September 2022

State of Cloud Software

Spending

This presentation includes proprietary information of Battery Ventures

 Disclaimers
This disclaimer applies to this document, referred to herein as the “presentation.” This presentation is being provided for informational purposes
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strategies described in this presentation will be successful.

The information contained herein is based solely on the opinions of Scott Goering, Danel Dayan, Evan Witte and Patrick Hsu and nothing should
be construed as investment advice. The anecdotal examples throughout are intended for an audience of entrepreneurs in their attempt to build
cloud-focused businesses and not recommendations or endorsements of any particular business.

1
Demographics and
Macro Trends

This presentation includes proprietary information of Battery Ventures

 Cloud Software Spending is Not Immune, But It is Resilient

1 Cloud software spending strategies will continue to be impacted by economic uncertainty

2 Most CXOs are still interested in increasing overall spend, focusing on the right tools

3 Those that are decreasing budget are looking to do so via consolidation as a first move

4 Hiring for technical talent remains underserved, especially in infrastructure roles

5 Security and Data are the top of the priority list for many CXOs over the next 12 months

6 Finance and tech enterprises have a higher propensity to invest across entire tech stack

3 This presentation includes proprietary information of Battery Ventures

 Cloud Software Spending Survey Composition
• Battery’s Cloud Software Spending Survey saw participation from 100 CXOs representing ~$29B in annual technology spend.
• 58% of respondents spend $100M+ on cloud infrastructure, application software, data platforms, and ML tooling.
• 79% of respondents were from companies with 100-1,000 FTEs across finserv, tech, health care, and manufacturing.

Industry Representation Budget Distribution: Total Technology Spend Per Company

Financial Services 31% 42%

Technology 20%

Health Care 18%

29%
Manufacturing 10%

Retail & E-commerce 7%

Industrials 5%
13%
Real Estate 3%
9%
7%
Media & Entertainment 3%

Other 3%

$20-$99M $100-$249M $250M-$499M $500M-$1B > $1B

Source: Battery 2022 Cloud Software Spending Survey

Note 1: Industrial segments include construction, utilities, transportation, and warehousing.
4 This presentation includes proprietary information of Battery Ventures Note 2: Annual technology spend calculated based on mid-point of total technology budget.
 Impact of Economic Conditions on Technology Spending Strategy

67%

57%
54%
48% 48%
45%
Percentage of Respondents

41% 43%

33%
31%

15%
10%
7%

$20-$99M $100-$249M $250M-$499M $500M-$1B > $1B

More Conservative No Change Less Conservative

Total Technology Budget

CXOs are more conservative with their approach to technology spending and
allocation of budget in times of economic uncertainty.

5 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Technology Budget and Spending Trends

77%
71%
Percentage of Respondents

43% 45% 44%

41%
33% 33%
29%
23%

12% 14%
10% 11% 11%

2%

$20-$99M $100-$249M $250M-$499M $500M-$1B > $1B

Down >10% Down 0-10% Flat Up 0-10% Up >10%

Total Technology Budget

Budgets are less elastic than perceived: 54% of CXO respondents expect to increase their
total technology budget for 2022 despite more conservative spending strategies.

6 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Top Priorities for CXOs Planning to Reduce Budget

Responses from CXOs Planning to Reduce Technology Budget (N=11)

45% CXOs reducing budget are focused

on vendor selections above all else
Percentage of Respondents

27%

18%

9%

Vendor consolidation Reduce workforce Optimize SaaS licensing Other

CXO respondents are more focused on streamlining their vendor usage than
headcount changes or license optimization.

7 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Headcount Plan and Hiring Focus for CXOs

Plans for Headcount CXO Priorities for Hiring

48% Most in-demand roles revolve around core

47%
45% infrastructure and data engineering

Percentage of Total Respondents

Despite some hiring freezes,
43 39%
CXOs are still interested in hiring
for critical roles they need
33%
Number of Respondents

26

17%
14%
12%
9

2%

Increase Hiring Hiring Freeze Layoffs Data Security DevOps Full stack Data Back End Front End SRE Other
Engineer Engineer Engineer Developer Scientist Developer Developer

Hiring growth in data and security maps to CXOs tech-spending priorities. Engineers focused on building
pipelines and infrastructure are in higher demand than those building applications and analyses.

