Google revenue

Databricks CEO Ali Ghodsi Announces $1 Billion in Revenue

Hello and welcome to Protocol Enterprise! Today: what a revenue milestone for Databricks says about the future of enterprise data, Alibaba reports slow but recovering growth in its cloud division, and chip sales data points to a quiet second half for consumer electronics companies.

Databricks Milestone

At a time of global instability and economic concerns, here’s one thing you can bring to the bank: We’re going to be generating more data next year than we have this year.

This means that it is the right time to work in the field of data management, as Ali Ghodsi knows. The CEO of Databricks announced on Friday that his company had surpassed $1 billion in annualized revenue, more than double the $350 million in annualized revenue reported just two years ago.

  • Databricks sells what it calls a data lakehouse service, an update of the old concept of data warehouses designed to store lots of rarely accessed but still important information.
  • These services were designed for the cloud era, which requires more flexibility and customization than older data warehouses could handle.
  • The company also helps other companies manage machine learning and data science activities, which almost every company says they at least want to do, even if they’re just getting started.

But Databricks is not alone in this market.

  • Snowflake, which two years ago had the most lucrative IPO in software history, lost some of its luster with Wall Street but generated nearly $400 million in revenue during its tenure. first quarter, a jump of 84% over the previous year.
  • Confluent has also had success helping customers process real-time data, which Databricks and Snowflake are also pursuing.
  • And, of course, there can’t be a discussion of cloud-based data services without mentioning AWS, Microsoft, and Google Cloud, all of which offer similar services to help modern businesses manage their data.

Databricks has spent much of 2021 answering questions about an IPO, which have understandably faded this year given the correction in corporate tech stocks in the first half of the year.

  • But there is no doubt that Databricks is moving in this direction, which will give it the funds and status to make bigger and bigger bets on the future of data.
  • Ghodsi told the Wall Street Journal that Databricks is also considering making a few acquisitions, given that it still has a lot of cash in the bank from previous funding rounds.

As companies advance in data-intensive practices like machine learning and observability, they will generate more data than they know what to do with.

  • The long-term question for Databricks and its cohorts is what opportunity cloud providers will let them have.

—Tom Krazit (E-mail | Twitter)

MICRON SPONSORED CONTENT

Shortage of microchips could harm national security: The global shortage of semiconductors has hampered production of everything from pickup trucks to PlayStations. But there are more serious implications than a shortage of consumer goods. If the United States does not ensure continued domestic access to advanced semiconductor manufacturing, experts say our national security could suffer.

Learn more about Micron

Alibaba’s slow growth

China’s Alibaba Group announced yesterday that its cloud revenue grew 10% year-over-year to the US equivalent of around $2.64 billion for the quarter ending June 30th. share of the infrastructure services market, and DingTalk, Alibaba’s digital collaboration and application development work platform. The cloud division’s net operating loss narrowed to $193 million from about $243 million a year earlier.

The cloud division’s revenue reflects renewed customer growth in non-internet industries, primarily financial services, public sector and telecommunications, according to a regulatory filing. Cloud growth was offset by lower revenue from Alibaba’s biggest internet-related customer, a public limited company that has been phasing out its overseas cloud services for international business due to “non-standard requirements”. related to the product,” a decline in business from online education customers and easing demand from other Internet industry customers in China, the company said. Non-internet related industries accounted for 53% of Alibaba’s cloud revenue, an increase of more than five percentage points from the same period last year.

Alibaba Cloud introduced a new cloud infrastructure system to power its data centers in June. The cloud infrastructure processing unit is expected to drive performance improvements in networking, storage, security and computing power by offloading virtualization functions from servers to dedicated hardware, the company said. society.

— Donna Goodison (E-mail | Twitter)

MICRON SPONSORED CONTENT

Shortage of microchips could harm national security: To ensure America’s security, prosperity, and technological leadership, industry leaders say the United States must encourage domestic chip manufacturing to reduce our dependence on chip producers. East Asia for critical electronic components.

Learn more about Micron

Thanks for reading – see you Monday!