Cloud and SaaS

The great winners of the last 10 years in the B2B space have been the cloud services and software as a services companies.

SaaS. Even the very high multiples they enjoy as 2020 ends seem defensible given the growth that can be expected in the cloud. Snowflake has emerged as the posterchild of the valuations these companies can achieve. SaaS is already a discipline. I believe that we need to inject SaaS into the Spanish economy and need to help investors take the ones we have to the next level. However, may experience as a Spanish SaaS company CEO has also given me insight into the limitations of the market. If you are into SaaS financial metrics Jamin Ball is a must read (Qualtrics analysis)

Hyperscalers. Hyperscalers are a whole other chapter. Here Europe has been caught napping and we have no scaled player in a triopoly dominated by US companies, in which only two other US companies have a potential role to play. This market will create trillions of dollars of value over the next decade and we can only capture the sales and services opportunity in Europe. Unless with manage to change the game with Gaia-X and COVID recovery.

Cloud Gaming. A third area which is now booming is Cloud Gaming. We can expect much of entertainment to move to gaming with the new generations, and that gaming to be fundamentally cloud based. Stadia is a global solution that has solved the technical challenge, but is still struggling with the content part. Facebook recently bought a Spanish company (go PlayGiga!) to compete. While other companies like Microsoft and Nvidia are trying to deploy their solution. Gaming has also brought some very interesting IPOs like Roblox