SaaStr

FEBRUARY 20, 2021

But are AWS, Azure and Google Cloud just too big for us to learn from? Google Cloud sees Cloud revenues tripling in the next 5 years. Google Cloud continues its march upmarket, competing with Azure. You can see that here vividly, with Google Cloud having a $30B backlog of signed revenue on top of its $13B in ARR.

Cloud 297

Cloud Azure AWS Scale 297

SaaStr

MAY 16, 2022

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 AWS grew 37% at a $74B run-rate , down a bit from 39% the prior quarter but still adding an insane amount of new revenue. If they stumble, we’re in for a rough patch. They are the Cloud.

Cloud 296

Cloud Azure AWS Engineering 296

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. Each of these businesses are large enough to justify it. “Moving to AWS.

Cloud 311

Cloud AWS Azure AI 311

SaaStr

DECEMBER 28, 2023

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. But then in 2023 — it just plummeted.

Azure 350

Azure Cloud SaaS Trends 350

Clouded Judgement

JUNE 19, 2024

The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

Tom Tunguz

JANUARY 23, 2023

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.

Azure 256

Azure Underperforming Technical Team Machine Learning Artificial Intelligence 256

SaaStr

JANUARY 25, 2023

. “[We’re] not fighting those headwinds”: Given that customers sign 3+ year, $1m+ contracts, one wouldn’t expect any massive decline in revenue from any shorter-term macro effects anyway. 20,000 employees, so about $350,000 revenue per employee. But new bookings aren’t really down, either. to $4m ACV. #4.

Azure 325

Azure Cloud Enterprise Subscription 325

SaaStr

OCTOBER 2, 2024

Billion in ARR GitLab is growing 30% at $730m ARR Microsoft Azure, Google Cloud are on fire, fueled by AI But others are seeing more headwinds due to downturns in the “B2B2B” segment of tech. Revenue growth has slowed from epic rates on the way to $1B ARR, to a still stunning 29% at $1.5B Cloudflare is growing 30% at $1.6

Azure 279

Azure Technical Review Scale AI 279

Tom Tunguz

APRIL 25, 2024

If it wasn’t clear before, AI is the single biggest revenue driver in cloud. 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. of revenue in a year.

Azure 213

Azure AI Search Marketing ChatGPT 213

Tom Tunguz

FEBRUARY 2, 2023

A year ago, AWS, GCP, & Azure averaged 44% annual growth. So far in the first month of the year, AWS year-over-year revenue growth is in the mid-teens. in revenue, GCP is at -7%, not far off breakeven, but a long way from AWS’ 30% profit margins. Today, that figure has dropped to 27%. Amazon: Net sales increased $21.4

GCP(Google Cloud Platform) 314

GCP(Google Cloud Platform) Cloud AWS Sales Hiring 314

SaaStr

MARCH 9, 2022

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. They are only 15% of the customers, but 83% of the revenue. Only 38% of revenue in North America.

Azure 275

Azure AWS SMB Cloud 275

Clouded Judgement

FEBRUARY 7, 2025

They each have some of the largest cloud businesses in the world in AWS, Azure and Google Cloud respectively. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Overall, there was weakness across the board.

Systems Review 144

Systems Review Cloud AI Artificial Intelligence 144

Tom Tunguz

JULY 26, 2022

Microsoft Azure. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. Google’s growth rate fell to 35%, a 29% decline from the trailing 4 quarter average of 49% annual revenue growth. Here are some hypotheses: Google may have greater customer concentration in GCP than Azure.

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

SaaStr

NOVEMBER 18, 2021

Only 12% service revenue, despite being so enterprise. Partners are key — Baker Hughes (a customer and partner) makes up a massive 30% of revenue, and claim Microsoft Azure has contributed $200m in total bookings. And a few bonus notes: #6. Re: Baker Hughes, oil and gas is its largest vertical. #7.

AI 58

AI Azure Cloud Enterprise 58

Tom Tunguz

MAY 31, 2022

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. Here are the revenue growth rates for these businesses broken out by software and infrastructure. Fortunately, it exists. So do Salesforce. ServiceNow.

Azure 240

Azure Software Startup Cloud 240

SaaStr

JANUARY 27, 2024

Typically support consumes about perhaps 5%-7% of your revenue at scale (excluding customer success) in most SaaS models. Another 5%-7% go to core infrastructure costs (AWS, Azure, Snowflake, etc). Dear SaaStr: What is The Average Ratio of Support Staff to Customer Count in SaaS?

Azure 276

Azure AWS SaaS Customer Success 276

Tom Tunguz

SEPTEMBER 26, 2022

Look no further than the massive companies pushing the public & the private market forward: Snowflake, Databricks, Amazon, Azure, Google Cloud. Cloud databases generated $39b in spend , about half of all database revenue. On October 25th, I’ll share my 10 predictions for data in 2023 at The Impact Data Summit.

Data 281

Data Azure Machine Learning Artificial Intelligence 281

Tom Tunguz

OCTOBER 27, 2022

Microsoft Azure. Infrastructure revenue growth averaged 33% this quarter, which is astounding considering we’re talking about businesses that sum to more than $50b of revenue per quarter. At a 7x multiple of revenue, that is another $84b of market cap creation, in theory. Google Cloud Platform. Amazon Web Services.

