Google Says Cloud Will Triple Again in Next 5 Years

We did a deep dive on Google Cloud’s incredible numbers the other day here but there was one point, in particular, it’s worth doing a deep dive on.

Google Cloud itself is predicting the Cloud will triple by 2026 or so, and reach $760B in spend in 2025, up from $290B in 2020 (note, I’m extrapolating a year or so from this chart and prediction, which itself is from IDC data):

While Google is focused in particular on Cloud infrastructure, it really doesn’t matter.  The point is that as crazy as SaaS and Cloud seem today, Google itself says we’re on our way to $1T+ in Cloud revenue by 2026/2027, and that things will triple by then.

So here’s the point:  if you have something good in SaaS now — keep at it!  Because we’ve never seen tailwinds like this before.  Ever:

  • Imagine a $10m ARR business today, with 120% NRR.
  • With the Cloud growing 3x in the next 5 years, your own revenue compounding 120% each year …
  • That alone will get you halfway to $100m in ARR!!

Do what it takes if you have something good in SaaS and Cloud right now.  Find that extra hire.  Don’t quit.  Raise that extra round.  Do whatever it takes.  Enough with the excuses and the reasons Why Not.  Because if you have some momentum now, and happy customers … you can ride a wave like we’ve just never seen before.

And really, make not see again for our lifetimes.

It’s a boost none of us “SaaS Old Timers” have ever seen in our lifetime.  It truly is different right now.  It’s more than just product-market fit and disrupting an industry.  Because if you have something great today, you get even more today. You get a Super Boost from the Cloud tidal wave, turbocharged in part by Covid-boosted digital transformation.

Carpe Diem.

Published on February 22, 2021

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