AWS, Azure and Pricing

The Capex Conquest in the Cloud

Tom Tunguz

APRIL 30, 2024

Cloud Capex in Q1 AWS $14 billion Azure $14 billion Google Cloud $12 billion These are not one-time investments, but part of a broader trend that started to occur after the introduction of GPT 3 in mid-2020 Amazon was the first to invest significantly. “Moving to AWS.

Cloud

Cloud AWS Azure AI

From $1M to $3B ARR: Databricks CRO Ron Gabrisko on Scaling a Revenue Rocket Ship

SaaStr

FEBRUARY 7, 2025

These early conversations helped shape Databricks product, pricing, and go-to-market strategy. Pricing: Keep It Simple (At First) Databricks started with a simple, consumption-based pricing model. Because thats how their customerswho were used to AWS, Azure, and GCP pricingexpected to buy. Talk to users.

Scale

Scale Sales Hiring Scaling Revenue

Cloud Stocks May Be Down. But the Cloud Remains on Fire. That Matters More.

SaaStr

MAY 16, 2022

So follow AWS, Azure and Google Cloud. Stock prices go up and down, inflation will come down, and interest rates won’t rise forever. Let’s look a whole level up to the real canaries-in-the-coalmine: AWS, Azure and Google Cloud. So much going on in economy right now, from inflation to interest rates.

Cloud

Cloud Azure AWS Engineering

Webinars

How to Achieve High-Accuracy Results When Using LLMs

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

SaaStr

NOVEMBER 6, 2023

On top of that, inflation and price increases are eating into overall IT budgets. Growth in public cloud services (AWS, Azure, Google Cloud, Snowflake, etc.) will grow the fastest at 20.4%, and price increases and increased utilization at existing vendors will consume a significant amount of that growth.

Merchant Services

Merchant Services Azure Software AWS

A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

JUNE 19, 2024

It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). However, it’s still a fun data point to track.

Cloud

Cloud GCP(Google Cloud Platform) Software Azure

The Critical Question Facing Web3 Infrastructure Startups

Tom Tunguz

APRIL 28, 2022

Paying five decentralized providers in five different tokens means managing several wallets and monitoring token prices to hedge expenses. That’s much more work than the automatic credit card payment with AWS. Tokens reward the validators and the stakers powering the decentralized networks.

Payment Solutions

Payment Solutions GCP(Google Cloud Platform) Startup Payment Features

5 Interesting Learnings from Digital Ocean at $700,000,000 in ARR

SaaStr

DECEMBER 27, 2023

Many have used Digital Ocean at the cheaper, simpler version of AWS-Azure-Digital Ocean to get going fast and quickly. Almost All Customers Still from Self-Service This makes sense at these price points. And if so, maybe that’s Digital Ocean. If you haven’t heard of Digital Ocean, ask your developer. Or at least.

Scale

Scale AWS Azure Cloud

The Health of Cloud Spending in Mid-2022

Tom Tunguz

JULY 26, 2022

Microsoft Azure. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. Here are some hypotheses: Google may have greater customer concentration in GCP than Azure. Declines in some large customers’ spend may impact results more than Azure. Google Cloud Platform.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Cloud Azure AWS

Clouded Judgement 2.7.25 - "Group + Triage" AI Systems

Clouded Judgement

FEBRUARY 7, 2025

They each have some of the largest cloud businesses in the world in AWS, Azure and Google Cloud respectively. Overall, there was weakness across the board. Not the best start to cloud software earnings season! Revenue multiples are a shorthand valuation framework.

Systems Review

Systems Review Cloud AI Artificial Intelligence

Clouded Judgement 10.11.24 - Budget Flush

Clouded Judgement

OCTOBER 11, 2024

For software companies, this phenomenon can be a tailwind, as it drives accelerated deal closures and increased sales velocity, sometimes with less price sensitivity from buyers looking to quickly deplete their budgets. As a result, software vendors often see an uptick in revenue and bookings during these periods. Cloudflare is up 17%.

