Hot in Enterprise IT/VC - What's 🔥 in Enterprise IT/VC #364
What's 🔥 in Enterprise IT/VC #364🤯 Enterprise software spend to cross $1 Trillion, reaccelerating 📈 to 13.8% from 12.9%As I’ve said repeatedly, AI is table stakes and will be embedded in all applications as long as the productivity increase is there and customers are willing to pay. While we have Marc Andreessen’s’ techno-optimist manifesto this week, IMO there is a better, more practical letter you should read and that is from Satya Nadella. There is no better zoom out communicator on this topic, and I encourage all of you to read his annual letter to investors as he eloquently spells out the opportunity ahead in what he calls the New Era of AI. In short, we are entering a new era and to “accelerate our lead in AI by infusing this technology across every layer of the tech stack.” Repeat after me, AI is a technology and will be infused everywhere.
And ❤️ this quote, “that maximum enterprise value gets created during platform shifts like this one” - if you’re an enterprise software startup and not thinking about how AI can disrupt your business remember Microsoft and every incumbent is and they will come after you. This does not mean as venture investors we should chase AI cos as the fundamental rules still apply. While it’s not Techno-Optimism, let me provide some more rays of light 🌦️ for What’s 🔥 readers. In Gartner’s newest IT Spending forecast, enterprise software is projected to be one of the fastest growing categories with 13.8% growth in 2024 to cross the $1 Trillion mark for the first time ever💰! More importantly, Gartner is projecting growth to reaccelerate from the prior year from 12.9% to 13.8%. Now we all just need to figure out how to efficiently capture these big dollars. I know many CFOs are sharpening their pencils now and trying to figure out how much ARR should accelerate from this year to next. Finding that steady balance is key because if you forecast too much growth and it doesn’t happen, you’ve also increased your spending in advance, and it will get you further from cash flow breakeven if the growth does not materialize. Here’s more from WSJ CIO Journal:
Consistent with the hype around Generative AI, very little of that IT spending is tied to it for this year and next but it will be massive starting in 2025. And here’s a video from CNBC providing more detail on the projections. Some notes: overall enterprise IT Spending is recession proof, will add $2 Trillion of IT Spending in next 4 years, AI Theme some impact on spending for next year but not huge yet, software $1 TRILLION with double digit growth at 13.8%, shift from on-prem to cloud, new spend skews towards cloud, security towards cloud, AI security will be huge… As always, 🙏🏼 for reading and please share with your friends and colleagues. Also please keep our friends in 🇮🇱 in your thoughts. Scaling Startups
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What's 🔥 in Enterprise IT/VC #363
Thursday, October 19, 2023
Thoughts + 🙏🏼 on 🇮🇱 ... b4 regularly scheduled programming: Loom exit, seed valuations...
What's 🔥 in Enterprise IT/VC #362
Saturday, October 7, 2023
What's ahead in Q4 from LPs and VCs (Origins Podcast) - more shutdowns?, hard choices for seed funds?, net new company funding 🔥, default 1st 10 in office, TVPI vs. DPI
What's 🔥 in Enterprise IT/VC #361
Saturday, September 30, 2023
PLG, PLS, Sales led 🤯 - enough acronyms, build a product, sell it efficiently
What's 🔥 in Enterprise IT/VC #360
Saturday, September 23, 2023
IPOs, Splunk for $28B, mega funding rounds + M&A - are we back or is this just a mirage?
What's 🔥 in Enterprise IT/VC #359
Sunday, September 17, 2023
Going from Non-obvious to $100M ARR - the Security Scorecard journey
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