Thoughts on Battery's "State of the Open Cloud" Report
This one paragraph is the most important to grok/process
Significant revenue growth pressure on the majority of companies.
If all companies can save 20-30% on OpEx, many companies will pass at least some part of those savings to the customer.
Competition also exponentially increases for most companies as its cheaper/faster to build causing pricing pressure and/or a lower win rate
Savings from generative AI are reinvested to better compete as competition heats up.
Gross margins are negatively impacted due to the pricing pressure mentioned above and/or due to the cost of embedding generative AI."
Excellent post as always