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The decade software ate the world

Intercom, Inc.

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).

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

Clouded Judgement

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
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Clouded Judgement 5.31.24 - Software Sentiment Crumbles

Clouded Judgement

And the promise of the software business model is as companies mature and go out of growth mode the profits will show up. .” As growth starts to slow, it gets harder and harder to justify using revenue multiples as a primary valuation metric. Coming in to Q1 there was broader optimism. Q4’s were generally good!

Cloud 184
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Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

Clouded Judgement

Model providers (OpenAI, Anthropic, etc as companies start building out AI). 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.

Cloud 190
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16 Changes to the Way Enterprises Are Building and Buying Generative AI

Andreessen Horowitz

Enterprises still aren’t comfortable sharing their proprietary data with closed-source model providers out of regulatory or data security concerns—and unsurprisingly, companies whose IP is central to their business model are especially conservative. 2B run-rate revenue, including spend on OpenAI models via Azure.

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SaaS Applications Architecture – The How

Frontegg

Multi-tenant SaaS architecture is the better option if you want to create a scalable business model that is flexible and versatile. Lower Maintenance Requirements – All ongoing maintenance costs can be baked into your pricing models. Here are some benefits. Big ops can pick Amazon Fargate or go for Amazon EKS.

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

OpenView Labs

Though it was pioneered in the infrastructure layer (think: AWS and Azure), it’s becoming increasingly popular for API-based products and application software. Investors especially love how the usage-based pricing model pairs with the land-and-expand business model. Land-and-expand is real.

Scale 98