Tom Tunguz

APRIL 30, 2024

Like Microsoft & Google, Amazon’s Web Service business is seeing a surge of growth, up from 13% annual to 17% annual growth (16% when excluding the leap year). Each of these businesses are large enough to justify it. Google and Microsoft would wait another two years to replicate a similar level of investment.

Cloud 311

Cloud AWS Azure AI 311

Tom Tunguz

APRIL 25, 2024

If it wasn’t clear before, AI is the single biggest revenue driver in cloud. Microsoft’s Azure is winning share directly from Amazon. ” Much of the AI spend is at the enterprise, where a 50% reduction in customer support cost or a 75% increase in engineering capacity filters billions to the bottom line.

Azure 213

Azure AI Search Marketing ChatGPT 213

Tom Tunguz

JULY 25, 2023

Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. There are two forces in tension : overall cost reduction efforts by companies & the desire to invest in AI. The desire for AI is broad. The acceleration is really quite broad.

Azure 238

Azure GCP(Google Cloud Platform) AI Cloud 238

Clouded Judgement

JUNE 19, 2024

Q1 earnings season for cloud businesses is now behind us. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up).

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

Tom Tunguz

JANUARY 23, 2023

We saw moderated consumption growth in Azure and lower-than-expected growth [elsewhere]. Segment Expected Growth Productivity 12% Office Commercial 6% Office On-Premise -25% LinkedIn 5% Dynamics 13% Intelligent Cloud 18% Azure 26% Server -3% Services -3% 2. At some point, the optimizations will end.

Azure 256

Azure Underperforming Technical Team Artificial Intelligence Machine Learning 256

SaaStr

FEBRUARY 7, 2025

Ron explains: “Wehire mostly technical backgrounds, but as our customers get larger and larger, you start to get global account managers, and they’re going to have much more business strategic account management experience. Because thats how their customerswho were used to AWS, Azure, and GCP pricingexpected to buy.

Scale 183

Scale Sales Hiring Scaling Revenue 183

SaaStr

JULY 19, 2022

Drift® , the Conversation Cloud company, helps businesses connect with people at the right time, in the right place with the right conversation. Using the Drift Conversation Cloud, businesses can personalize experiences that lead to more quality pipeline, revenue and lifelong customers. Usually, it takes a paradigm shift to grow.

GCP(Google Cloud Platform) 265

GCP(Google Cloud Platform) Artificial Intelligence Enterprise readiness Azure 265

Clouded Judgement

MARCH 22, 2024

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 190

AI Cloud Revenue Technical Advisors 190

Tom Tunguz

FEBRUARY 13, 2023

But it may also suggest that many resellers with large sales teams looking to sustain their transactional businesses are able to drive additional software bookings. AI companies] have a real use case for the cloud which is somewhat different than what we see from some other companies. Yesterday, Cloudflare announced earnings.

Cloud 243

Cloud Azure Headcount Software Review 243

Clouded Judgement

OCTOBER 27, 2023

Subscribe now Cloud Giants Report Q3 ‘23 Not a great signal for software this week from the Cloud Giants (AWS, Azure and Google Cloud)…After Q2 (3 months ago), the tone from the Cloud Giants around optimizations was largely: optimizations have started to ease, and net new workloads have picked up. Staggering scale already.

Cost optimization & reporting 157

Cost optimization & reporting Cloud Azure AWS 157

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. So what you're seeing is much more of that continuous cycles by customers, both when it comes to AI or whether it comes to the traditional workloads.”

Cost optimization & reporting 167

Cost optimization & reporting Cloud Azure AWS 167

Andreessen Horowitz

MARCH 21, 2024

Generative AI took the consumer landscape by storm in 2023, reaching over a billion dollars of consumer spend 1 in record time. Over the past couple months, we’ve spoken with dozens of Fortune 500 and top enterprise leaders , 2 and surveyed 70 more, to understand how they’re using, buying, and budgeting for generative AI.

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Generative AI Enterprise AI Artificial Intelligence 145

IT World

FEBRUARY 8, 2023

Microsoft has gone all in on artificial intelligence (AI), pouring $10 billion in the OpenAI startup — and that’s just the opening gambit. AI will reap many billions in revenue for the company, particularly its cloud business. Yesterday it unveiled plans to add AI to Bing in a bid to take market share from Google.

