Cloud company Snowflake at the beginning of a long journey?

The provider of cloud data processing solutions Snowflake Inc. (SNOW), maybe only at the beginning of its growth. The company runs in a market that is increasing and has a lot of advantages over its competitors. Fortune Business Insights said the cloud storage market would be worth about $70 billion in 2021. But it could grow to $376 billion by 2029. At the same time, the total growth rate each year will be 24%.

Snowflake has only touched a small part of the potential market, but the number of customers is growing at double-digit rates. The company had 6,322 customers at the end of the first quarter, that’s 40% more than at the same time last year. The number of significant customers grew by 98 percent, to 206. Snowflake’s sales rose by 85 percent in the first quarter of the fiscal year 2023, which ended on April 30, 2022. From $203 million to $166 million, the loss went down. Analysts on Wall Street think the company won’t make money for a while, which is typical for a growing IT company.

Snowflake’s competitors are the cloud storage of technology giants such as Amazon, Microsoft, and Alphabet. However, Snowflake stands out among these large cloud companies because it is universal and independent. Its solutions work in all cloud ecosystems, a serious competitive advantage. Many Wall Street experts believe that Snowflake can become one of the global cloud services market leaders. 

The company has a wide range of digital transformation solutions, such as tools for storing, analyzing, and visualizing data from different sources gives the company room to grow as digital transformation continues. Yet more businesses are looking to move their data to the cloud, which will help them grow their customer base. Snowflake also has a high rate of keeping customers, which is over 170 percent. The company’s leaders recently said they are getting into a large, promising market for IT solutions for healthcare and biotech.