Redpoint – The InfraRed report
Description
Key learnings:
- Macro trends in public cloud infrastructure:
- Public infrastructure companies have been lowering their guidance in recent quarters due to sustained macro headwinds. These headwinds are primarily driven by customers optimizing for cost, elongated sales cycles for large deals, and go-to-market (GTM) changes introducing short-term challenges. Despite this, hyperscaler growth has rebounded over the past three quarters, largely driven by a surge in AI-related workloads.
- Performance and trends in infrastructure software:
- Infrastructure software is outperforming application software in terms of market performance. This is evidenced by better net dollar retention (NDR) and billings growth. The rebound in hyperscaler growth has also positively impacted infrastructure software. Public infrastructure software companies are trading at a premium compared to their application software counterparts.
- Emergence of new security workloads:
- New security workloads have emerged to combat evolving attack vectors. This has led to the rise of new security vendors and a focus on software supply chain security, which is now top of mind due to the proliferation of open-source software (OSS) and increasing regulation. The industry is also witnessing a wave of consolidation, with significant acquisitions in the cybersecurity sector.
#cyber #cybersecurity #AI