# Jason Risch | Three Trends in VC-Backed Cloud

Page: https://stenobird.com/podcast/greymatter/jason-risch-three-trends-in-vc-backed-cloud
Text version: https://stenobird.com/podcast/greymatter/jason-risch-three-trends-in-vc-backed-cloud.md
Podcast: [Greymatter](https://stenobird.com/podcast/greymatter)
Published: 2023-04-27T20:07:22+00:00
Episode link: https://pdst.fm/e/traffic.megaphone.fm/GRL9398454331.mp3?updated=1682626351
Audio file: https://pdst.fm/e/traffic.megaphone.fm/GRL9398454331.mp3?updated=1682626351
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Duration seconds: 817

## Resource

VC-backed cloud funding has stabilized at 2020 levels, shifting focus from massive rounds to specialized, early-stage opportunities. The ecosystem is currently being reshaped by three primary drivers: AI/ML integration, vertical industry clouds, and advanced security architectures.

## Highlights
- Main idea: AI/ML is acting as a new platform shift, mirroring the historical transition from on-premise to cloud
- Trend: Industry clouds are bridging the gap between raw technology and specialized solutions by combining SaaS, PaaS, and ISV capabilities
- Failure mode: Over-reliance on generic cloud tools is driving a need for specialized security architectures like data lakehouses to manage massive log volumes
- Practical takeaway: The current market favors founders building highly specialized, modular tools rather than broad, horizontal platforms
- Market shift: While total funding volume has dropped since 2021, venture activity remains high with a focus on smaller, more disciplined checks

## Topics

Venture Capital, Cloud Computing, Artificial Intelligence, Machine Learning, Cybersecurity, SaaS, Industry Cloud, Infrastructure as a Service

## Chapters
- 1:10 — The Post-2021 Funding Landscape: Analysis of the decline in cloud funding since the 2021 peak and the shift toward early-stage, disciplined investing.
- 2:10 — Trend 1: The AI/ML Platform Shift: How foundation models and strategic partnerships are creating a new layer of the cloud ecosystem.
- 6:10 — Oracle and the Infrastructure Race: Examining Oracle's strategic moves in AI/ML and their partnership with NVIDIA.
- 7:00 — Trend 2: Vertical Specialization: The rise of 'Industry Clouds' that tailor SaaS and PaaS capabilities to specific sectors like finance and life sciences.
- 8:50 — Trend 3: The Evolution of Cloud Security: How the explosion of security data is driving the adoption of modern architectures like data lakehouses.
- 12:30 — Future Outlook for Cloud Founders: Why the current macroeconomic climate presents a unique opportunity for specialized startups and talented founders.

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## Transcript

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