Tag: cloud computing

Cloud Wars: AWS vs. Azure vs. Google Cloud Platform (“GCP”)

Cloud Wars: AWS vs. Azure vs. Google Cloud Platform (“GCP”)

It’s all about the cloud. Given that Amazon’s AWS business unit and Microsoft’s Azure business unit are the two finalists for the Pentagon’s $10 billion “JEDI” contract, we thought it timely to publish AWS, Azure and GCP revenues for the 12-month period ending 12/31/18. As per usual, see the video and image content “below the fold.”

Amazon (AWS): $25.7 billion. Amazon reports AWS figures in its SEC filings. The $25.7 billion figure represents 47% year-over-year growth.

Microsoft (Azure): $6.5 billion. This figure is our estimate based upon certain public disclosures made by Microsoft. We estimate that Azure revenues grew 82% year-over-year.

Google (GCP): $4.5 billion. This figure is our estimate based upon certain public disclosures made by Google. We estimate that GCP revenues grew 32% year-over-year.


Continue reading “Cloud Wars: AWS vs. Azure vs. Google Cloud Platform (“GCP”)”
The Subscription Economy

The Subscription Economy

Our Conversation with “Subscription Economy” Pioneer and Zuora (tkr: ZUO), Co-Founder & CEO Tien Tzuo

This article serves as a follow-up to our earlier article: “Every Company Should Consider Adopting A Subscription Revenue Model
  • We favor subscription revenue models for a variety of reasons:
    • Providing a better service: Subscription models (aka – “usage-based models” or “consumption-based models”) align value provided to the customer with customer payments. The Cloud is tailor-made for usage-based services. Consider Netflix. The company’s content recommendation engine suggests content that you are likely to enjoy based upon your viewing history and preferences. Consider any one of a number of services that make wine recommendations based on your wine consumption history and preferences. The cloud enables companies to: 1) observe customer usage 2) to refine service elements that users value most. The output is growing a better service, which leads to greater customer loyalty, predictable revenue and a stronger competitive moat.
    • Greater strategic flexibility: Subscription revenue models provide companies with superior revenue visibility and operational predictability – enabling them to take a longer-term strategic approach to capital allocation.
    • Premium valuations: Investors award valuation premiums to subscription revenue companies vs. upfront license revenue models which lack predictability and can be volatile.
    • Usage-based models are becoming the norm: In many cases customers prefer to engage with companies via consumption-based models vs. paying for everything upfront. Auto OEMs, content providers (video games, feature film, episodic television, live sports, newspapers), ride share, short-term office rental – you name it – subscriptions are where it’s at.
Continue reading “The Subscription Economy”