Tom Tunguz

JANUARY 23, 2023

I’m watching public company earnings to identify early weaknesses in the software market. We saw moderated consumption growth in Azure and lower-than-expected growth [elsewhere]. Just last week, we made Azure OpenAI Service broadly available, and already over 200 customers – from KPMG to Al Jazeera – are using it.

Azure 225

Azure Underperforming Technical Team Machine Learning Artificial Intelligence 225

Tom Tunguz

JULY 25, 2023

I’m watching public company earnings to identify early trends in the software market to inform startups’ plans for 2023. Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. Yesterday, Microsoft & Google announced earnings. The desire for AI is broad.

Azure 182

Azure GCP(Google Cloud Platform) AI Cloud 182

Nimble - Sales

MAY 22, 2019

Nimble has migrated its market-leading SaaS CRM from Amazon Web Services (AWS) to Microsoft Azure. The migration enables Nimble to tap into Microsoft’s world-class Azure platform and partner ecosystem to scale. The post How Nimble + Azure Revolutionize Relationship Management for Office 365 Teams appeared first on Nimble Blog.

Azure 97

Azure Scale AWS Management 97

Clouded Judgement

FEBRUARY 2, 2024

” Microsoft on Azure : “And I think last quarter, we said one, we are going to continue to have these cycles where people will build new workloads. Azure (excluding Azure AI) continued to decelerate, and while AWS did come in ahead of expectations, it wasn’t a blow out. Overall Stats: Overall Median: 6.0x

Cost optimization & reporting 161

Cost optimization & reporting Cloud Azure AWS 161

SaaStr

NOVEMBER 18, 2023

Something that’s both not surprising but also pretty impactful: 57% of venture-backed startups will have to go “back to market” in 2024 to raise more capital. Shopify , Datadog, Crowdstrike , Google Cloud-Azure-AWS, Snowflake , etc. What does Pilot’s latest data say? Many have already raised a bridge round.

Startup 312

Startup Venture Capital Azure AWS 312

SaaStr

NOVEMBER 6, 2023

If you’re selling sales and marketing software, like Zoominfo, it can seem a lot tougher than 12-18 months ago. Growth in public cloud services (AWS, Azure, Google Cloud, Snowflake, etc.) If you’re selling cloud infrastructure, for the most part, growth may be down a smidge but is still strong, e.g., MongoDB.

Merchant Services 263

Merchant Services Azure Software AWS 263

Clouded Judgement

APRIL 11, 2024

The first few months of this year felt like a lot of churning in the market. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. What I’ve shown below is the market-adjusted stock price reaction.

Cloud 169

Cloud Software Azure AWS 169

Tom Tunguz

OCTOBER 27, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Microsoft Azure. At a 7x multiple of revenue, that is another $84b of market cap creation, in theory. Meanwhile, Azure has declined in a more steady cadence. Google Cloud Platform. Amazon Web Services.

Cloud 225

Cloud GCP(Google Cloud Platform) Azure AWS 225

IT World

APRIL 22, 2020

Google Cloud has announced that Anthos — the company’s software for deploying and managing Kubernetes workloads across multiple on-prem and cloud environments — now supports running workloads on rival cloud platform Amazon Web Services (AWS), with Microsoft Azure support still in preview for now.

Azure 69

Azure VP of Engineering AWS Cloud 69

Tom Tunguz

MARCH 2, 2024

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. The rapid growth of AI has fueled a surge of interest in the models themselves.

AI 182

AI Azure ChatGPT Benchmarks 182

Tom Tunguz

JULY 26, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Microsoft Azure. 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 Cloud Platform. Google Cloud Platform. Amazon Web Services.

GCP(Google Cloud Platform) 168

GCP(Google Cloud Platform) Cloud Azure AWS 168

Tom Tunguz

JULY 28, 2022

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

GCP(Google Cloud Platform) 256

GCP(Google Cloud Platform) AWS Startup Azure 256

Clouded Judgement

APRIL 28, 2023

AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Azure reported on Tuesday and gave us that glimmer of hope. Azure : Coming into the quarter, a growth rate that would have satisfied the market would have been ~29%. Azure came in at 31% (constant currency).

