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

Clouded Judgement

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 183
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Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

Clouded Judgement

Model providers (OpenAI, Anthropic, etc as companies start building out AI). 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.

Cloud 183
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Playbook: Scale to $100M+ ARR with a Usage-Based Pricing Model

OpenView Labs

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. Though it was pioneered in the infrastructure layer (think: AWS and Azure), it’s becoming increasingly popular for API-based products and application software.

Scale 98
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Clouded Judgement 3.31.23

Clouded Judgement

How Will AI Effect Software Business Models? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software business models. There are two main topics I’ve been pondering lately: Margins.

Cloud 130
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State of the Cloud 2019: Europa Edition with Alex Ferrara, Bessemer Venture Partners (Video + Transcript)

SaaStr

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

Cloud 100
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The decade software ate the world

Intercom, Inc.

The wave of SaaS companies that built themselves on the likes of AWS and Azure have reinforced the pre-eminence of cloud computing. What was perhaps less predictable was the ensuing prevalence of the subscription-based business model.

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Facebook Workplace’s Julien Codorniou on turning companies into communities

Intercom, Inc.

As Workplace’s global head, Julien Codorniou has been spending the past few years exploring how to make his department align with Facebook’s mission while executing an entirely different business model that relies on companies promoting community within their workforce. Workplace is about connecting people.

Scale 151