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AI Reaccelerating Cloud Growth

Tom Tunguz

Yesterday, both Google and Microsoft announced their earnings for their cloud businesses. I’ve been tracking the growth rates of these companies and product lines for the last 18 months to develop a broad gauge of enterprise buying patterns after the downturn. They’ve crossed the mark 2 years early.

AI Search 299
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Clouded Judgement 1.6.23

Clouded Judgement

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. This brings me back to AWS / Azure downgrades. Subscribe now Share Clouded Judgement Leave a comment

Cloud 130
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Thanks to Unit, Everstage, Aiven, Zip, and Mission Cloud for Sponsoring SaaStr Annual 2022!

SaaStr

Aiven provides managed open source data technologies on all major clouds. With Aiven, developers can do what they do best: create applications. Meanwhile, we do what we do best; manage cloud data infrastructure. The post Thanks to Unit, Everstage, Aiven, Zip, and Mission Cloud for Sponsoring SaaStr Annual 2022!

Cloud 207
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What Happens When AI Performance Asymptotes?

Tom Tunguz

But pretty quickly, the infrastructure layer should commoditize, just as it did in the cloud where three vendors command 65% market share : Amazon Web Services, Azure, & Google Cloud Platform. 2 1 MMLU measures 57 different tasks including math, history, computer science & other topics.

AI 198
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Microsoft as a Mirror - What We Can Expect for SaaS in 2023

Tom Tunguz

We saw moderated consumption growth in Azure and lower-than-expected growth [elsewhere]. Segment Expected Growth Productivity 12% Office Commercial 6% Office On-Premise -25% LinkedIn 5% Dynamics 13% Intelligent Cloud 18% Azure 26% Server -3% Services -3% 2. At some point, the optimizations will end.

Azure 246
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Signs We've Touched the Bottom

Tom Tunguz

At last, we see a change in slope in the annual growth rates of the cloud services. Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. The cloud migration is about halfway as percentage of GDP. The desire for AI is broad. The acceleration is really quite broad.

Azure 204
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Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now OpenAI Updates OpenAI had their big developer day this week, and I wanted to call out two key announcements (and trends): increasing context windows and decreasing costs. Subscribe now Share Clouded Judgement Leave a comment

Cloud 183