customers.

Cloud

Cloud Azure AWS Scale

The 4 Questions Startups Should Ask Themselves about Building with Generative AI

Tom Tunguz

APRIL 6, 2023

In the cloud, AWS, Azure, & GCP have created about as much market cap as all the top 100 B2B & B2C publics built on cloud (Netflix, ServiceNow, AirBnb, etc). Market : how to compete with incumbents? Layer : application, platform, or infrastructure?

Generative AI

Generative AI AI GCP(Google Cloud Platform) Startup

How Nimble + Azure Revolutionize Relationship Management for Office 365 Teams

Nimble - Sales

MAY 22, 2019

Nimble has migrated its market-leading SaaS CRM from Amazon Web Services (AWS) to Microsoft Azure. The migration enables Nimble to tap into Microsoft’s world-class Azure platform and partner ecosystem to scale.

Azure

Azure Scale AWS Management

Clouded Judgement 10.20.23 - Hyperscaler Q3 Preview

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. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Said another way, the 10Y today is double what it averaged from 2010 to 2020.

Cloud

Cloud Azure AWS Software Review

Clouded Judgement 7.28.23 - Optimization Cycles and Economy Update

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.” Meaning labor markets continue to be strong! AWS reports next week.

Cloud

Cloud Azure AWS GCP(Google Cloud Platform)

Clouded Judgement 4.21.23

Clouded Judgement

APRIL 21, 2023

Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). Let’s double click on Azure. On AWS, in their Q4 earnings call they said AWS was growing “mid teens” in January (down from 20% in Q4). The Q4 ‘22 growth rate was 38% YoY.

Cloud

Cloud Azure AWS GCP(Google Cloud Platform)

Moving ChartMogul to AWS and Kubernetes

Chart Mogul

JANUARY 28, 2022

A few months ago, we retired our last pieces of infrastructure on DigitalOcean, marking our migration to AWS as complete. Our journey was not your regular AWS migration as it involved moving our infrastructure from classic VMs to containers orchestrated by Kubernetes. Ultimately, we decided to go with AWS. Team expertise.

K8S orchestration (Kubernetes)

K8S orchestration (Kubernetes) AWS EKS (Elastic Kubernetes Service) GCP(Google Cloud Platform)

Snowflake, CrowdStike and SumoLogic: “How to Leverage the Cloud Giants to Scale to 100 Million ARR and Beyond”

SaaStr

MARCH 31, 2022

And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. Azure’s marketplace has over 4 million monthly visitors. AWS’s marketplace has seen 1.5 Rico Mallozzi: So marketplaces are fundamentally changing, go to market motions for a lot of enterprise technology companies.

Scale

Scale Marketplace as a Service Cloud SaaS Payments

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

Clouded Judgement

JUNE 9, 2023

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). Their consumption is driven by usage of applications built on top of Mongo.

Trends

Trends Cloud Azure AWS

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

SaaStr

MAY 6, 2022

So the public markets are in tumult. This is just starting to roll through the private markets and is going to make a bumpy rest of the year. Revenue multiples are how much VCs, investors, and ultimately, an IPO and public markets will value each dollar of revenue. And indeed there is today! A Covid Hangover in SaaS stocks.’

SaaS

SaaS Azure Cloud AWS

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

DECEMBER 26, 2022

In this session, she shares insights and trends from research conducted this year that can help software buyers and sellers make smarter decisions about software and the market. . and go-to-market partners, to understand what’s happening in the space. . “G2 Go-to-market Partners released a report using G2 data.

Software Review

Software Review Software Azure Cloud

Are You Getting More Competitive, Or Less Competitive? Hitting the Plan Might Not Be Enough

SaaStr

APRIL 3, 2021

Well, your growth or lack thereof of market share is the #1 sign of potential decay in your product. In a fast-growing market, it’s important to not be quietly left behind just by growing more slowly. You can’t blame it on market changes. Again, they play in the same market. That’s % of marketshare.

Azure

Azure Headcount AWS Education

Gartner: SaaS Spending Will Grow Another 40% in Next 2 Years Alone

SaaStr

APRIL 27, 2021

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. That’s a huge tailwind. This is your time, folks. Go make it happen.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Azure AWS SaaS

When did cloud computing start to become popular?

SaaStr

AUGUST 27, 2019

The markets took a while to catch up. That $200b+ of additional Cloud and SaaS spend fueled 50+ Cloud unicorns and massive growth in AWS, Azure, etc. 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. There were dips in 2016 and otherwise.

Cloud

Cloud Azure AWS Enterprise

Clouded Judgement 8.11.23 - Datadog Consumption Trends

Clouded Judgement

AUGUST 11, 2023

” It’s really important that new business is still healthy, and a sign of overall market health. I think market can look forward 2-3 quarters, but we’re getting tight on that window. The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs).