Cloud

Cloud Cost optimization & reporting GCP(Google Cloud Platform) Software Review

Snowflake, CrowdStike and SumoLogic: “How to Leverage the Cloud Giants to Scale to 100 Million ARR and Beyond”

SaaStr

MARCH 31, 2022

And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. Azure’s marketplace has over 4 million monthly visitors. AWS’s marketplace has seen 1.5 Like I said, we run 100% of our platform on AWS, so the fit was great. It was pretty easy to drive that from our side.

Scale

Scale Marketplace as a Service Cloud SaaS Payments

Clouded Judgement 10.27.23 - Cloud Giants Report Q3 '23

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

Cost optimization & reporting Cloud Azure AWS

Clouded Judgement 5.3.24 - Hyperscalers Report Q1 + Early Look at Software Reports

Clouded Judgement

MAY 3, 2024

We now have results from the three hypersclaers (AWS / Azure / GCP). The most notable change in tone was Andy Jassy talking about AWS. Subscribe now Cloud Giants Report Q1 + Early Look at Software Results Q1 earnings seasons has officially kicked off! ” Full quote below: “We're seeing a few trends right now.

Cost optimization & reporting

Cost optimization & reporting Cloud Software AWS

Clouded Judgement 2.2.24 - Cloud Giants Report Q4 '23

Clouded Judgement

FEBRUARY 2, 2024

Amazon on AWS : “…customers are continuing to shift their focus towards driving innovation and bringing new workloads to the cloud. ” 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. Follow along to stay up to date!

Cost optimization & reporting

Cost optimization & reporting Cloud Azure AWS

A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

APRIL 11, 2024

This has all resulted in the median stock price declining 5% YTD. 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. What I’ve shown below is the market-adjusted stock price reaction.

Cloud

Cloud Software Azure AWS

What to Know About the Software Buying Landscape in 2023: What’s Changed, What’s the Same, and What Your Buyers Want with G2 CMO Amanda Malko (Video)

SaaStr

DECEMBER 26, 2022

Companies are witnessing slight pricing pressure, with the average spend per product dipping slightly. . The role of AWS, Azure, and Google Cloud Marketplace is becoming increasingly important. “45% Next year is forecasted to be even more bullish. Another exciting trend is that more products are being bought than ever before.

Software Review

Software Review Software Azure Cloud

Clouded Judgement 10.28.22

Clouded Judgement

OCTOBER 28, 2022

Hyperscalers Report Quarterly Earnings This week we saw AWS (Amazon), GCP (Google) and Azure (Microsoft) report earnings. Overall, it wasn’t pretty… AWS grew 28% when expectations were 30-31%. At the same time, Azure came in below expectations. Follow along to stay up to date!

Cloud

Cloud Azure AWS Cost optimization & reporting

Clouded Judgement 9.27.24 - The Foundation of Foundation Models

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

Cloud GCP(Google Cloud Platform) AWS Azure

Clouded Judgement 4.28.23

Clouded Judgement

APRIL 28, 2023

AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Azure reported on Tuesday and gave us that glimmer of hope. Then AWS appeared to add fuel to that hope before giving us a huge rug pull. Azure came in at 31% (constant currency). They then guided to 26-27% Azure growth in Q2.

Cloud

Cloud Azure AWS AI Search

Clouded Judgement 1.6.23

Clouded Judgement

JANUARY 6, 2023

Cloud Downgrades This week UBS came out with a couple research reports citing concerns in AWS / Azure growth. This brings me back to AWS / Azure downgrades. Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! It’s very tricky to predict.

Cloud

Cloud Azure AWS Underperforming Technical Team

Clouded Judgement 10.20.23 - Hyperscaler Q3 Preview

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. Said another way, the 10Y today is double what it averaged from 2010 to 2020. As you can see, expectations are for growth to stop decelerating this quarter.

Cloud

Cloud Azure AWS Software Review

Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

Clouded Judgement

AUGUST 4, 2023

” These are two quotes about AWS on the Amazon earnings call. AWS grew 16% in Q1, but called out growth in April (first month of Q2) was 11%. You can see more detail about their net new ARR added each quarter below Azure Growth came in at 27%, and guided to 25-26% growth for Q3.