Cloud 130

Cloud Azure AWS AI Search 130

Tom Tunguz

NOVEMBER 28, 2023

" As with many other companies reporting strength in the market, AI & unstructured data workloads are fueling growth. “Yes, we actually saw quite a bit of energy coming from the Azure platform this quarter. Consumption continued to grow in the month of October…Consumption trends have improved.”

GCP(Google Cloud Platform) 129

GCP(Google Cloud Platform) Azure Data Startup 129

Tom Tunguz

MAY 31, 2022

As we navigate this bear market, I’m keeping my eye on broader market data points. A broad software buyer index would be the best metric to understand how buyer preferences are changing across the market. Microsoft Azure. Fortunately, it exists. Service Now. Infrastructure. Google Cloud Platform.

Azure 183

Azure Software Startup Cloud 183

Clouded Judgement

JANUARY 6, 2023

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. This was the worst tone that we’ve heard in years from large AWS/Azure partners, a group that usually expresses different shades of optimism about AWS/Azure growth.”

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

SaaStr

FEBRUARY 20, 2021

But are AWS, Azure and Google Cloud just too big for us to learn from? The Cloud Market as Google Cloud defines it has grown at a jaw-dropping rate, from $85B in ’15 to $290B in ’20. Google Cloud continues its march upmarket, competing with Azure. So I think there are some good learnings! million customers.

Cloud 207

Cloud Azure AWS Scale 207

Tom Tunguz

SEPTEMBER 26, 2022

Look no further than the massive companies pushing the public & the private market forward: Snowflake, Databricks, Amazon, Azure, Google Cloud. It’s quite possible that data products have created more market cap than any other subsegment of SaaS in the last five years. 2020 is the decade of data.

Data 211

Data Azure Machine Learning Artificial Intelligence 211

Tom Tunguz

FEBRUARY 2, 2023

I’m watching public company earnings to identify early weaknesses in the software market. A year ago, AWS, GCP, & Azure averaged 44% annual growth. Yesterday, Google & Amazon announced earnings which completes the picture. Growth will continue to slow this year. Today, that figure has dropped to 27%.

GCP(Google Cloud Platform) 257

GCP(Google Cloud Platform) Cloud AWS Sales Hiring 257

SaaStr

NOVEMBER 3, 2022

My summary of Venture Markets in Nov 2022: Series B and later even worse than looks in data: 85%+ of investing here has simply ceased. And while AWS’s growth is down a bit, it’s still at epic levels, Azure isn’t even really down, and Google Cloud is growing faster than ever. But only up to a point.

AWS 311

AWS Venture Capital Azure Cloud 311

SaaStr

MARCH 9, 2022

Focusing on smaller developers, in some ways it’s been a bit overshadowed by AWS, Azure, and Google Cloud. But it’s a great case study on how nailing a niche, and staying focused on a core ICP in a huge market, can pay off. So DigitalOcean is the quiet Cloud platform that keeps on growing.

Azure 212

Azure AWS SMB Cloud 212

Tom Tunguz

APRIL 6, 2023

In the cloud, AWS, Azure, & GCP have created about as much market cap as all the top 100 B2B & B2C publics built on cloud (Netflix, ServiceNow, AirBnb, etc). Market : how to compete with incumbents? Layer : application, platform, or infrastructure? But there are 100 applications compared to 3 infrastructure vendors.

Generative AI 188

Generative AI AI GCP(Google Cloud Platform) Startup 188

Clouded Judgement

JULY 28, 2023

AI = Data + Compute I’ll continue beating this drum, but we got two great quotes from Azure and AWS this week. Meaning labor markets continue to be strong! Overall, the incremental data points this week showed economy is stronger, labor market is tighter, and inflation coming down faster than expected.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

AUGUST 4, 2023

You can see more detail about their net new ARR added each quarter below Azure Growth came in at 27%, and guided to 25-26% growth for Q3. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Then Q2 came in at 12% (must have seen improvements throughout the quarter).

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

OCTOBER 20, 2023

Hyperscaler Preview Next week Amazon, Microsoft and Google report earnings and we’ll see Q3 data for AWS, Azure and Google Cloud. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Said another way, the 10Y today is double what it averaged from 2010 to 2020.

