I have been trying to learn more about cloud and the state of the market and what selling an API really means. A friend of mine at Nextmv posted this in our company Slack today and I would love to hear your thoughts about it!
Here are my takeaways...
As more companies become basically productized APIs -- the COG (cost of goods) for those companies is becoming untenable -- literally all of the money made on their product goes right back to hosting costs.
in what Martin Casado (guest interviewee) deems the "operations phase" (right around ipo), products that rely on cloud to exist start to feel a massive burn in, for example, what they pay to AWS
[00:16:15] Users of the cloud are starting to evaluate, "Where can I get benefits that are outside of the cloud? Are there other, maybe not part of the big three companies that provide something interesting?" So we're just starting to see glimmers of innovation again in traditional infrastructure stuff like compute network and storage. And so we can talk about that. I think it's actually very interesting to talk about, is now we're starting to see the innovation come back out of the cloud and be exposed to more. So we're entering again, this cycle of innovation.
I have a few questions for everyone & I'd love to hear your thoughts on this topic in general.
As mid-sized companies run to put out the fire that is their cloud costs, how do you think the market will change? Obviously, Amazon will be fine, but what does that say for what kinds of companies the market will drive? What kind of innovation do you expect to see as this market correction happens?
Are you personally feeling the burn of AWS (for example) costs in your role/at your start up?
Or does your company (a la Snowflake/Mosaic/Fly.io) kind of existing in this new world already?
how does this wild-n-crazy (and cool and fascinating) market shift affect your day-to-day? does it at all?