November 18, 2021
Photo: Sundry Photography/iStock Editorial/Getty Images Plus
Good morning, and welcome to Protocol | Enterprise. This Thursday: Snowflake's new services and new challengers, IBM's quantum leap and China's cloud-capacity glut.
A little more than a year after Snowflake's historic IPO, the cloud-native data management market has gotten a lot more complicated.
Snowflake is fending off more challengers these days. Companies like Databricks have forced it into a more defensive position within a market it helped create. But customers are still embracing its services: Second-quarter revenue doubled to $255 million. And this week the company showed off several new products and partnerships that it believes can help it maintain that momentum going into the end of the year.
Snowflake also experienced one sure sign it's maturing as an enterprise tech vendor: It got into a public dispute with Databricks over performance claims trumpeted by Databricks a few weeks ago.
But the company's stock hit an all-time high this week, after it had fallen precipitously a few weeks after its IPO. Stock prices are imperfect measures of a company's performance and trajectory, but its performance and momentum — as well as the performance of its competitors — are clear evidence that cloud-based data warehouses and data management tools have arrived to stay.
As Protocol | Enterprise noted last month: "Data isn't the new oil; it's the new gold. And in any gold rush, the ones who make the most money in the long run are the tool makers and suppliers." And, for now at least, Snowflake's shovels are still very much in demand.
— Tom Krazit
Tired of Marketing and Sales butting heads? Join the Club. Watch the latest episode of Clari's Club Revenue on Nasdaq as Sterling Snow, CRO of Divvy, shows you how to get your revenue teams working in harmony.
Quantum leap? IBM announced what Axios called a "quantum computing breakthrough" in a breathless report Sunday about a 127-qubit quantum chip. But industry experts were skeptical about its claims: The number of qubits in a quantum processor is important, but it's only part of the story.
Better together: Slack rolled out a new platform design that promises to make it easier for third-party developers to integrate their apps on Slack. Protocol's Lizzy Lawrence talked to Slack about the changes, which include a no-code tool for building workflows.
Join us Wednesday Dec. 8 at 10 a.m. PT for The Year in Enterprise Tech, a live virtual event recapping the week that was at AWS re:Invent, and discuss some of the most important trends and developments that will shape enterprise computing in 2022. Our panel features Sheila Gulati of Tola Capital, Liz Fong-Jones of Honeycomb and Corey Quinn of The Duckbill Group in a free-wheeling discussion moderated by Protocol's Tom Krazit. RSVP here.
AWS will likely focus more on specific industries, CEO Adam Selipsky said, with packages of cloud services designed for specific sectors. That's a strategy already embraced by Microsoft and Google Cloud.
Microsoft reorganized its cloud and AI group, in what's become at least an annual event. This time it's creating a new team for Executive Vice President Jason Zander that will report directly to CEO Satya Nadella and focus on emerging enterprise technologies.
Nvidia continued to post blockbuster earnings with a 50% increase in revenue driven by a 55% increase in sales of data center chips.
Splunk CEO Douglas Merritt stepped down rather abruptly ahead of the company's quarterly earnings call, with no named successor at the ready.
China is planning to replace U.S. cloud vendors and other enterprise tech suppliers with domestic suppliers, according to Bloomberg.
The Department of Homeland Security has an idea for how it's going to try to recruit security experts from the private sector: pay market-rate salaries.
Microsoft opened a new Azure region in Sweden that the company said will run on 100% carbon-free energy.
Software supply-chain attacks are still a thing approaching the one-year anniversary of the SolarWinds discovery, and GitHub just fixed two major security flaws in the npm package registry, which is widely used by software developers.
It's a good time to shop for cloud-computing services in China: Canalys said this week that following the government limits on the number of hours minors are allowed to play video games reduced cloud usage in China by up to 30%.
Club Revenue on Nasdaq digs into the strategies driving revenue growth at the highest performing companies. Tune in as Clari's CMO Cornelius Willis interviews innovative revenue leaders to learn their secrets for turning sales teams into revenue machines.
Thanks for reading! We'll see you on Monday!
Clarification: A previous version of this newsletter described Informatica as a Snowflake competitor, whereas both companies see it as more of a partner. While partners can turn into competitors fairly quickly in enterprise tech, that's not a fair assessment of their relationship at present.