Cloud

Cloud Trends Azure GCP(Google Cloud Platform)

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

SaaStr

NOVEMBER 14, 2023

What Is A “Consumption” Business In the old days of software, you had a company like Oracle that popularized the perpetual license where customers own the software and vendors own the market. What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model.

Compensation

Compensation Sales Azure AWS

Clouded Judgement 2.3.23

Clouded Judgement

FEBRUARY 3, 2023

I’ll be right sometimes, I’ll be wrong sometimes, but it’s fun to try and make sense of what’s going on in the markets together. Then we had the Fed meeting this week creating a huge move in the software market. Clearly the market tone is getting more dovish. The market was offsides.

Cloud

Cloud Azure AWS Generative AI

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

Clouded Judgement

MARCH 22, 2024

This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. Quick Macro Update We also got an update from the Fed this Wednesday that sent the markets higher. .” Let’s look at consumption revenue - this is also not technically recurring!

AI

AI Revenue Cloud Technical Advisors

Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

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. Most likely Datadog is seeing trends more unique to their own business.

Cloud

Cloud Artificial Intelligence AI GCP(Google Cloud Platform)

The decade software ate the world

Intercom, Inc.

DECEMBER 31, 2019

If anything, this was the decade they collectively became leaders not just of the technology industry, but of industry itself – Apple overtook ExxonMobil as the world’s most valuable company by market cap in August 2011 (that month again), and then became the first trillion-dollar company by market cap in 2018.

Payment Solutions

Payment Solutions Payment Methods Software SaaS Payments

ISVs vs SaaS: What’s the Difference?

Stax

APRIL 18, 2024

Independent Software Vendors (ISVs) and Software-as-a-Service Providers (SaaS) operate within the same market, thus creating a push-and-pull revenue dynamic. Microsoft Azure, Amazon Web Services (AWS), or Salesforce AppExchange). Some use cloud-based solutions to deliver online solutions (e.g.,

Outsourcing Services

Outsourcing Services SaaS Payments Payment Services Payment Methods

Playbook: Scale to $100M+ ARR with a Usage-Based Pricing Model

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. It requires shifts in go-to-market strategy, sales compensation, financial planning, billing, and much more. Then they tell their boss what to buy.

Scale

Scale Pricing Scaling AWS

The Capex Conquest in the Cloud

Bessemer: $1 Trillion in Cloud Market Cap Lost Year-to-Date

Webinars

Trending Sources

Dear SaaStr: What is The Average Ratio of Support Staff to Customer Count in SaaS?

Webinars

Clouded Judgement 10.27.23 - Cloud Giants Report Q3 '23

Cloud-Based Solutions: The Sky Is the Limit for Retail Success

Clouded Judgement 2.2.24 - Cloud Giants Report Q4 '23

How Much Should You Expect Your Startup to Slow in 2022?

Gartner: Software Spend Will Grow 13.8% in 2024, to Over $1 Trillion For The First Time

Predicting Cloud Growth Rates for 2023

Pilot: 57% of Venture Startups Will Need to Raise More In 2024

Google Cloud Anthos now available for AWS, with Azure to follow

A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement 4.28.23

Grey Skies in Cloud Earnings

Founders Today Just Need to Assume the Next Round Never Comes

The Health of Cloud Spending in Mid-2022

The Critical Question Facing Web3 Infrastructure Startups

Clouded Judgement 1.6.23

Snow Angels Come Early to Data : Snowflake's Strength Spells Success for Startups

Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

5 Interesting Learnings from DigitalOcean at $500,000,000 in ARR

Clouded Judgement 10.28.22

5 Interesting Learnings from Google Cloud at $13 Billion in ARR

The 4 Questions Startups Should Ask Themselves about Building with Generative AI

How Nimble + Azure Revolutionize Relationship Management for Office 365 Teams

Clouded Judgement 10.20.23 - Hyperscaler Q3 Preview

Clouded Judgement 7.28.23 - Optimization Cycles and Economy Update

Clouded Judgement 4.21.23

Moving ChartMogul to AWS and Kubernetes

Snowflake, CrowdStike and SumoLogic: “How to Leverage the Cloud Giants to Scale to 100 Million ARR and Beyond”

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

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

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)

Are You Getting More Competitive, Or Less Competitive? Hitting the Plan Might Not Be Enough

Gartner: SaaS Spending Will Grow Another 40% in Next 2 Years Alone

When did cloud computing start to become popular?

Clouded Judgement 8.11.23 - Datadog Consumption Trends

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

Clouded Judgement 2.3.23

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

Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

The decade software ate the world

ISVs vs SaaS: What’s the Difference?

Playbook: Scale to $100M+ ARR with a Usage-Based Pricing Model

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