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Predicting Cloud Growth Rates for 2023

Tom Tunguz

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 So far in the first month of the year, AWS year-over-year revenue growth is in the mid-teens.

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

Tom Tunguz

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. Q/Q Growth Rate Change.

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

Tom Tunguz

" Here’s another insight : Google’s cloud is more expensive for customers than others : " One of the reasons why GCP is not as big as just so much more expensive for our customers to operate in GCP than it is in AWS and Azure.

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The Critical Question Facing Web3 Infrastructure Startups

Tom Tunguz

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. Third, software engineers decentralize only a subset of the app.

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Grey Skies in Cloud Earnings

Tom Tunguz

The kink downwards in the red line at Q-2 shows a sudden deceleration in AWS’ growth rate. GCP is more volatile, likely driven by the volatility of bigger deals closing on a smaller revenue base. The current recession is evident in the charts: growth rates have declined by 25% in six months’ time.

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The Health of Cloud Spending in Mid-2022

Tom Tunguz

Google’s growth rate fell to 35%, a 29% decline from the trailing 4 quarter average of 49% annual revenue growth. GCP’s data point is less rosy. Here are some hypotheses: Google may have greater customer concentration in GCP than Azure. Why do these results diverge?

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Thanks to Bee, ChartMogul, Maast, SecureFrame, and StratusGreen for Sponsoring SaaStr Annual 2023!

SaaStr

Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure. Secureframe helps companies get enterprise ready by streamlining SOC 2, ISO 27001, GDPR, CCPA, PCI DSS and HIPAA compliance.

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