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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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The Health of Cloud Spending in Mid-2022

Tom Tunguz

Google’s growth rate fell to 35%, a 29% decline from the trailing 4 quarter average of 49% annual revenue growth. GCP’s data point is less rosy. Here are some hypotheses: Google may have greater customer concentration in GCP than Azure. Regardless, Amazon’s data will break the tie Thursday.

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Grey Skies in Cloud Earnings

Tom Tunguz

GCP is more volatile, likely driven by the volatility of bigger deals closing on a smaller revenue base. The data suggests a broader slowdown in software spending as these companies are indices of software buyers’ behavior. The kink downwards in the red line at Q-2 shows a sudden deceleration in AWS’ growth rate.

Cloud 225
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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 208
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The 4 Questions Startups Should Ask Themselves about Building with Generative AI

Tom Tunguz

Layer : application, platform, or infrastructure? 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). Access to proprietary data provides a moat. But there are 100 applications compared to 3 infrastructure vendors.

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Microsoft's Billion Dollar AI Business

Tom Tunguz

Yesterday, Microsoft & Google announced earnings. Google Cloud Platform (GCP) & Microsoft Azure had strong quarters with about 28% annual revenue growth each. It’s not unlikely Azure’s AI products could achieve a multi-billion dollar run rate by the end of the year.

AI Search 187