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There was a price war in the past. Amazon cut its prices in response to a new competitor.
The cloud infrastructure market has evolved over time. Microsoft and Google are both trying to grab share from the leader, with Microsoft in particular trying to get a piece of the leader's pie. The era of seemingly endless price cuts has been overtaken by a different market narrative.
The choice to build out its own infrastructure is an interesting point. It is worth your time to read Techcrunch's coverage of the event. We wanted to get a better idea of what founders and CEOs think about their public cloud choices.
We got feedback from BuildBuddy, Monte Carlo, and Egnyte, all of which we are tracking.
We asked the three founders what they thought. There are a few observations on their responses.
5 cloud investors illustrate the various paths ahead for startups
Only a small number of companies built on a public cloud and later went their own way. Most companies that build on public clouds stay there despite the transition being managed by Dropbox.
It looks like that will stay the case. The scale needed to make such a transition economical was mentioned by two younger companies in our survey. Egnyte is the leader of a company that has a history of cloud storage, so surely it has the required scale, right? We can assume that almost every startup is going to stay put if Egnyte is still content to use public cloud.
Both buildyBuddy and Monte Carlo are single cloud companies. Egnyte has a small amount of work on clouds that are not its main workload. We are seeing the same answers from each company. If you get a startup to join your public cloud when it is young, you have a customer for life.
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