Battery Ventures · 2023-11-09 · 938d

State of the OpenCloud 2023: AI Driving Cloud Growth Amid Economic Headwinds

Battery Ventures' November 2023 OpenCloud report analyzes how AI is catalyzing the next wave of cloud adoption while software companies navigate macro pressures and reset growth expectations. The report reveals a market shift from best-of-breed solutions to integrated end-to-end platforms, with companies balancing profitability against sustained budget constraints.

15 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

10-Year U.S. Treasury Yield

4.6%

current

As of November 7, 2023

Broad SaaS EV/NTM Revenue

5.8x

median

Public SaaS companies as of November 7, 2023

CrowdStrike Total Addressable Market

76.1$B

sum of segments

Security and IT Operations domains

Customer Multi-Product Adoption (2+ products)

82%

current

Q3 2023

Customer Multi-Product Adoption (4+ products)

46%

current

Q3 2023

Enterprise Value / NTM Revenue Multiple - 10 Year Average

9.7x

mean

Cloud software companies since 2016

Enterprise Value / NTM Revenue Multiple - 2016-2018

6.6x

mean

Cloud software companies

Enterprise Value / NTM Revenue Multiple - 2020-2021

16.4x

mean

Cloud software companies

Enterprise Value / NTM Revenue Multiple - 2023 YTD

6.0x

mean

Cloud software companies

Palo Alto Networks Product Releases - FY19

13count

actual

Full fiscal year

Palo Alto Networks Product Releases - FY23

74count

actual

Full fiscal year

Tech Spending More Conservative

56%

survey proportion

Respondents to Battery Q3 2023 Cloud Software Spending Survey

Tech Spending No Change

38%

survey proportion

Respondents to Battery Q3 2023 Cloud Software Spending Survey

Y/Y Growth in Net New ARR - Peak

60%

maximum

Q1 2022

Y/Y Growth in Net New ARR - Q3 2023 Estimate

-24%

estimated

Cloud software companies