Cloud 161

Cloud Azure AWS Software Review 161

Clouded Judgement

OCTOBER 28, 2022

Hyperscalers Report Quarterly Earnings This week we saw AWS (Amazon), GCP (Google) and Azure (Microsoft) report earnings. At the same time, Azure came in below expectations. Azure called out an incremental $800m of costs expected throughout the year (they just finished their Fiscal Q1). Overall Stats: Overall Median: 5.2x

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

Tom Tunguz

APRIL 28, 2022

Perhaps this dynamic drives consolidation in the market, paralleling the web2 infrastructure hypermarts of AWS, GCP, and Azure. Developers pay for low-latency storage with the same protocol token as they would pay for compute. Third, software engineers decentralize only a subset of the app.

Payment Solutions 241

Payment Solutions GCP(Google Cloud Platform) Startup Payment Features 241

Clouded Judgement

JANUARY 27, 2023

Azure (Microsoft) Quarter The week the first of the cloud giants reported - Azure. Early Look at 2023 Guides Given the Azure weakness reported on Tuesday, all software tumbled Wednesday morning with most names down 5-10%. ” On Thursday, we saw the market lift. Follow along to stay up to date! Top 5 Median: 12.0x

Cloud 141

Cloud Azure Pricing Subscription 141

SaaStr

APRIL 8, 2020

of Microsoft’s market cap. Once Office 365, Azure, etc. Even there, those deals were only so big relative to a $1 Trillion market cap. Because it was just a bet. And maybe even almost an experiment. Buying Wunderlist for $150m sure sounds like a lot to me and you. But the reality is, it’s 0.1% Sometimes, a very big experiment.

Azure 279

Azure Cloud Acquisition Strategy 279

Andreessen Horowitz

APRIL 5, 2024

How does the generative AI market compare to the existing security landscape at the application layer? For example, Microsoft’s Azure-hosted OpenAI has gained significant traction among enterprises, largely due to providing the same control stack as Azure overall.

Generative AI 87

Generative AI AI Enterprise Artificial Intelligence 87

Tom Tunguz

MARCH 28, 2020

I’ve also heard anecdotally that some forms of content marketing are doing well in an era when knowledge workers sit before our laptops all day. ZDNet reported demand for Azure is up 775%. I was reading an article in the NY Times about how we’re all using much more internet than we have been.

Trends 302

Trends Azure Software Review Content Marketing 302

Clouded Judgement

JUNE 9, 2023

Usage on Snowflake is driven by queries run on Snowflake Azure: Neutral Tone With Strength in AI Overall I’d characterize Azure’s quarter as a net positive. They guided to 26-27% growth in Azure in Q2 (with 1% coming from AI). Their consumption is driven by usage of applications built on top of Mongo.

Trends 130

Trends Cloud Azure AWS 130

Clouded Judgement

APRIL 21, 2023

Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). Let’s double click on Azure. The big question I have - everyone knows the market is tough right now. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Tom Tunguz

FEBRUARY 13, 2023

I’m watching public company earnings to identify early trends in the software market to inform startups’ plans for 2023. The surge in pipeline is notable given the uncertainty in the market but the close rates are low & sales cycles slow : another confirmatory data point for startups to plan cautiously in 2023.

Cloud 209

Cloud Azure Headcount Software Review 209

SaaStr

MAY 6, 2022

So the public markets are in tumult. This is just starting to roll through the private markets and is going to make a bumpy rest of the year. Revenue multiples are how much VCs, investors, and ultimately, an IPO and public markets will value each dollar of revenue. And indeed there is today! A Covid Hangover in SaaS stocks.’

SaaS 332

SaaS Azure Cloud AWS 332

Clouded Judgement

AUGUST 11, 2023

” It’s really important that new business is still healthy, and a sign of overall market health. I think market can look forward 2-3 quarters, but we’re getting tight on that window. The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs).

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

SaaStr

DECEMBER 26, 2022

In this session, she shares insights and trends from research conducted this year that can help software buyers and sellers make smarter decisions about software and the market. . and go-to-market partners, to understand what’s happening in the space. . “G2 Go-to-market Partners released a report using G2 data.

Software Review 199

Software Review Software Azure Cloud 199