Gavin Baker, who’s highly respected by Benchmark’s Bill Gurley, recently posted a thread about growing startup migration away from AWS to GCP/Azure. Thread here:
Aside from cost and convenience, two core concerns emerged: 1) customer requirements (not wanting to indirectly fund a competitor) and 2) IP theft. The latter absolutely caught me by surprise.
I’m curious: have members of the Capiche community observed this technological shift? Does anyone have an opinion about privacy concerns, data, proprietary methods/systems, etc. being stolen by Amazon?
Very curious to hear everyone’s perspective.
Azure is (has been) gaining major share in enterprise, starting to accelerate w/ startups. GCP functionally impressive but order of magnitude smaller & slower growing. Tech-fwd startups & some enterprise adopting for data stack. Eg, Planet core workload is AWS, image pipeline GCP
Almost expect single cloud usage to become a laggard mode for those migrating from legacy stack, and multi/poly cloud to be the common mode going forward. Interoperability priority for Azure (starting from behind, requirement for the legacy enterprise customer base) and GCP
AWS/Azure + GCP: tech fwd. core workload on scaled platform, data on GCP AWS + Azure: Mid mkt/enterprise with legacy MSFT stack, fragmented procurement/inorganic growth, or geo constraints AWS/Azure + VPC: Large enterprise w/ legacy lift & shift stack, heavy legacy/sensitive data
1) Between Nov & Dec'19, I met 13 enterprise & B2B startups (B2B were SaaS offerings) and 6 were built on Azure, 2 on GCP and 5 on AWS. And I actually asked them about Azure, and the #1 reason I got from them; they believe MSFT was better positioned to service their enterprise, 2) enterprise customer needs. The founders think they can get access to MSFT resources and exploit/explore enterprise sell know-how. Some also cited that Azure's coverage and availability worldwide was another reasoning.
Enterprise SaaS co in our portfolio recently switched to GCP because multiple prospects refused to purchase if their data would be on AWS
These specific customers feel like Amazon is more competitive in their core market than Google and are generally distrustful of using AWS as a result (unnecessarily IMO)
We are AWS and won’t switch off that I’m sure. We love MS AppCenter and use Google transcription and Microsoft for ML. I’ve found that there’s no advantage to putting all your eggs in one basket. Also on the ip theft concern, that can’t be real, can it? These guys don’t need our ideas or ip. They’d also never risk their brand and customer base by stealing IP.
I’ve also seen an increasing mix towards Azure and GCP — Azure particularly for up-market enterprise companies with security/compliance requirements as well as open-source + dev tool companies (esp those partnering with Github), and GCP for typical Silicon Valley early startups.
Seeing this trend pronounced a lot more in startups focused on retail. Rationale given - Walmart and other big ones making a big anti Amazon push, even with their vendors.
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