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As Google also reported, usage-based pricing models may weather downturns betterbecause the products they meter grow irrespective of headcount growth, a positive sign for infrastructure. Yesterday, Cloudflare announced earnings. I’m adding Cloudflare to the list of tracked companies for this series.
This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. But this is changing - many categories are becoming commoditized leading to massive pricing pressure. Headcount planning, budgeting, fundraising, etc can often be largely based on a top line plan.
On a much smaller scale, we’ve also started to see some leaders deploying their genAI budget against headcount savings, particularly in customer service. We were surprised that cost wasn’t top of mind, but it reflects the leadership’s current conviction that the excess value created by generative AI will likely far outweigh its price.
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Google Cloud , Azure, and GitLab, all tied directly or indirectly to AI, are seeing massive acceleration. But Google Cloud, Azure, and GitLab are all benefiting and on fire. Everyone is going to have a pricing page, check the box, function app, and feature parity on everything that is AI and B2B, everyone. Is there a bubble?
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