Today, Batteries Ventures issued its State of the OpenCloud report, which includes a number of statistics that show the rapid expansion of cloud services in recent quarters. The research sheds light on the race to invest in startups that been going on for the previous 18 months.
Companies were compelled by the epidemic to adopt cloud services — infrastructure, platform, or SaaS — early and more quickly than they would have otherwise. For software firms of all shades, especially those founded on open source code, this resulted in large investments, astonishing IPOs, and incredible revenue growth.
“The average infrastructure-software IPO valuation has surged tenfold over the previous ten years, and there are more infrastructure-software businesses valued at $10 billion or more than ever before,” according to the research. Furthermore, the data suggests that a robust pipeline of significant cloud IPOs exists.
The cloud industry, according to Battery, might be worth $1 trillion in the future, when you consider that the great bulk of labor, development, and computing will done on the cloud at some time in the future, the investment group’s round-number forecast may appear conservative. This paper shows that, despite recent rapid development, we are only scratching the surface of the cloud’s possibilities.
That is what we have learned thus far. While the digital transition is obvious and shocking, this analysis shows that, despite recent near-incredible growth rates, we are only scraping the surface of the cloud’s possibilities.
The Amazon Web Services (AWS) public cloud platform is a huge success. Amazon publishes its financial statistics on a quarterly basis, revealing how much cloud revenue it produces and the resultant operational profit. Microsoft also breaks out growth for its Azure service, but the precise amount is difficult to pin down because other services are included in the reporting category. The data in Battery’s study is broken down per platform. The venture capital company estimates that AWS had a $59 billion run rate in Q2 2021, while Azure had a $37 billion run rate and Google Cloud had a $19 billion run rate — and this was before the firms released their Q3 numbers.
Critically, Battery’s Q2 results were up 44 percent year over year, accelerating from a pre-pandemic low of 36 percent in Q2 of last year. Indeed, public cloud growth has remained stable or increased since the second quarter of 2020. Given the magnitude of the data, the increase in growth from 36 percent to 44 percent is enormous: The three cloud platforms have a total run rate of $115 billion at the end of Q2 2021.