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Subscribe now Azure Report - Cloud Infra Looks Good! For software, all eyes were on Azure - which grew 31% YoY (ahead of expectations closer to 29%). Azure doesn’t disclose exact Azure quarterly revenue (they disclose growth rate in absolute terms and in constant currency), but there are good estimations.
But fast forward to today, and Microsoft truly is a Cloud and SaaS company, with Azure and LinkedIn its fastest growing business units! Azure and other cloud services grew a record 40% and the total Microsoft Cloud grew to a $90 Billion run-rate. Azure still growing a stunning 40% year-over-year, 46% including all cloud services.
“Because of our overall differentiation, more than 18,000 organizations now use Azure OpenAI service, including new-to-Azure customers.” ” “Higher-than-expected AI consumption contributed to revenue growth in Azure.”
Some Microsoft customers were unable to access the company’s Azure and Microsoft 365 services on Thursday due to an issue with Microsoft’s geolocation services. Just after 12 p.m.
With technology giants like Google, AWS, and Azure leading the charge, the true value of the cloud extends far beyond cost savings. In a rapidly evolving industry, the shift from traditional on-premise systems to cloud-based solutions has become crucial for retail success.
There are so many mixed signals: Unicorn product is up 2x over last year, but layoffs continue AI spend is fast and furious, with Google Cloud, Microsoft Azure, etc. So is it a downturn in SaaS or Cloud — or not? seeing record acceleration in growth.
So follow AWS, Azure and Google Cloud. Let’s look a whole level up to the real canaries-in-the-coalmine: AWS, Azure and Google Cloud. And Gartner is still predicted SaaS purchase rates will accelerate in 2023 : AWS, Azure and Google Cloud say Yes. So much going on in economy right now, from inflation to interest rates.
At the same time, the leaders in Cloud (AWS, Azure, Google Cloud) are growing a stunning 40%. And the number of public SaaS and Cloud decacorns has fallen from 50 to 17. This puts a lot of pressure on all the private unicorns out there: We did a deeper dive on decacorns here.
Second, AWS, Azure and Google Cloud all grew nicely, and are still growing like a weed — but the growth rate slowed. AWS and Microsoft Azure all reported more customers scrutinizing spend and working to manage their bills more carefully. But it wasn’t all roses this week in the industry leaders. Perhaps as it should be.
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.
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).
Nimble has migrated its market-leading SaaS CRM from Amazon Web Services (AWS) to Microsoft Azure. The migration enables Nimble to tap into Microsoft’s world-class Azure platform and partner ecosystem to scale. The post How Nimble + Azure Revolutionize Relationship Management for Office 365 Teams appeared first on Nimble Blog.
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.
And AI is obviously on fire, pulling up AWS, Google Cloud, Azure, etc. SaaS outside of classic “B2B’ is often holding up well. Klaviyo, Toast, etc. just had very strong quarters. More B2B2C there. Security remains on fire overall as well. But classic B2B SaaS is definitely in many cases seeing tougher times.
Google Cloud Platform (GCP) & Microsoft Azure had strong quarters with about 28% annual revenue growth each. The total customer count for Azure’s OpenAI has grown dramatically. From Coursera and Grammarly to Mercedes-Benz and Shell, we now have more than 2,500 Azure OpenAI service customers, up 10x quarter-over-quarter.
Amazon’s S3 stores and Azure’s data stores provide the infrastructure for teams to maintain and control data. Amazon S3 GM Kevin Miller and Microsoft VP PM of Azure Storage will share the future of cloud storage.
And broader Cloud players had great years too, from MongoDB to Cloudflare to Azure, if not quite as crazy as at the peak of 2021. Shopify, Canva, Monday and tons of other SaaS leaders less focused on tech and startups had big years.
Microsoft’s Azure is winning share directly from Amazon. “The number of $100 million-plus Azure deals increased over 80% year-over-year, while the number of $10 million-plus deals more than doubled. " The rest of Azure is still growing in a nice clip of 24% annually. “We now have 1.8 “We now have 1.8
ZDNet reported demand for Azure is up 775%. The difference in query volumes might be due to a similar phenomenon to Slack because of Microsoft’s Teams product. But it also might be tied to massive loads on their infrastructure.
Once Office 365, Azure, etc. In 2015, Microsoft wanted to help accelerate its SaaS / Cloud strategy and made a bunch of bets. They didn’t all have to work out. And in the end, have too many products is a distraction. You have to eventually close one down if it’s not a winner.
Larger businesses face more daunting challenges sustaining higher growth rates, so AWS numbers are expected. GCP reported 37% growth & Microsoft 40%. Q/Q Growth Rate Change. All three businesses reported a decline in their growth rates. On average, these business units recorded a 21% decline in growth rate.
Microsoft Azure. Meanwhile, Azure has declined in a more steady cadence. I’m watching public company earnings to identify early weaknesses in the software market. This week Microsoft, Google/ Alphabet, & Amazon reported their third quarter figures. Google Cloud Platform. Amazon Web Services. Public software multiples - 4.9x
But are AWS, Azure and Google Cloud just too big for us to learn from? Google Cloud continues its march upmarket, competing with Azure. AWS vs. Azure vs. Google Cloud is one of the greatest case studies of all time. Do they “count” like the scrappy start-ups in SaaS that have now become decacorns? million customers.