Cloud

Cloud Azure Cost optimization & reporting AWS

Clouded Judgement 8.2.24 - Uncertainty Everywhere

Clouded Judgement

AUGUST 2, 2024

Cloud Giants Report Q2 We also got the Q2 quarters from AWS / Azure / GCP this week! Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Cloud

Cloud Azure GCP(Google Cloud Platform) AWS

Playbook: Scale to $100M+ ARR with a Usage-Based Pricing Model

OpenView Labs

FEBRUARY 9, 2021

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. Usage-based pricing will be the key to successful monetization in the future.”. Usage-based pricing is in all layers of the tech stack.

Scale

Scale Pricing Scaling AWS

Clouded Judgement 7.28.23 - Optimization Cycles and Economy Update

Clouded Judgement

JULY 28, 2023

AI = Data + Compute I’ll continue beating this drum, but we got two great quotes from Azure and AWS this week. ” Then at AWS Summit they called out “Your data is your differentiator when it comes to Generative AI.” AWS reports next week. ” Data is more important than ever!

Cloud

Cloud Azure AWS GCP(Google Cloud Platform)

Clouded Judgement 4.21.23

Clouded Judgement

APRIL 21, 2023

Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). Let’s double click on Azure. On AWS, in their Q4 earnings call they said AWS was growing “mid teens” in January (down from 20% in Q4). The Q4 ‘22 growth rate was 38% YoY.

Cloud

Cloud Azure AWS GCP(Google Cloud Platform)

Clouded Judgement 6.9.23 - Recap of Consumption Trends in Q1 '23

Clouded Judgement

JUNE 9, 2023

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 guided to 26-27% growth in Azure in Q2 (with 1% coming from AI). Their consumption is driven by usage of applications built on top of Mongo.

Trends

Trends Cloud Azure AWS

Clouded Judgement 5.10.24 - Software Weakness Across the Board

Clouded Judgement

MAY 10, 2024

All 3 (AWS, Azure, GCP) saw positive reacceleration Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Cloud

Cloud Software GCP(Google Cloud Platform) Azure

Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

MARCH 22, 2024

This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. But this is changing - many categories are becoming commoditized leading to massive pricing pressure. .” Let’s look at consumption revenue - this is also not technically recurring!

AI

AI Cloud Revenue Technical Advisors

Four Sales Compensation Tactics for Consumption-Based GTM with MongoDB’s SVP of Sales

SaaStr

NOVEMBER 14, 2023

Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. Key Takeaways Consumption-based pricing requires rethinking your organization.

Compensation

Compensation Sales Azure AWS

Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

Clouded Judgement

NOVEMBER 10, 2023

Hyperscalers (AWS, Azure, GCP as companies look for cloud GPUs who aren’t building out their own data centers) Infra (Data layer, orchestration, monitoring, ops, etc) Durable Applications We’ve clearly well underway of the first 3 layers monetizing. Revenue multiples are a shorthand valuation framework.

Cloud

Cloud Artificial Intelligence GCP(Google Cloud Platform) AI

Clouded Judgement 2.3.23

Clouded Judgement

FEBRUARY 3, 2023

There’s a real chance the fed funds rate isn’t going >5%, and a soft landing or delayed recession is certainly possible (maybe even being priced in). If the market thinks the setup for H2 is great, it won’t wait until H2 to “price it in.” But what’s happened since? Lots of deceleration in growth.

Cloud

Cloud Azure AWS Generative AI

Clouded Judgement 5.31.24 - Software Sentiment Crumbles

Clouded Judgement

MAY 31, 2024

This can lead to an airpocket of valuation as companies transition to a different primary valuation metric Outside of the hypserscalers (Azure, AWS, GCP) who have uniquely benefited from AI revenue (mainly selling compute), everyone else has largely struggled. Coming in to Q1 there was broader optimism. Q4’s were generally good!

