Looking at the Battery Ventures “State of OpenCloud 2022” for trends that will impact 2023.
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HOW DO THE VCs LOOK AT THE STATE OF THE OPEN CLOUD MARKET?
- VCs are still very bullish on cloud-native and open-source cloud companies
- “Good growth” will be encouraged and rewarded
- Software “multiples” are back to 2018-19 levels. The 2020s were crazy value inflation.
HOW CAN THAT INFLUENCE WHAT 2023 MIGHT LOOK LIKE?
- Lots of companies are re-evaluating their spending levels and cost levels
- Lots of highly “valued” private companies may become acquisition targets in 2023
- Most of the job-cuts, thus far, haven’t been that large, as a percentage.
- For software businesses, cloud-services are growing 3-5x their software business. Expect to see more companies moving to those offerings.
- Cloud providers continue to show strong growth, even at a larger scale. Expect this to continue, although they are all shifting their focuses.
- Software can be a driving force to enable productivity, so expect to see companies continue to focus on software-driven projects.
- Lots of good insights into how the selling and buying model are evolving. Interesting if you’re evaluating companies beyond just what they offer.
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