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Predicting Cloud Growth Rates for 2023

Tom Tunguz

Yesterday, Google & Amazon announced earnings which completes the picture. A year ago, AWS, GCP, & Azure averaged 44% annual growth. Google: [GCP] saw slower growth of consumption as customers optimized GCP costs. Google: [We] are pushing Google Cloud to Profitability.

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The Health of Cloud Spending in Mid-2022

Tom Tunguz

Microsoft Azure. Google Cloud Platform. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. 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.

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Grey Skies in Cloud Earnings

Tom Tunguz

This week Microsoft, Google/ Alphabet, & Amazon reported their third quarter figures. Microsoft Azure. Google Cloud Platform. GCP is more volatile, likely driven by the volatility of bigger deals closing on a smaller revenue base. Meanwhile, Azure has declined in a more steady cadence.

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Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

Clouded Judgement

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!

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

Tom Tunguz

AWS’s growth rate is the slowest of the three largest public infrastructure clouds. GCP reported 37% growth & Microsoft 40%. Results from these clouds suggest the market isn’t as soft as the 30% estimate - at least not yet. With about 39% market share, AWS reigns supreme as the largest provider.

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

Tom Tunguz

Improved terms from the cloud service providers have contributed to margin expansion.” “Yes, we actually saw quite a bit of energy coming from the Azure platform this quarter. And as a result, our salespeople are really not inclined to do much in GCP.” And we’re seeing the effects of that.

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Microsoft's Billion Dollar AI Business

Tom Tunguz

Google Cloud Platform (GCP) & Microsoft Azure had strong quarters with about 28% annual revenue growth each. The total customer count for Azure’s OpenAI has grown dramatically. In Azure, we expect revenue growth to be 26% to 27% in constant currency, including roughly 1 point from AI services.

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