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

SaaStr

DECEMBER 20, 2023

Canva: – Almost $2B ARR – Growing 40%+ – Profitable And … 4,000 employees That's about $500k in revenue per employee That's where software really makes money — Jason ✨Be Kind✨ Lemkin  ?? 4,000 Employees, So About $500,000 in Revenue Per Employee That’s very efficient.

AWS 259

AWS B2C AI Scaling 259

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.

Software Review 224

Software Review Outsourcing Services Software Outsourced Development 224

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. They grew 16%!!

Cloud 130

Cloud Azure AWS AI Search 130

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

OCTOBER 27, 2022

I’m watching public company earnings to identify early weaknesses in the software market. 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. Public software multiples - 4.9x Microsoft Azure.

Cloud 228

Cloud GCP(Google Cloud Platform) Azure AWS 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? ARR now really means revenue with 100%+ Net Revenue Retention. 50% revenue from software (recurring), 50% from payments (not-recurring). .

Merchant Services 359

Merchant Services SaaS Payments Payment Solutions Payment Services 359

Clouded Judgement

AUGUST 4, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. ” 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%. Revenue multiples are a shorthand valuation framework. Follow along to stay up to date!

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

SaaStr

MAY 16, 2022

So follow AWS, Azure and Google Cloud. Let’s look a whole level up to the real canaries-in-the-coalmine: AWS, Azure and Google Cloud. And AWS grew 37% at a $74B run-rate , down a bit from 39% the prior quarter but still adding an insane amount of new revenue. If they stumble, we’re in for a rough patch.

Cloud 252

Cloud Azure AWS Engineering 252

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

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

Baremetrics

OCTOBER 31, 2021

Have a plan Decide how much DevOps you want in your development Talk to who you’re going to switch to first Make sure you have the right team in place Brace for transition period costs Plan for higher Cost of Revenue. Plan for higher Cost of Revenue. Have a plan. The first mistake we made was taking the brute force approach.

AWS 115

AWS DevOps as a Service Underperforming Technical Team Development Team Review 115

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%. Follow along to stay up to date!

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

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 227

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions 227

Tom Tunguz

OCTOBER 22, 2022

They will manage their own servers to reduce the $3m annual AWS bill by 60%. I wouldn’t be surprised if private equity held software companies adopt this practice to generate extra income in the next few years to offset some of this era’s greater interest expenses on debt.

Sales Hiring 239

Sales Hiring Cloud AWS Sales 239

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

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

SaaStr

DECEMBER 7, 2020

3. “Atlassian and AWS Say: Maybe Worry a Little Bit. Atlassian and AWS, two of the greats, may hold a clue: Atlassian and AWS Say: “Maybe Worry a Little Bit” 4. “A Framework For Your First SaaS Sales Comp Plan” A SaaStr Classic, still going strong in 2020. Even If It Isn’t Revenue.”

Venture Capital 324

Venture Capital Sales Hiring AWS Cloud 324

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

SaaStr

MAY 31, 2023

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. AWS is seeing this, and so is Snowflake. Not none, just less.

Headcount 205

Headcount Scale Sales Hiring AWS 205

Tom Tunguz

JULY 26, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Google’s growth rate fell to 35%, a 29% decline from the trailing 4 quarter average of 49% annual revenue growth. This week Microsoft, Google/ Alphabet, & Amazon report their figures. Microsoft Azure. Why do these results diverge?

GCP(Google Cloud Platform) 193

GCP(Google Cloud Platform) Cloud Azure AWS 193

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.

GCP(Google Cloud Platform) 143

GCP(Google Cloud Platform) Azure Data Startup 143

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 100

Payments SaaS Payments Payment Solutions Payment Services 100

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) 195

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 195

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

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. Top 5 Median: 15.6x

Trends 130

Trends Cloud Azure AWS 130

Tom Tunguz

NOVEMBER 28, 2017

How quickly do the fastest growing software companies build their teams? Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history.

Headcount 168

Headcount Scaling Software Business 168

SaaStr

MAY 6, 2022

Ultimately — revenue multiples. Update on cloud software multiples, charted alongside the 10Y and 5 year pre-covid NTM rev multiple average. Revenue multiples are how much VCs, investors, and ultimately, an IPO and public markets will value each dollar of revenue. pic.twitter.com/JNnzizB82v.

SaaS 336

SaaS Azure Cloud AWS 336

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. So what happened?

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

SaaStr

FEBRUARY 22, 2023

It was just a little while ago that Salesforce was doing $1 billion in ARR revenue. Same software, dude. But same software. And true enough … freemium only ended up being 20% of our revenue, at least strictly defined. Because SaaS markets are just continuing to grow. Some solid updates, yes.

Scale 209

Scale Sales Hiring Venture Capital AWS 209

Tom Tunguz

MARCH 8, 2020

The customer success team would like help deploying the software to new customers. By buying Looker, they could offer reporting and analytics to their customers without having to build or maintain the analytics software. Marketplaces: AWS marketplace, Heroku marketplace, Salesforce marketplace. Types of Partnerships.

Scale 319

Scale AWS Consulting Sales Enablement 319

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

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! So what happened?

Cloud 130

Cloud Azure AWS Generative AI 130

SaaStr

DECEMBER 12, 2022

Often, in a way the software itself can’t. I’m sure this team was under pressure this quarter to find revenue. The way this public company did it was — awful. #3. Customer Success has gotten worse over the past few years. Much worse. The best Customer Success teams are still amazing. They are amazing.

Customer Success 251

Customer Success Systems Review AWS Software Review 251

Clouded Judgement

AUGUST 11, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. 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. Follow along to stay up to date! On the surface, it wasn’t good.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 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. Consumption Pricing.

Cloud 130

Cloud Sales Hiring AI Headcount 130

SaaStr

MARCH 31, 2022

And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. AWS’s marketplace has seen 1.5 But also it’s allowed us to get much closer to our provider, I mean, we host and run 100% on AWS, but pull data from everywhere.

Scale 203

Scale Marketplace as a Service Cloud SaaS Payments 203