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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.

Cloud 261
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How Much Should You Expect Your Startup to Slow in 2022?

Tom Tunguz

GCP reported 37% growth & Microsoft 40%. With about 39% market share, AWS reigns supreme as the largest provider. Larger businesses face more daunting challenges sustaining higher growth rates, so AWS numbers are expected. Q/Q Growth Rate Change. All three businesses reported a decline in their growth rates.

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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. Why do these results diverge?

Cloud 174
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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 current recession is evident in the charts: growth rates have declined by 25% in six months’ time. The kink downwards in the red line at Q-2 shows a sudden deceleration in AWS’ growth rate.

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

SaaStr

Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure. Secureframe helps companies get enterprise ready by streamlining SOC 2, ISO 27001, GDPR, CCPA, PCI DSS and HIPAA compliance.

Payments 234
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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). The PC increased GDP by 0.006%, according to NBER That alone should turn heads.

Startup 192
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The Critical Question Facing Web3 Infrastructure Startups

Tom Tunguz

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.