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

Tom Tunguz

" As with many other companies reporting strength in the market, AI & unstructured data workloads are fueling growth. ” Unstructured data is the growth engine : 17x growth y/y suggests a small number last year, but phenomenal interest. “Over 30% of customers use Snowflake to process unstructured data in October.

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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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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.

AI Search 209
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The Health of Cloud Spending in Mid-2022

Tom Tunguz

Today, Microsoft & Google revealed the health of their infrastructure business units. Microsoft Azure. Google Cloud Platform. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. GCP’s data point is less rosy. Amazon Web Services.

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Signs We've Touched the Bottom

Tom Tunguz

Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. Microsoft’s Azure Open AI customer base grew 4x by count, up from 2500 last quarter : We have great momentum across Azure OpenAI Service. The desire for AI is broad.

Azure 204
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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.

Cloud 228
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Thanks to Bee, ChartMogul, Maast, SecureFrame, and StratusGreen for Sponsoring SaaStr Annual 2023!

SaaStr

Maast offers payments, banking, lending and more as features in software provider’s platforms – with one relationship, contract and integration. Which means better customer relationships, more data, and new sources of revenue.

Payments 227