Cloud

Cloud Software GCP(Google Cloud Platform) AI

SaaS Applications Architecture – The How

Frontegg

JUNE 17, 2021

Beyond the complexity involved in maintaining bad architectural decisions, it also has a direct impact on the services you are offering and pricing flexibility, which are the biggest reasons you are getting started with SaaS in the first place. Just keep in mind that the SaaS route will come at a price, literally. instead of Python.

ECS (Elastic Container Service)

ECS (Elastic Container Service) multi-cloud Kubernetes K8S orchestration (Kubernetes) EKS (Elastic Kubernetes Service)

Clouded Judgement 8.11.23 - Datadog Consumption Trends

Clouded Judgement

AUGUST 11, 2023

If next quarter we get similar commentary that Azure gave us this quarter (“still a couple quarters away” without any specific guidance), then we may see market loose a little patience. The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs).

Cloud

Cloud Trends Azure GCP(Google Cloud Platform)

Forgot the SaaS Gloom and Doom on Social. ‘Just Build’ with SaaStr CEO and Founder Jason Lemkin

SaaStr

JUNE 26, 2024

Maybe endless price increases,” Jason says. You can see the growth on the platform side with Azure, Google, and AWS and how much it’s accelerating in AI. The chart estimates spend will grow 20% to $675B. If we’re adding 20%, where is the money going? To some extent, it’s not clear. A lot of it is moving to versions of AI.

CTO Hire

CTO Hire AI Venture Capital Sales Hiring

SaaS companies quickly replacing subscriptions with usage-based pricing

OPEXEngine

DECEMBER 7, 2021

Dive Brief: Usage-based pricing has grown 32% this year and now 45% of software-as-a-service (SaaS) companies use it all or in part, up from 34%, an OpenView survey shows. Pricing model growth. Usage-based pricing has been growing since at least 2018, when about a quarter of companies were using it, according to OpenView’s data.

Subscription

Subscription Payment Features Pricing Venture Capital

Bulletproof your software with these 12 best application security tools (SAST, DAST, CSPM & WAF)

Audacix

JUNE 9, 2023

Pricing and support: The tools should offer a range of pricing options and provide strong customer support to help you address any issues that may arise. AWS WAF is a great option for software and DevOps teams that are already using AWS services or looking for a scalable and flexible WAF solution.

Software Review

Software Review Software DevOps as a Service AWS

Transforming the Technology Industry: The Power of Usage-Based Pricing

Blulogix

NOVEMBER 8, 2023

Transforming the Technology Industry: The Power of Usage-Based Pricing By BluLogix Team The technology industry is in the midst of a profound transformation. Traditional pricing models, such as fixed subscriptions and one-time purchases, no longer align with the dynamic and ever-evolving nature of this sector.

Technology

Technology Pricing Payment Features Subscription

Unlocking Agility and Scalability: Harnessing the Power of Cloud Computing

Valerian Tech

JULY 18, 2023

Serverless platforms, such as AWS Lambda and Azure Functions, automatically scale resources based on demand, providing agility and cost optimization. Tools like Terraform and AWS CloudFormation enable infrastructure to be defined in code, promoting consistency, repeatability, and scalability across environments.

multi-cloud Kubernetes

multi-cloud Kubernetes K8S orchestration (Kubernetes) Cloud CTO Hire

4 SaaS benefits & advantages: Software as a Service pros & cons

ProfitWell

MAY 15, 2020

Google Compute Engine (GCE), Digital Ocean, and Amazon Web Services (AWS) are all good examples of IaaS. Some PaaS examples include Windows Azure, Google App Engine, and Force.com. With ProfitWell, you can easily use our products to manage your pricing while also managing your billing through a service like Stripe.

SaaS Payments

SaaS Payments Payment Services Payment Solutions Payments

ISVs vs SaaS: What’s the Difference?

Stax

APRIL 18, 2024

How companies price and distribute their solutions affects everything from revenue streams and customer interaction to product development and delivery methods. Microsoft Azure, Amazon Web Services (AWS), or Salesforce AppExchange). SaaS licensing, on the other hand, follows a subscription-based pricing model.

