The first pure play on enterprise cloud infrastructure is something that should catch the attention of investors as this fast-growing part of the global computing industry has catapulted Amazon into being one of the most valuable companies in the world. Snowflake fits all the parameters of the red-hot IPO market of today being a US technology company, offering cloud infrastructure, is a pure play and has high revenue growth rate amid with negative cash flows from operation. Even Berkshire Hathaway that has completely lost the biggest shift in the global economy since the economy transitioned into the petrochemical world has committed itself to acquire shares in Snowflake sealing the IPO as one of the biggest this year.
The business – can it beat the big players?
Snowflakes main product is its Cloud Data Platform which unifies data for enterprises across many cloud platforms ranging from Google Cloud, AWS, and Azure. The integration means that companies can easily move and switch data being different cloud providers and carry out its various data processes (see picture). This means that while many of the other cloud providers come with constraint within their own environment Snowflake comes with flexibility and can consolidate all cloud solutions. This means that one team can use Google Cloud and another AWS, and then use Snowflake to integrate it all into one workflow upstream in the organization.
Snowflake tabs into the growing world of data as more and more businesses become digital and with that transition producing ton of data which need storage and subsequent data analytics. If you believe the world be more data-centric in the future, then you should naturally be positive on Snowflake’s business as it will ride the data trend. The platform is used across many industries from financials services, manufacturing, health care and technology. The latest number of customers from 31 July 2020 is 3,117 up from 1,547 a year ago with very high retention ratios and businesses adding more business after being a customer.