AI 96

AI Artificial Intelligence Azure Cloud 96

Clouded Judgement

AUGUST 2, 2024

Today, the market seems a lot more worried about business fundamentals / growth. Cloud Giants Report Q2 We also got the Q2 quarters from AWS / Azure / GCP this week! It shows the number of months it takes for a SaaS business to payback their fully burdened CAC on a gross profit basis. However, rates are just one variable.

Cloud 157

Cloud Azure GCP(Google Cloud Platform) AWS 157

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. These are thought to be the early AI winners, largely due to all of the compute they’re selling to power GenAI applications. Revenue multiples are a shorthand valuation framework.

Cloud 167

Cloud Azure AWS Software Review 167

Tom Tunguz

JANUARY 29, 2025

Microsoft announced earnings yesterday & the data painted a brilliant picture for the future of AI. Greater than 30% annual growth in back-to-back quarters is sensational for a $100b run rate business. The AI subset is on a $13b run rate, more than double last year. Azure other cloud services revenue grew 31%.

Azure 100

Azure Software Review AI Engineering 100

Clouded Judgement

APRIL 11, 2024

Q4 earnings season for cloud businesses is now behind us. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., Who are the real AI winners. net retention and CAC payback). Is Software Rebounding?

Cloud 184

Cloud Software Azure AWS 184

Andreessen Horowitz

SEPTEMBER 25, 2023

This conversation is part of our AI Revolution series, which features some of the most impactful builders in the field of AI discussing and debating where we are, where we’re going, and the big open questions in AI. Find more content from our AI Revolution series on www.a16z.com/AIRevolution.

AI 98

AI Azure New CTO Software Development 98

Clouded Judgement

NOVEMBER 10, 2023

When I think about the monetization of AI (and which “layers” monetize first) I’ve always thought it would follow the below order, with each layer lagging the one that comes before it. Model providers (OpenAI, Anthropic, etc as companies start building out AI). 2024 will be the year of AI applications!

Cloud 190

Cloud Artificial Intelligence GCP(Google Cloud Platform) AI 190

Clouded Judgement

MAY 31, 2024

And the promise of the software business model is as companies mature and go out of growth mode the profits will show up. AI Investment Cycle Picking Up - Companies are (rightfully) investing in building out their capabilities around AI. Coming in to Q1 there was broader optimism. Q4’s were generally good!

Cloud 184

Cloud Software GCP(Google Cloud Platform) AI 184

Clouded Judgement

APRIL 28, 2023

AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. When the tailwinds of new business start to overcome the headwinds of optimization (or when headwind of optimization becomes a tailwind of net expansion). Azure reported on Tuesday and gave us that glimmer of hope. Follow along to stay up to date!

Cloud 130

Cloud Azure AWS AI Search 130

Clouded Judgement

SEPTEMBER 27, 2024

Subscribe now Foundation Models Are to AI what S3 was to the Public Cloud Many people look at 2006 as the birth of the public cloud - the year Amazon launched AWS. Microsoft launched Azure in 2010, and Google launched GCP to the public in 2011 (they launched a preview of Google App Engine in 2008, but made it publicly available in 2011).

Cloud 176

Cloud GCP(Google Cloud Platform) AWS Azure 176

Andreessen Horowitz

SEPTEMBER 25, 2023

This conversation is part of our AI Revolution series, which features some of the most impactful builders in the field of AI discussing and debating where we are, where we’re going, and the big open questions in AI. Find more content from our AI Revolution series on www.a16z.com/AIRevolution. Is it the business line?

Enterprise 110

Enterprise AI Artificial Intelligence Generative AI 110

Clouded Judgement

MAY 10, 2024

So far - you’re either tied to AI tailwinds, or it’s rough out there. And in the public universe, it’s really only been the hyperscalers who’ve benefited from AI. It shows the number of months it takes for a SaaS business to payback their fully burdened CAC on a gross profit basis.

