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) 223

GCP(Google Cloud Platform) Cloud Azure AWS 223

Tom Tunguz

JULY 25, 2023

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.

Azure 238

Azure GCP(Google Cloud Platform) AI Cloud 238

Tom Tunguz

APRIL 28, 2022

Paying five decentralized providers in five different tokens means managing several wallets and monitoring token prices to hedge expenses. Perhaps this dynamic drives consolidation in the market, paralleling the web2 infrastructure hypermarts of AWS, GCP, and Azure. It’s too much complexity for a simple static blog.

Payment Solutions 268

Payment Solutions GCP(Google Cloud Platform) Startup Payment Features 268

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 294

Scale AWS Azure Cloud 294

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 144

Systems Review Cloud AI Artificial Intelligence 144

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 167

Cloud Cost optimization & reporting GCP(Google Cloud Platform) Software Review 167

Tom Tunguz

JUNE 9, 2018

It’s a massive acquisition at a massive price relative to other software acquisitions. 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. Developer identity.

Acquisition 203

Acquisition Azure Cloud Enterprise 203

SaaStr

MAY 30, 2024

With a PLG-heavy background, first working at Microsoft Azure and again with Atlassian, the PLG pioneers, he gives insights into leveraging PLG for the growth of your organization. You want customers to understand the product and pricing and start using it on their own. Atlassian, Microsoft Azure, and Zoom are good examples of that.

Scale 302

Scale AI Search Azure Sales 302

Tom Tunguz

FEBRUARY 13, 2023

As Google also reported, usage-based pricing models may weather downturns betterbecause the products they meter grow irrespective of headcount growth, a positive sign for infrastructure. Yesterday, Cloudflare announced earnings. I’m adding Cloudflare to the list of tracked companies for this series.

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

SaaStr

MARCH 31, 2022

Azure’s marketplace has over 4 million monthly visitors. And a lot of this depends on your go to market, but we are selling jointly with the AWS and the Azure, et cetera sellers too. And I think some folks sort of asked, “Did you have to change your product to get on the marketplace or your pricing?”

Scale 261

Scale Marketplace as a Service Cloud SaaS Payments 261

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. Azure (excluding Azure AI) continued to decelerate, and while AWS did come in ahead of expectations, it wasn’t a blow out.

Cost optimization & reporting 167

Cost optimization & reporting Cloud Azure AWS 167

Clouded Judgement

MAY 3, 2024

We now have results from the three hypersclaers (AWS / Azure / GCP). 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.

Cost optimization & reporting 190

Cost optimization & reporting Cloud Software Azure 190

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 184

Cloud Software Azure AWS 184

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 245

Software Review Software Azure Cloud 245

IT World

MARCH 10, 2023

Developers can now integrate ChatGPT directly, using a token-based pricing system, into a host of different enterprise and end-user applications.

ChatGPT 92

ChatGPT Azure Enterprise Pricing 92

Clouded Judgement

SEPTEMBER 27, 2024

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). On top of that- we HAVE seen significant pricing pressure. S3 has dropped nearly 97% in price, while EC2 has fallen nearly 90%!

Cloud 176

Cloud GCP(Google Cloud Platform) AWS Azure 176

Clouded Judgement

JANUARY 27, 2023

Azure (Microsoft) Quarter The week the first of the cloud giants reported - Azure. Early Look at 2023 Guides Given the Azure weakness reported on Tuesday, all software tumbled Wednesday morning with most names down 5-10%. Every week I’ll provide updates on the latest trends in cloud software companies.

Cloud 144

Cloud Azure Pricing Subscription 144

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 98

Scale Pricing Scaling AWS 98

Clouded Judgement

OCTOBER 28, 2022

Hyperscalers Report Quarterly Earnings This week we saw AWS (Amazon), GCP (Google) and Azure (Microsoft) report earnings. At the same time, Azure came in below expectations. Azure called out an incremental $800m of costs expected throughout the year (they just finished their Fiscal Q1).

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

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. These are thought to be the early AI winners, largely due to all of the compute they’re selling to power GenAI applications.

Cloud 167

Cloud Azure AWS Software Review 167

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. This was the worst tone that we’ve heard in years from large AWS/Azure partners, a group that usually expresses different shades of optimism about AWS/Azure growth.”

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

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. Azure : Coming into the quarter, a growth rate that would have satisfied the market would have been ~29%. Azure came in at 31% (constant currency). Follow along to stay up to date!

Cloud 130

Cloud Azure AWS AI Search 130

Tom Tunguz

JANUARY 29, 2025

Azure other cloud services revenue grew 31%. RPOs, or remaining performance obligations, are customer prepurchases of Azure compute that haven’t yet been used. 300b of RPO is basically the next 2 years of Azure revenue already committed. The AI subset is on a $13b run rate, more than double last year.

Azure 100

Azure Software Review AI Engineering 100

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. This week we had two of the hypserscalers report (Microsoft / Azure and Google / GCP), and everyone was eager to see their results. The bars represent the YoY revenue growth, and the yellow line is the stock price.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

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 157

Cloud Azure GCP(Google Cloud Platform) AWS 157

Clouded Judgement

AUGUST 4, 2023

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. Then Q2 came in at 12% (must have seen improvements throughout the quarter). And most importantly, they’ve seen these positive trends continue.

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

Neil Patel

JANUARY 25, 2021

Keep in mind that the on-premise services have a different pricing structure. Power BI can integrate with Azure Machine Learning—plus, its ML and AI features are driven by Azure functions built into the Azure Cloud. Microsoft Power BI offers two pricing plans: Power BI Pro : $9.99 Apache Spark is completely free.

Data Analysis 128

Data Analysis Software Data Scale 128

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 130

Trends Cloud Azure AWS 130

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 167

Cloud Software GCP(Google Cloud Platform) Azure 167

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. Q1 Earnings Season We’re on the eve of Q1 earning season. The Q4 ‘22 growth rate was 38% YoY. Revenue multiples are a shorthand valuation framework.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

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

Cloud 190

Cloud Artificial Intelligence GCP(Google Cloud Platform) AI 190

User Pilot

MAY 30, 2023

This tier has custom pricing. Lytics pricing is not available on its website and to get a quote, you need to contact their team. Similar to Lytics, Bloomreach pricing is not openly available. You need to contact their sales team for a quote and they’ll suggest a pricing plan for your business needs.

Azure 98

Azure Government Marketplace as a Service Pricing 98

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 130

Cloud Azure AWS Generative AI 130

Clouded Judgement

MAY 26, 2023

Azure / Confluent / Datadog reported a few weeks back (they all had March quarter ends), and their commentary suggested the worst was behind us. An element of re-acceleration is definitely priced in to current 2024 estimates, so we may see 2024 estimates fall. This means we got commentary for the first time on May trends.

Cloud 144

Cloud Azure Trends Forecasting 144

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 190

AI Cloud Revenue Technical Advisors 190

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 184

Cloud Software GCP(Google Cloud Platform) AI 184