Does Snowflake have a benefit or a moat?
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From a 7 powers perspective, I suppose they have:
* Scale economies
* Switching costs
* Maybe cornered resources with their team? This one seems hard to say though.
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I’m beginning to think they don’t have any of those.
- the 3 cloud providers have larger scale
- medium.com/@larskamp/why- tells us that customers switched easily from Redshift to them, which means easy to switch AWAY.
- cornered resource: this is harder to say, but I suspect no.
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Yeah, I have a feeling that Snowflake has no moat, which is why the current hype confuses me. If I'm right, we should see their margins narrowing within the next 5 years (or a strategic acquisition before most people can see the writing on the wall).
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