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Clouded Judgement 4.26.24 - Azure Gives Positive Infra Software Preview

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Azure Report - Cloud Infra Looks Good! For software, all eyes were on Azure - which grew 31% YoY (ahead of expectations closer to 29%). So the overall Azure quarterly revenue figure is already not entirely spot on.

Azure 177
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Gartner: Software Spend Will Grow 13.8% in 2024, to Over $1 Trillion For The First Time

SaaStr

If you’re selling software to SMB merchants and outside of tech like Shopify and Toast and Monday , things are pretty, pretty good, if in some ways still harder than before. If you’re selling sales and marketing software, like Zoominfo, it can seem a lot tougher than 12-18 months ago. With some big caveats.

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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

Is Software Rebounding? 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. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs.

Cloud 177
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5 Interesting Learnings from Microsoft at $200 Billion in ARR

SaaStr

So when we started SaaStr waaay back in 2012, I never would have thought of profiling Microsoft and its old fashioned desktop software. But fast forward to today, and Microsoft truly is a Cloud and SaaS company, with Azure and LinkedIn its fastest growing business units! Software is and should be very profitable at scale. #4.

Azure 287
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Standard Issue AI

Tom Tunguz

Calendar Quarter Azure OpenAI Orgs, k CoPilot Users, m Power Platform Orgs, k 1/1/24 53 1.3 “Cosmos DB is the go-to database to build AI-powered apps at any scale… Cosmos DB data transactions increased 42% year-over-year.” Many companies are moving in this direction. 230 10/1/23 18 1 126 7/1/23 11 63 4/1/23 2.5

AI 196
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Pilot: 57% of Venture Startups Will Need to Raise More In 2024

SaaStr

They typically give them just enough to see if it will work, and the startup grows and scales to the next stage. Shopify , Datadog, Crowdstrike , Google Cloud-Azure-AWS, Snowflake , etc. In fact, Gartner predicts enterprise software spend will cross $1 Trillion Dollars (!) Gartner: Software Spend Will Grow 13.8%

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Clouded Judgement 10.27.23 - Cloud Giants Report Q3 '23

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. You can see some quotes from Azure / AWS in my Q2 recap , and pasted below. I believe one of the bigger reasons software has held up despite the run up in the 10Y to 5% is the expectation for re-acceleration (ie numbers / forecasts going up).