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Split Sales Team Managing SMB Accounts Into 2 Teams, One on New Business and One on Upsell It’s interesting to see Okta do this a bit later in life than some, but it makes a ton of sense given the current macro environment. AWS alone generated $175m of contract value for Okta, growing 130%.
It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.
And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. AWS’s marketplace has seen 1.5 million subscriptions transacted and Google’s marketplace has seen 3X growth in SaaS sales. Like I said, we run 100% of our platform on AWS, so the fit was great.
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. If we break this down and look at Azure and AWS independently (graphs below), you’ll see how the AWS “swings” were a lot more volatile.
I’m looking at it and I’m like, “Who’s got the Wall Street Journal subscription? Then, we’ll end of the day with me and Stewart Butterfield and obviously Slack is doing well, but Slack also has a massive SMB base and its challenges. We can save companies $100,000 on their AWS bill.
I’m going to skip by my life story, and how I grew up as a small child in India, and how the dusty streets influenced my take on unit economics, and SaaS subscription models. Do not…,” and the reason is no one hardly ever has succeeded in building a big business in SMB. I’m paraphrasing… [laughter].
They did call out sequential growth in Confluent Cloud every quarter this year which was a big positive Still seeing elongated deal cycles and less expansion revenue The Bad AWS: Headwinds Getting Worse Their quarter ended in March, but on the earnings call they called out weakening growth in April.
For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. ” Let’s look at consumption revenue - this is also not technically recurring! It’s probably better described as re-occurring vs recurring.
It Takes Time To Bounce Back Jason was the first investor in RevenueCat , a company that automates mobile subscriptions on your phone. 30% of all mobile apps with a paid subscription use RevenueCat to manage it. You can see the growth on the platform side with Azure, Google, and AWS and how much it’s accelerating in AI.
Companies that do not need to lock customers in with minimum commitments, particularly in the SMB space, use these types of models. For example, technology companies like AWS, GCP, and Snowflake offer no contracts for customers interested in using their self-service option or beta-testing the solution. Uncommitted contracts.
With a background that includes leadership roles at AWS, Microsoft, and Lenovo, Fred brings a wealth of experience in building high-performing teams and driving revenue growth. And I know you’ve had some great experience, particularly while you were at AWS, running different partner sales, channel sales. They cannot resell.
I saw we had the opportunity to do that in London and to do something that will be new for Facebook, in the same way that AWS was a new business model and product line for Amazon and a bet that paid off very well. We are going from having an enterprise business to having a mid-market business to investing in an SMB business.
Disappearing photos however was not a good fit for either of those models, and likely best lent itself to subscriptions and virtual goods, both largely unproven at consumer internet scale. Canva was more of a single player and SMB tool. Last, but not least, let’s look at a consumer subscription example.
Cassie spent the first pre-SaaS chapter of her tech career in growth roles in subscription and marketplace businesses (TheLadders.com, GLG). It took me a long time to admit to myself that I don’t enjoy transactional SMB sales. Cassie is a graduate of Duke University and holds an MBA from the Tuck School of Business at Dartmouth.
” Head of AI Dialpad: “How to Build AI at Scale” GTM/ B2B Speakers: CEO HubSpot Yamini Rangan : “Going More Multiproduct, Going More AI, and Going More SMB and More Enterprise” CEO Dropbox Drew Houston : “DropBox’s Third Act: AI & Content Intelligence” CEO Calendly Tope Awotona “Open AMA and (..)
Each segment, whether SMB, mid-market, or enterprise, has its own nuances, but they all share a familiar core. With a background that includes leadership roles at AWS, Microsoft, and Lenovo, Fred brings a wealth of experience in building high-performing teams and driving revenue growth. Culture becomes the engine.
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