Clouded Judgement

OCTOBER 27, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. You can see some quotes from Azure / AWS in my Q2 recap , and pasted below. I believe one of the bigger reasons software has held up despite the run up in the 10Y to 5% is the expectation for re-acceleration (ie numbers / forecasts going up).

Cost optimization & reporting 152

Cost optimization & reporting Cloud Azure AWS 152

Clouded Judgement

MARCH 22, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. Follow along to stay up to date!

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

MAY 16, 2022

But at end of the day, in Cloud, the question is if CIO and related spend will slow down. So follow AWS, Azure and Google Cloud. So there’s much angst and even panic with so many SaaS and Cloud public stocks down 50% or more from their peaks. They are the Cloud. The post Cloud Stocks May Be Down.

Cloud 253

Cloud Azure AWS Engineering 253

Clouded Judgement

AUGUST 4, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Cloud Giants Update “What we're seeing in the quarter is that those cost optimizations, while still going on, are moderating and many maybe behind us in some of our large customers. Follow along to stay up to date!

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

SEPTEMBER 15, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Software Setup Currently, interest rates seem to be the primary driver of software valuations. Revenue multiples are a shorthand valuation framework. Follow along to stay up to date! Top 5 Median: 14.7x

Software Review 130

Software Review Cloud Software AWS 130

Clouded Judgement

APRIL 28, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Then AWS appeared to add fuel to that hope before giving us a huge rug pull. All eyes shifted to the AWS report on Thursday.

Cloud 130

Cloud Azure AWS AI Search 130

Clouded Judgement

OCTOBER 20, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Hyperscaler Preview Next week Amazon, Microsoft and Google report earnings and we’ll see Q3 data for AWS, Azure and Google Cloud. Revenue multiples are a shorthand valuation framework. Follow along to stay up to date!

Cloud 161

Cloud Azure AWS Software Review 161

Tom Tunguz

OCTOBER 27, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Google Cloud Platform. Infrastructure revenue growth averaged 33% this quarter, which is astounding considering we’re talking about businesses that sum to more than $50b of revenue per quarter. Microsoft Azure.

Cloud 224

Cloud GCP(Google Cloud Platform) Azure AWS 224

Clouded Judgement

JANUARY 6, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Cloud Downgrades This week UBS came out with a couple research reports citing concerns in AWS / Azure growth. We know software is impacted from macro - but how bad will it get? This brings me back to AWS / Azure downgrades.

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

Clouded Judgement

APRIL 21, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). On AWS, in their Q4 earnings call they said AWS was growing “mid teens” in January (down from 20% in Q4).

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

OCTOBER 28, 2022

Every week I’ll provide updates on the latest trends in cloud software companies. 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%.

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

Clouded Judgement

FEBRUARY 16, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now January Green Shoots A couple key software players have given us commentary in their Q4 earnings report (quarter ending December) that January (the first month of Q1) saw some green-shoots. Follow along to stay up to date!

Cloud 161

Cloud AWS Metrics Subscription 161

Tom Tunguz

OCTOBER 22, 2022

Last week, David Heinemeier Hansson explained why his company, Basecamp, is leaving the cloud. They will manage their own servers to reduce the $3m annual AWS bill by 60%. Basecamp’s 60% reduction in cloud COGS isn’t anomalous. Downtime implies a loss of revenue, which isn’t factored into the math above.

Sales Hiring 232

Sales Hiring Cloud AWS Sales 232

Clouded Judgement

SEPTEMBER 8, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. ” We saw some green shoots in AWS and a few other consumption names, and overall sentiment seemed more positive. ” We saw some green shoots in AWS and a few other consumption names, and overall sentiment seemed more positive.

Cloud 169

Cloud Software Review AWS Trends 169

Clouded Judgement

NOVEMBER 10, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Datadog Gives Software the All Clear? This week software stocks shot up on Tuesday, largely a result of Datadog’s quarterly earnings. This doesn’t mean the rest of the software universe will follow suite.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Tom Tunguz

JULY 26, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Google Cloud Platform. That suggests the cloud market is quite strong. Google’s growth rate fell to 35%, a 29% decline from the trailing 4 quarter average of 49% annual revenue growth. Microsoft Azure.

GCP(Google Cloud Platform) 176

GCP(Google Cloud Platform) Cloud Azure AWS 176

Clouded Judgement

FEBRUARY 3, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Then we had the Fed meeting this week creating a huge move in the software market. This was part of the big move in software on Wednesday / Thursday? Not much software was owned. Follow along to stay up to date! Market Offsides.

Cloud 130

Cloud Azure AWS Generative AI 130

Clouded Judgement

JULY 28, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. 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.”

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

AUGUST 11, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. The weakness they called out was from larger cloud-native businesses. This is all important because on a relative basis, high growth software is expensive. So on a growth adjusted basis, high growth software is expensive.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

Clouded Judgement

JUNE 9, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Let’s take a look back at the 6 main consumption players in software and how they preformed. Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong.

Trends 130

Trends Cloud Azure AWS 130

Clouded Judgement

MARCH 31, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. 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.

Cloud 130

Cloud Sales Hiring AI Headcount 130

Tom Tunguz

OCTOBER 26, 2023

This drop in prices has grown AWS into a $90b revenue business in 17 years. As storage & compute became less expensive, the economic viability of new use cases became increasingly apparent & developers built software on the cloud. To send a file (an NFT perhaps) to a friend, cost the user $37. for Arbitrum.