Outsourcing Services

Outsourcing Services SaaS Payments Payment Services Payment Methods

What Are SaaS Products + 22 Successful SaaS Companies to Follow

User Pilot

APRIL 30, 2024

Key examples are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, which provide scalable resources like virtual servers and storage. Most SaaS companies offer a scalable pricing model that adjusts based on usage – ideal for managing budgets effectively. What are the benefits of the SaaS model?

SaaS Payments

SaaS Payments Payment Methods Payment Services Payment Solutions

SaaS Growth: Top Strategies and Trends for SaaS Growth

ProfitWell

SEPTEMBER 10, 2020

Running your own server to handle your customer's valuable data requires a huge investment to match the same level of security and reliability that comes baked into services like Amazon AWS and Microsoft Azure cloud. Pricing Changes. There is currently a surge in usage-based pricing and other creative pricing strategies.

SaaS Payments

SaaS Payments Trends Merchant Services Payments

The Capex Conquest in the Cloud

From $1M to $3B ARR: Databricks CRO Ron Gabrisko on Scaling a Revenue Rocket Ship

Webinars

Trending Sources

Cloud Stocks May Be Down. But the Cloud Remains on Fire. That Matters More.

Webinars

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

A Look Back at Q1 '24 Public Cloud Software Earnings

The Critical Question Facing Web3 Infrastructure Startups

5 Interesting Learnings from Digital Ocean at $700,000,000 in ARR

The Health of Cloud Spending in Mid-2022

Clouded Judgement 2.7.25 - "Group + Triage" AI Systems

Clouded Judgement 10.11.24 - Budget Flush

Snowflake, CrowdStike and SumoLogic: “How to Leverage the Cloud Giants to Scale to 100 Million ARR and Beyond”

Clouded Judgement 10.27.23 - Cloud Giants Report Q3 '23

Clouded Judgement 5.3.24 - Hyperscalers Report Q1 + Early Look at Software Reports

Clouded Judgement 2.2.24 - Cloud Giants Report Q4 '23

A Look Back at Q4 '23 Public Cloud Software Earnings

What to Know About the Software Buying Landscape in 2023: What’s Changed, What’s the Same, and What Your Buyers Want with G2 CMO Amanda Malko (Video)

Clouded Judgement 10.28.22

Clouded Judgement 9.27.24 - The Foundation of Foundation Models

Clouded Judgement 4.28.23

Clouded Judgement 1.6.23

Clouded Judgement 10.20.23 - Hyperscaler Q3 Preview

Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

Clouded Judgement 8.2.24 - Uncertainty Everywhere

Playbook: Scale to $100M+ ARR with a Usage-Based Pricing Model

Clouded Judgement 7.28.23 - Optimization Cycles and Economy Update

Clouded Judgement 4.21.23

Clouded Judgement 6.9.23 - Recap of Consumption Trends in Q1 '23

Clouded Judgement 5.10.24 - Software Weakness Across the Board

Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Four Sales Compensation Tactics for Consumption-Based GTM with MongoDB’s SVP of Sales

Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

Clouded Judgement 2.3.23

Clouded Judgement 5.31.24 - Software Sentiment Crumbles

SaaS Applications Architecture – The How

Clouded Judgement 8.11.23 - Datadog Consumption Trends

Forgot the SaaS Gloom and Doom on Social. ‘Just Build’ with SaaStr CEO and Founder Jason Lemkin

SaaS companies quickly replacing subscriptions with usage-based pricing

Bulletproof your software with these 12 best application security tools (SAST, DAST, CSPM & WAF)

Transforming the Technology Industry: The Power of Usage-Based Pricing

Unlocking Agility and Scalability: Harnessing the Power of Cloud Computing

4 SaaS benefits & advantages: Software as a Service pros & cons

ISVs vs SaaS: What’s the Difference?

What Are SaaS Products + 22 Successful SaaS Companies to Follow

SaaS Growth: Top Strategies and Trends for SaaS Growth

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