Snowflake, a cloud-based data-warehousing company, skyrocketed, with an IPO that surpassed all expectations, followed by a first day of trading that more than doubled its share’s value, showcasing the growing importance of data in today’s digital economy.
Snowflake shares made their debut at $245/ share on their first day of trading, more than double the IPO price. This not only represents a valuation of $67.9 billion but also the biggest tech IPO of the year.
What is Snowflake?
Snowflake is a modern data warehouse that takes a fresh look at solving for a lot of issues that a traditional data warehouse may have.
Snowflake solves the problem of having large amounts of data by scaling your storage independently from the actual processing of that data.
The ultimate benefit of a data warehouse like Snowflake is that it allows for a cloud-based option where you simply sign up for an account, and you are not going to be billed until you use it for the storage and query aspects. This decouples the infrastructure aspect and helps the company manage its cost structure since cost is based on actual usage of the system.
Snowflake provides excellent query speeds, and its system supports both structured and unstructured data, so you don’t have to sacrifice performance for flexibility.
Why is This IPO Important?
The tremendous interest this IPO generated among investors is a testimony to the growth of cloud-based data solutions. The automation across all the industry verticals is producing an impressive amount of data every second.
In the modern age, there’s a lot of data that needs to be collected, structured, and analyzed in order to deliver actionable insights. Based on these insights, companies make data-driven decisions that have a real impact on the direction of the business and also predict future occurrences.
This led to a major challenge for every company: how to store all that data? Traditional storage is expensive, difficult to deploy and scale, and costly to maintain.
Here’s where Snowflake comes into play. Providing the possibility of scaling your data storage capabilities in accordance with your needs via a cloud-based service placed Snowflake at the center of a booming industry.
Companies have also realized the growing importance of data analytics. According to new market studies, the global cloud analytics market size is expected to grow from $23.2 billion in 2020 to $65.4 billion by 2025, at a CAGR of 23.0%.
Increasing data connectivity through hybrid and multi-cloud environments, the cost benefits of cloud-based analytics solutions, and the growing trend of digitalization and massive rise in big data, are the major factors adding value to the cloud analytics offerings. This is expected to provide opportunities for enterprises operating in various verticals in the cloud analytics market, according to the same study.