These cloud platforms enable direct ingest of data from disparate sources and house toolsets for data cleansing, prep and aggregation. Additionally, they provide an ecosystem of third-party tooling to enable machine learning, automated training and visualizations. This removal of data silos and ecosystem of tooling risks rendering the Alteryx platform irrelevant. At minimum, as enterprises migrate data onto these platforms, they could siphon off some use cases that might have represented enterprise up-sells for Alteryx.
Then he goes on to recommend ‘pre-IPO write up on SNOW by Muji at HHHypergrowth.co
It is difficult for me to draw conclusions from the Poffringa article on the impact of SNOW on future prospects for AYX except that AYX needs to be alert to the speed of migration to the cloud.
AYX emphasizes as selling points, improvement in top and bottom line growth, operational efficiencies , savings in analyst hours and upskilling attendant upon the enabling of “citizen” data scientists…
In the quarterly report and elsewhere the CEO of AYX notes the fact that many (most ) of his customers have not stored their data in the cloud but many do and he emphasizes that he believes that data storage will always be a hybrid phenomenon and that AYX is preparing to service cloud customers as they appear. AYX has some cooperative agreements with SNOW and it seems correct to assume that AYX will be able to incorporate data processing using the SNOW data warehouse and data lake when it becomes necessary. For now given Covid and the business slowdown the focus will be on existing customers and the methods they employ.
Poffringa makes the following argument.
So, in this regard, Snowflake isn’t a competitor to Alteryx per se, as some analysts keep asking. However, I think the right question is whether the ecosystem that Snowflake enables creates alternatives to Alteryx. That is the key consideration going forward. If enterprises continue to converge their data into a single instance on data cloud platforms, like Snowflake or even Databricks, does that supersede the position that Alteryx currently enjoys (which assumes enterprise data is in silos)?
So he raises the question as does muji, at least insofar as I am able to comprehend. Clearly AYX will have to take steps to deal with in-cloud data processing vendors, but why would anyone assume they would not be able to do so? It is beyond me to try to answer this question.
Again I refer to Poffringer:
At this point, it is too early to draw definitive conclusions about direct impact of centralized data clouds on Alteryx’s business, but it is something that we investors should monitor closely,/
So those of us who still have an interest in AYX have to watch this one.