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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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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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Snow Angels Come Early to Data : Snowflake's Strength Spells Success for Startups

Tom Tunguz

" Here’s another insight : Google’s cloud is more expensive for customers than others : " One of the reasons why GCP is not as big as just so much more expensive for our customers to operate in GCP than it is in AWS and Azure. And as a result, our salespeople are really not inclined to do much in GCP.”

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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?

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Outbound Marketing Fury : Office Hours with Raj Sarkar

Tom Tunguz

He then jooined Google to become the lead product marketing manager on Google Cloud Platform (GCP). Raj started his career as a marketing manager at Cisco focused on the SMB market. Next, he headed marketing at Atlassian for Trello, Confluence, Jira for Business Teams & other products.

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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.

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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.