Clouded Judgement 10.27.23 - Cloud Giants Report Q3 '23
@JaminBall:
Cloud Giants Report Q3 ‘23Not 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. You can see some quotes from Azure / AWS in my Q2 recap, and pasted below.I believe one of the bigger reasons software has held up despite the run up in the 10Y to 5% is the expectation for re-acceleration (ie numbers / forecasts going up). Either that or folks are expecting the 10Y to fall back to 3.5% which feels unlikely. Software multiples today are at the same place they were (on average) in May when the 10Y was at 3.4%. After the cloud giants reported this week, the timing of the presumed re-acceleration