February 15, 2017

State of the Cloud Report

By Byron Deeter

Cloud Report As the definitive guide to the biggest trends in the cloud industry, this year’s “State of the Cloud Report” includes: State of the Cloud 2017 from Bessemer Venture Partners 1. A Look Back at 2016  2016 was a marquee year for a number of reasons. First, we all remember the rocky start in […]

Cloud Report

As the definitive guide to the biggest trends in the cloud industry, this year’s “State of the Cloud Report” includes:

State of the Cloud 2017 from Bessemer Venture Partners

1. A Look Back at 2016 

  • 2016 was a marquee year for a number of reasons. First, we all remember the rocky start in February where the Cloud Market dropped 35%
  •  Subsequently, rebounded back to normal levels and ended the year up +15%
  • The dip in the market had two main outcomes: First, it led to unprecedented amounts of M&A (4x more than any other year and 40% of the total cloud market cap of $300B) – and second, it led to the fewest number of cloud tech IPOs since the financial crisis.
  • A combination of these factors has led to the highest quality backlog of private cloud companies in history. The top 100 private Cloud companies alone represent over $100B of private enterprise value.

2. We provide a deeper look into the three top questions every private cloud CEO should be discussing with his/her Executive team.

  • How fast should I be growing?
  • How much should I burn?
  • How do I scale?

 3. Bessemer’s 7 Predictions for 2017

  • The year of human assisted AI
  • APIs will serve as the backbone for a majority of software infrastructure
  • Architect for infinite scale without infinite spend
  • Mobile unlocks non-desk worker productivity
  • NPS everything
  • Diverse teams win
  • The screenless software movement

Here’s a look at the 2016 State of Cloud for your reference.

By Byron Deeter, Partner, Bessemer Venture Partners

Permission to republish granted by Bessemer Venture Partners. Original posting located at LinkedIn Pulse

Byron Deeter

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