Blockchain 224

Blockchain AWS Pricing Innovation 224

SaaStr

MARCH 31, 2022

Jessica Alexander, Senior Director Cloud Technology & OEM Partnerships, Crowdstrike. So for the audience, cloud giants are turbocharging startup sales, and the predominant reason for this is because they’re fundamentally changing IT budgets at the customers that we’re all selling to. Rico Mallozzi, Sr.

Scale 205

Scale Marketplace as a Service Cloud SaaS Payments 205

SaaStr

NOVEMBER 3, 2022

Our mission is to build powerful and secure cloud software for subscription businesses of all sizes, with a strong emphasis on good design and ease of use. Maast offers payments, banking, lending and more as features in software provider’s platforms – with one relationship, contract and integration.

Payments 228

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions 228

SaaStr

APRIL 24, 2021

So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur. Doesn’t ARR stand for Annual Recurring Revenue? But like “Cloud” and “SaaS”, its definitely has evolved. ARR now really means revenue with 100%+ Net Revenue Retention.

Merchant Services 359

Merchant Services SaaS Payments Payment Solutions Payment Services 359

SaaStr

MARCH 16, 2019

The Week in Cloud: A look at the stories in Cloud, SaaS, and business software that we found particularly useful and interesting. Number 2 is still awfully big in the largest market in all of Cloud: [link]. A huge donation, driven by the Cloud: [link]. A huge donation, driven by the Cloud: [link].

Cloud 167

Cloud Systems Review AWS Software Review 167

SaaStr

MAY 31, 2023

So Snowflake is the high flier in Cloud. It’s one of the few still commanding a premium multiple in today’s world, and still growing at tremendous rates: Snowflake is also a barometer of everything in SaaS and Cloud, because a significant amount of its revenue is consumption-based, at least in part.

Headcount 206

Headcount Scale Sales Hiring AWS 206

SaaStr

MAY 6, 2022

Many SaaS and Cloud leaders are down more than 50% from their all-time highs. But Covid did create a lot of artificial demand for Cloud products, especially the lockdown phase. Ultimately — revenue multiples. Update on cloud software multiples, charted alongside the 10Y and 5 year pre-covid NTM rev multiple average.

SaaS 336

SaaS Azure Cloud AWS 336

Intercom, Inc.

FEBRUARY 26, 2018

The same is true in software. In this battle, I’ve found a secret weapon hidden within one of our core engineering strategies, an idea called Run Less Software. As well as being a critical philosophy behind how we build software, it also represents how I feel about the software industry and technology in general.

Outsourcing Services 224

Outsourcing Services Software Review Software Outsourced Development 224

SaaStr

DECEMBER 7, 2020

Many Cloud leaders grew 500% or more this year. 3. “Atlassian and AWS Say: Maybe Worry a Little Bit. ” When will this incredible run for Cloud and SaaS end? What a crazy year for Cloud. “About 70% of SaaS Unicorns Are New Versions of Existing Categories of Software” A personal favorite.

Venture Capital 324

Venture Capital Sales Hiring AWS Cloud 324

Hitenism

NOVEMBER 7, 2016

In 2006, after Amazon Web Services (AWS) helped pioneer what we now call the cloud, product development changed forever. Today, one-third of daily internet users visit websites built on top of AWS. AWS is now an $11.5B run rate business and has made up for an incredible 67% of Amazon’s operating revenue last quarter.

AWS 189

AWS New CTO Scale CTO 189

Tom Tunguz

NOVEMBER 28, 2023

Snowflake announced earnings yesterday, echoing the strength within software companies more broadly & underscoring the shift in enterprise buyer behavior to normal after three quarters of extensive cost cuts. “Q3 product revenue grew 34% year-over-year to reach $698 million. And we’re seeing the effects of that.

GCP(Google Cloud Platform) 133

GCP(Google Cloud Platform) Azure Data Startup 133

SaaStr

OCTOBER 13, 2022

Our mission is to build powerful and secure cloud software for subscription businesses of all sizes, with a strong emphasis on good design and ease of use. You need an efficient way to keep your customers successful, reduce churn, drive adoption, and increase net revenue retention.

GCP(Google Cloud Platform) 196

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 196

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. TL;DR ISVs develop and distribute software products independently and often collaborate with hardware manufacturers and platform providers. Learn More What are ISVs?

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

SaaStr

APRIL 27, 2021

Just how fast is SaaS and Cloud growing? Cloud software spending grew a stunning 23% in 2021, from $270 billion to $330 billion. No matter what, the wave of enterprise spending that fueled 100 SaaS and Cloud unicorns is just getting bigger and strong. One thing we know — Fast. But that’s just the start.

GCP(Google Cloud Platform) 162

GCP(Google Cloud Platform) Azure AWS SaaS 162

Sales Hacker

MARCH 29, 2021

Building the right partner tech stack can dramatically increase the revenue flowing from your partners, even if your partnership team is small. The growing role of partnerships in driving revenue. Keystone Partner Software: the PRM and the CRM. Best-in-Breed Partner Software. Partner acquisition.

Payments 102

Payments SaaS Payments Payment Solutions Payment Services 102

CloudGeometry

MARCH 22, 2022

Part 3: Measurement One of the great breakthroughs of SaaS as a business strategy is in how it puts users and subscribers front and center of software development and keeps them there. Customer-centric software delivery SaaS sets solving customer problems as its north star. It makes no difference to anyone but you.

DevOps as a Service 130

DevOps as a Service Software Delivery Well Architected Framework AWS 130