Cloud 228

Cloud GCP(Google Cloud Platform) Azure AWS 228

SaaStr

MAY 6, 2022

Ultimately — revenue multiples. Revenue multiples are how much VCs, investors, and ultimately, an IPO and public markets will value each dollar of revenue. Revenue multiples don’t affect customers, or even revenue itself. That revenue multiples should rise from where they were in 2019.

SaaS 348

SaaS Azure Cloud AWS 348

Clouded Judgement

OCTOBER 11, 2024

As a result, software vendors often see an uptick in revenue and bookings during these periods. 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 Cost optimization & reporting GCP(Google Cloud Platform) Software Review 167

SaaStr

JULY 31, 2024

Just about everything in Cloud, SaaS and AI is firing on all cylinders at Microsoft: Azure and Cloud up +30% (!) 60,000 AI-on-Azure Customers, and Accelerating — Up a Stunning 60% Year-over-Year We all sort of knew this, but helpful to see the numbers here. #3. So it’s a great and important one for us all to learn from.

Azure 231

Azure Cloud AI B2B 231

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. But it’s raining cash, and earnings per share is growing 22% — faster than revenue. And if so, maybe that’s Digital Ocean. If you haven’t heard of Digital Ocean, ask your developer.

Scale 294

Scale AWS Azure Cloud 294

SaaStr

MAY 30, 2024

Have you ever wondered how you could turn PLG concepts like the freemium model into a fast-growing revenue driver for your company? 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.

Scale 302

Scale AI Search Azure Sales 302

Tom Tunguz

FEBRUARY 1, 2024

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.” Many companies are moving in this direction. 230 10/1/23 18 1 126 7/1/23 11 63 4/1/23 2.5

AI 214

AI Azure Artificial Intelligence Generative AI 214

SaaStr

JULY 19, 2022

Using the Drift Conversation Cloud, businesses can personalize experiences that lead to more quality pipeline, revenue and lifelong customers. More than 5,000 customers use Drift to deliver a more enjoyable and more human buying experience that builds trust and accelerates revenue. Usually, it takes a paradigm shift to grow.

GCP(Google Cloud Platform) 263

GCP(Google Cloud Platform) Artificial Intelligence Enterprise readiness Azure 263

SaaStr

NOVEMBER 3, 2022

Which means better customer relationships, more data, and new sources of revenue. Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure. StratusGreen is a leading provider of cloud computing solutions and services for emerging and mid-sized businesses.

Payments 263

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions 263

Tom Tunguz

JUNE 9, 2018

Microsoft has published Linux and FreeBSD for Azure. To migrate enterprise on-prem code to Azure is a huge competitive advantage. Mix the two, chill, and shake, and you have a new billion dollar revenue business unit for Microsoft. Elegant on-ramp for a developer to become a paying Azure customer. M &A Intelligence.

Acquisition 203

Acquisition Azure Cloud Enterprise 203

SaaStr

OCTOBER 13, 2022

You need an efficient way to keep your customers successful, reduce churn, drive adoption, and increase net revenue retention. Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure.

GCP(Google Cloud Platform) 259

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 259

Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. Many investors laugh (and some rightly so) at the fact that software companies’ valuations are often described as a multiple of revenue.

AI 190

AI Cloud Revenue Technical Advisors 190

SaaStr

NOVEMBER 4, 2021

In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In equation form, Revenue Growth % + Profit Margin % > 40%. When investors place an extra premium on revenue growth, the capital allocation calculus for SaaS CEOs and CFOs changes.

SaaS 319

SaaS Technical Review Benchmarks Azure 319

SaaStr

OCTOBER 6, 2022

We help B2B SaaS marketers turn organic search into a source of repeatable revenue through software and coaching. The platform automates the provisioning of your application to the cloud (AWS, GCP, Azure), integrating cloud ops, DevOps, and security/compliance with 24×7 monitoring and support.

GCP(Google Cloud Platform) 246

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 246

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

Tom Tunguz

FEBRUARY 13, 2023

Large customer revenue contribution increased again sequentially to 63% of revenue, up from 57% in the fourth quarter last year. For fiscal 2022, large customers represented 61% of total revenue compared to 54% of total revenue in 2021 and 46% in 2020… Overall NDR fell, but enterprise spending remains steady.

Cloud 243

Cloud Azure Headcount Software Review 243

SaaStr

APRIL 27, 2021

In my 148 public SaaS companies (including most of the categories of this list but not AWS, Azure, GCP) the aggregate revenue is $185B. No matter what, the wave of enterprise spending that fueled 100 SaaS and Cloud unicorns is just getting bigger and strong. This is your time, folks. Go make it happen.

GCP(Google Cloud Platform) 238

GCP(Google Cloud Platform) Azure AWS SaaS 238

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. They also are seeing AI revenue (largely compute) show up sooner than anyone else. Revenue multiples are a shorthand valuation framework. Top 5 Median: 17.2x

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