Cloud 167

Cloud Software GCP(Google Cloud Platform) Azure 167

IT World

JANUARY 25, 2023

Microsoft on Tuesday said it expects the growth across its cloud business to temper down through 2023 as enterprises brace for economic headwinds. Microsoft said it expects its third quarter cloud gross margin to decrease by one percentage point, driven by Azure. The Windows-maker reported 29% growth in total cloud revenue to $21.5

Cloud 96

Cloud Azure AI Enterprise 96

Clouded Judgement

JUNE 9, 2023

Very healthy new business (new customer) acquisition. 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’re also seeing some real strength in AI Services.

Trends 130

Trends Cloud Azure AWS 130

Clouded Judgement

JULY 28, 2023

Subscribe now Busy week! AI = Data + Compute I’ll continue beating this drum, but we got two great quotes from Azure and AWS this week. Satya at Microsoft said “Every AI app starts with data and having a comprehensive data and analytics platform is more important than ever.” AWS reports next week.

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Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

AUGUST 11, 2023

The weakness they called out was from larger cloud-native businesses. However, they called out strength when looking at new business (ie net new customer signups). ” It’s really important that new business is still healthy, and a sign of overall market health. However, it’s not showing up in the data yet.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

Andreessen Horowitz

MAY 7, 2024

As more workloads and data move to the cloud and generative AI takes over the enterprise , cybersecurity is more critical today than ever. Wiz is also poised to benefit from another paradigm shift that may be even more massive than the move to the cloud: AI.

Investment 118

Investment Cybersecurity Azure Cloud 118

Neil Patel

JANUARY 25, 2021

The thing about data is it helps you make better business decisions. Can they actually help you achieve your business goals? To make sure you make the right decision, we’ve compiled a list of the best data analysis tools available that can help your business now as well as in the future. Which one is worth your money?

Data Analysis 128

Data Analysis Software Data Scale 128

Sales Hacker

APRIL 1, 2025

Before that, Hayden was Corporate Vice President at Microsoft, leading Global Business Applications (Microsoft Dynamics 365) for six years. You’ve been a busy man. before that was the corporate Vice President at Microsoft leading global business applications, specifically around Microsoft Dynamics.

Scale 64

Scale VP of Engineering Outsourcing Services Enterprise 64

User Pilot

MAY 30, 2023

How to select a CDP for your business? The CDP market is a busy, complex place – and that makes it tricky to choose the right platform. Define business goals and use cases for choosing a CDP Without a goal, you can’t score. It will depend on your specific business context (i.e., This costs $120 a month.

Azure 98

Azure Government Marketplace as a Service Pricing 98

Clouded Judgement

FEBRUARY 3, 2023

We have companies like BuzzFeed and C3 making loose announcements about how they will incorporate generative AI into their business, sending their stocks up 50-100%+. In the short term, enjoy the ride as the chase continues 😊 Kind of related to all of this - we now have seen the Q4’s from AWS, Azure and Google Cloud.

Cloud 130

Cloud Azure AWS Generative AI 130

Sales Hacker

AUGUST 9, 2021

Companies receiving large investments in early stages are typically going into hyper-growth mode and focusing on taking their business to the next level, including growing their employee base, hiring new leadership, buying new software and tools, and expanding into new markets. Tip: Here’s the list of funding rounds for 2021 thus far.

Cybersecurity 123

Cybersecurity Sales Hiring Scale Cloud 123

Clouded Judgement

SEPTEMBER 19, 2023

The rise of foundation models and generative AI only furthers this trend. But this isn’t another post about AI, it’s about the future of data infrastructure. As Frank Slootman (Snowflake CEO) said, “Enterprises are also realizing that they cannot have an AI strategy without a data strategy to base it on.”

Data 130

Data Government Scale GCP(Google Cloud Platform) 130

OpenView Labs

FEBRUARY 9, 2021

While we aren’t going 100% usage-based overnight, if you look at some of the mega-trends in software—things like automation, AI, and APIs—the value of a product normally doesn’t scale with more folks logging in. Investors especially love how the usage-based pricing model pairs with the land-and-expand business model.

Scale 98

Scale Pricing Scaling AWS 98

User Pilot

JULY 18, 2023

TL;DR Product strategy tools assist product teams in defining, creating, and executing product strategies aligned with business objectives and user needs. This allows teams to make better strategic decisions and align their efforts with the overall business objectives. user/month Business – $24.99/user/month

Software Review 98

Software Review Software Management Azure 98