Snowflake has Momentum with AWS & Microsoft…Why Google may not be Next

Recent earnings prints from Amazon and Snowflake, along with new survey data, have provided additional context on top of the two events that Snowflake and Databricks each hosted last June. Specifically, we believe that the effects of cloud optimization are still being felt but are nearing the end of peak negative impact on cloud companies. Snowflake’s recent renewal with Microsoft better aligns sales incentives and should improve the company’s traction with Microsoft Azure, a platform that has long favored Databricks. Google however remains a different story as its agenda is to build out its own data cloud stack, rather than supporting Snowflake’s aspirations. In this Breaking Analysis, we clarify some of our previous assumptions around Snowflake economics. We’ll dig into the three U.S. based hyperscale platforms with ETR data to better understand the footprint that key data platforms have in those cloud accounts; and, ahead of Google Cloud Next, we’ll preview how we believe Google is evolving its cloud and data stacks to compete more effectively in the market.Snowflake Investor Day Deckhttps://investors.snowflake.com/events-and-presentations/event-details/2023/Snowflake-Investor-Day-2023/default.aspxSnowflake proof points on Snowpark vs. Sparkhttps://www.snowflake.com/en/resources/report/snowpark-customer-results/MP4 download of Snowpark data as narrated by CFO Scarpelli:https://video-cube365-net-east.s3.amazonaws.com/uploads/clip-mp4/947379-hardsub.mp4