10 thoughts on “Cloud Startup Values Are Getting Insane”

  1. The valuations we’re seeing for the likes of RightScale, Aster, and Cloudera reflect the same theme that drove the recent high-priced acquisitions of Greenplum, 3Par, and Netezza: big data.

    Firms that provide the appliances, software, and services that help businesses cope in the Industrial Age of Data stand to make a mint.

    It will be interesting to see who the winners and losers are when the froth dies down.

  2. Oddly, I heard the same refrain from a VC yesterday, with the attendant demands for a sympathetic ear.

    Truth be told, there is little technology involved in these gigs. Combine redundancy-elimination a la riverbed with a firewall, add a dash of encryption and authentication. serve hot.

    The winners will be those who can execute, not the novices given to navel-gazing. Brand money from index or sequoia wont be a factor.

  3. I think there is a tremendous movement envisaged in the Cloud as Enterprises ,ISVs and Governments embrace cloud services leveraging the various advantages and benefits. What we are seeing now is a tip of the iceberg and the next five to ten years will change the landscape of Cloud services. Companies such as RightScale and Eucalytus as an enabler of this change and specifically as the early movers may have an edge over others. Perhaps they may be the Next Oracles and Sun’s of the Cloud in the decade or earlier. So,No Wonder, there is a lot of investments happening with valuations at a premium.

  4. About time investors saw opportunity in the cloud. This model is here to stay. In 2006 investors were skeptical and dismissed the SaaS model as a minuscule opportunity. The cloud opportunity is still relatively small, the attraction is the rate of growth.

    The investor community like the stock market is ever changing. I recall not long ago, even early stage investor were looking for substantial revenues before committing capital. In 2006, a potential investor indicated that since the infrastructure market for SaaS was huge, the big boys would enter the market, and quash startups.

    I wonder what will happen to the valuation of Rightscale if Amazon or the traditional Systems management companies provide and market similar function as the startup.

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