IPO which became Salesforce and Warren Buffett Bullish


(Editor’s note: this article Giri karma Was originally published Linkedin On September 10. Jerry has published several articles here on Cloud Wars over the past six months, and as with all his other entertaining and compelling pieces, this article reflects Jerry’s informed views and does not necessarily reflect the views of Cloud Wars . In this piece, Ziri explores the possibility of the much-awaited IPO for Snowflake and the parts played by investors Salesforce and Warren Buffett in that event. Jiri’s most recent Cloud Wars article, called Can Salesforce become the next trillion-dollar company?, Touches some related topics and was published September 5. A solution architect who studied fintech at MIT and has a special emphasis on ML and blockchain, Jiri has worked with Salesforce technology for many years.)
The various milestone years in enterprise IPO history were: 1986, 2004 and 2012. I believe that the year 2020 will be remembered as these important dates.

Robin Hood of Omaha?

Did Warren Buffett suddenly become Omaha’s Robin Hood instead of Omaha’s Oracle? not likely! When you are 90 years old, You will not make silly bets with your money. It can tarnish your reputation and your legacy. So why is the most famous investor in the world, Warren Buffett to take $ 570M stake in start-upThe And why is Salesforce invests $ 250M extra In a company you’ve never heard of? Here is my complete information about Warren Buffett, Mark Benioff and I Snowflake.

Short history lesson
  • March 12, 1986 – Oracle $ ORCL (IPO price: $ 0.067, today: $ 55.73)
  • March 13, 1986 – Microsoft $ MSFT (IPO price: $ 0.089, today: $ 214.25)
  • June 23, 2004 – Sales force $ CRM (IPO Price: $ 3.95, Today: $ 254.70)
  • June 29, 2012 – service now Now $ (IPO price: $ 23.70, today: $ 487.41)

Will the year 2020 add another name to that list?

Play it frank again

Do you think Snowflake will be the youngest? Not me Here’s why:

Snowflake is going to be one of the biggest technical IPOs in history
  1. Snowflake Tam is far bigger for an IPO than any previous firm Frank
  2. Snowflake disrupts a market dominated by Oracle, Microsoft, IBM… etc.
  3. Snowflake is designed for a multi-cloud world
  4. Snowflake is a primary acquisition target for almost every cloud vendor
  5. Snowflake can be as large as Oracle (if not stopped by acquisition).
  6. Snowflake complements SaaS applications like sales, service no … etc.
  7. Snowflake has a technology advantage that will be carried forward
  8. Snowflake has a favorable economic model that makes it a hedge against vendor lock
  9. Snowflake works with all major clouds: AWS, Azure, GCP and Salesforce.
  10. Snowflake integrates multiple data platforms Informatica, Tableau, Power BI, etc.

And this is just a beginning.

What is the future of snowflakes?

There are only three most likely options:

  1. Snowflake is acquired by Salesforce, Oracle, Microsoft, Google, Amazon or IBM.
  2. Snowflakes will become high-end like service names, documents, octa, viva… etc.
  3. Snowflake will outperform competitors and become acquisitive like Salesforce
The conclusion

In 1986, I could not invest in Oracle and Microsoft IPOs; I was very young.

In 2004, I missed the Salesforce IPO because I had no investment experience.

In 2012, I did not invest in ServiceNow because I did not know how to evaluate companies.

But in 2020, I will not miss the Snowflake IPO.

(Author disclosed: I have long been in CRM, MSFT, AMZN, ORCL and now the companies mentioned. I intend to buy SNOW shares when these become available. I wrote this article myself, and it expresses my own opinion. I am not getting compensation for this.)

(Additional disclosures: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to buy or sell securities. Before buying or selling any shares, you should do your research and reach your conclusion or consult a financial advisor. Investment involves risk, including loss of principal.)