Azure and Google Cloud also saw growth begin to slow. It’s hard to make any firm predictions at all right now. But when two of the blue chips in Cloud and SaaS say darker clouds may be coming … it’s worth paying close attention. Even Shopify isn’t providing guidance going forward. It could just be a bump.
Shopify , Datadog, Crowdstrike , Google Cloud-Azure-AWS, Snowflake , etc. But many will find 2024, those stretches have stretched as far as they can. At the end of the day, 2024 may well be a year of Divergent Headlines. SaaS and Cloud growth overall will remain strong. may well put up not just strong numbers, but even stronger than 2023.
Again, epic growth but a material slowing from what AWS cited as “economic headwinds” Still — Google Cloud didn’t see a slowing of growth, and Azure’s growth rate barely budged. Azure (Microsoft): In the $50's billion run rate (estimate) growing 42% YoY (last Q grew 46%).
Growth in public cloud services (AWS, Azure, Google Cloud, Snowflake, etc.) In fact, In fact, Gartner sees overall global software spend growing faster in 2024 than 2023, a very health +13.8% — and crossing $1 Trillion in total spend for the first time! But it’s not that simple.
Calendar Quarter Azure OpenAI Orgs, k CoPilot Users, m Power Platform Orgs, k 1/1/24 53 1.3 “In Azure, we expect Q3 revenue growth in constant currency to remain stable to our stronger-than-expected Q2 results.” Azure is projecting constant growth next quarter : another 30% to the $20b+ product line in annual growth.
Another 5%-7% go to core infrastructure costs (AWS, Azure, Snowflake, etc). Typically support consumes about perhaps 5%-7% of your revenue at scale (excluding customer success) in most SaaS models. It could be more or less, but that’s a rough way to think about it. So at $100m in ARR, you might be spending $5m-$7m on your support team.
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.
A year ago, AWS, GCP, & Azure averaged 44% annual growth. I’m watching public company earnings to identify early weaknesses in the software market. Yesterday, Google & Amazon announced earnings which completes the picture. Growth will continue to slow this year. Today, that figure has dropped to 27%.
Microsoft has published Linux and FreeBSD for Azure. To migrate enterprise on-prem code to Azure is a huge competitive advantage. Elegant on-ramp for a developer to become a paying Azure customer. Satya Nadella has pivoted Microsoft toward open source since he became CEO. These are some of the efforts. M &A Intelligence.
A few of us are seeing no macro impacts, but probably the biggest tell are Cloud platform giants — AWS, Azure and Google Cloud. So there’s no doubt things are a bit harder for everyone in SaaS and Cloud right now. All are still growing at very strong rates. But they are still growing. SaaS spend is still growing.
The most triumphant transfer of control from an original generation leader to a new CEO was surely that of Microsoft, which pivoted from chasing after Apple’s success in the consumer space under Steve Ballmer (don’t mention Nokia ) to successfully focusing on the cloud under Satya Nadella (please do mention Azure).
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.
Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. Microsoft’s Azure Open AI customer base grew 4x by count, up from 2500 last quarter : We have great momentum across Azure OpenAI Service. The desire for AI is broad. The acceleration is really quite broad.
And while AWS’s growth is down a bit, it’s still at epic levels, Azure isn’t even really down, and Google Cloud is growing faster than ever. So we’ve talked about it often here at SaaStr, but things are just so … odd right now in SaaS. The best are still growing, if not faster than ever, then still close to it.
Focusing on smaller developers, in some ways it’s been a bit overshadowed by AWS, Azure, and Google Cloud. DigitialOcean doesn’t want to take AWS, Azure and Google on in the enterprise and doesn’t really try. So DigitalOcean is the quiet Cloud platform that keeps on growing.
Microsoft also reported strong growth overall and for Azure and Cloud especially. What a visceral comparison to Salesforce, which has seen a dramatic slowdown in enterprise growth. But ServiceNow? None really. Not for now, at least. The impacts of today’s shifts in the economy are … well, they’re uneven. Some are hurting.
Look no further than the massive companies pushing the public & the private market forward: Snowflake, Databricks, Amazon, Azure, Google Cloud. 2020 is the decade of data. It’s quite possible that data products have created more market cap than any other subsegment of SaaS in the last five years.
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.
Amazon Web Services and Azure, the business units inside Amazon and Microsoft serve and sell to small, medium, and large companies in every major geography. Microsoft Azure. A broad software buyer index would be the best metric to understand how buyer preferences are changing across the market. Fortunately, it exists. So do Salesforce.
Google Cloud , Azure, and GitLab, all tied directly or indirectly to AI, are seeing massive acceleration. But Google Cloud, Azure, and GitLab are all benefiting and on fire. Security and compliance are strong, with Wiz turning down billions from Google. Crowdstrike is up and still grew 35%. Is there a bubble? Does it matter?
Disclosure: Microsoft is a client of the author. This week Microsoft offered up a presentation on its “ Microsoft Cloud For Sustainability ” effort, which should benefit companies trying to wrap their arms around efforts to reverse climate change and pollution.
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