8 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Cloud Software Spending Priorities
Ranking of Cloud Software Areas that CXOs are Prioritizing Over Next 12 Months
Total Avg.
Ranking system where 1 is the company’s top priority Rank
Example Logos

Enterprise Security 8% 8% 10% 14% 11% 19% 31% 3.04

1

Data Warehouse 4% 13% 7% 13% 21% 20% 22% 3.22

1 1
Data Operations 6% 12% 17% 15% 18% 23% 9% 3.69

Application SaaS 13% 12% 22% 13% 15% 12% 14% 4.04

Core SaaS 18% 16% 16% 19% 13% 5% 13% 4.39

1 1
AI/ML Tools & MLOps 20% 20% 14% 14% 20% 8% 6% 4.59

Automation 27% 16% 12% 14% 11% 14% 7% 4.68

7 6 5 4 3 2 1
Rank

Data and security remain top spending priorities for enterprises. SaaS vendors that
improve workflows and increase automation are gaining adoption.

Source: Battery 2022 Cloud Software Spending Survey

9 This presentation includes proprietary information of Battery Ventures Note: Company logos include all current Battery investments that are relevant and are denoted with a 1. A full list of all Battery investments here.
 Cloud Software Spending Priorities by Industry
Ranking system where 1 is the company’s top priority
Retail & E-
Financial Services Technology Health Care Manufacturing commerce Industrials

Application SaaS 3.38 3.20 2.53 2.50 1.43 1.80

(Asana, Miro, Jira)

Data Warehouse 3.45 3.70 3.53 3.38 3.43 3.20

(Snowflake, Databricks1)

Enterprise Security
(Crowdstrike, Palo Alto 3.62 3.80 3.88 3.88 4.29 3.80
Networks, ZScaler)

Data Operations 4.62 4.05 4.24 4.38 4.29 4.00

(Collibra1, Matillion1, dbt)

Core SaaS
(Atlassian, Salesforce, 4.69 4.55 4.71 5.00 4.43 4.40
Zendesk)

AI/ML & MLOps

(HuggingFace, Arize.ai1, 5.14 5.30 5.82 5.63 6.00 5.60
Dataiku1)

Automation
(UiPath, Celonis, 5.34 5.45 6.06 5.63 6.57 6.60
Automation Anywhere)

Finance and Tech are investing broadly across the stack, whereas other industries
have stronger conviction on certain categories and modernization efforts.
Source: Battery 2022 Cloud Software Spending Survey
Note 1: Industrial segments include construction, utilities, transportation, and warehousing.
10 This presentation includes proprietary information of Battery Ventures Note 2: Company logos include all current Battery investments that are relevant and are denoted with a 1. A full list of all Battery investments here.
Software Adoption and
Procurement Trends

This presentation includes proprietary information of Battery Ventures

 Budgets and Buying Patterns Remain Unchanged for High-Priority Software

1 Despite slight slowdowns, vendor approval times remain intact for critical tools

2 Bottoms up motion playing a larger role at earlier phases of software adoption

3 Founders should continue to push for production deployments over dev/test environments

4 Security and ease of integration are top priorities for vendor approval, i.e., SSO, SOC2

12 This presentation includes proprietary information of Battery Ventures

 Enterprise and Bottoms Up Software Adoption

Approval Times for Enterprise Contracts Engineers Allowed to Self-Select Tools

Fully 82% of respondents

Percentage of Total Respondents

57%
indicated unchanged or
elongated approval

Number of Respondents
cycles.
26

86 No
25% Yes
74
16%

14

Self-Select/Install/Procure Tools Self-Select/Install/Procure Tools

Slowed Down Same Sped Up for Dev/Test Environments for Production

Most respondents note that enterprise contract timing have not changed, and bottoms-up
adoption is playing a larger role at earlier phases i.e., dev/test environments.

13 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Enterprise Procurement Strategies

Organizations that Procure Cloud Software from Early Stage (Seed, Series A) Companies
Percentage of Respondents

55% 57% 60%

67% 70%
74% 78%
Does not Procure
from Early Stage Cos

Procures from Early

Stage Cos

45% 43% 40%

33% 30%
26% 22%

Total Financial Technology Health Care Manufacturing Retail & E- Industrials

Services commerce
About 1/3 of companies procure software from early-stage companies. Regulated industries,
like finserv and health care, remain more conservative in their purchasing patterns.

Source: Battery 2022 Cloud Software Spending Survey

14 This presentation includes proprietary information of Battery Ventures Note: Industrial segments include construction, utilities, transportation, and warehousing.
 Bottoms Up Adoption Buying Patterns

Percentage of Companies Consuming Software Through a Bottoms Up Motion

86%
Percentage of Respondents Per Bucket

83%

70% 70%
67%
61% 60%

39% 40% Less Than or Equal to 25%

33% More Than 25%
30% 30%

17%
14%

Total Financial Technology Health Care Manufacturing Retail and E- Industrials

Services commerce

Over 30% of all respondents note that their company consumes more than 25% of
their software through a bottoms up motion.

Source: Battery 2022 Cloud Software Spending Survey

15 This presentation includes proprietary information of Battery Ventures Note: Industrial segments include construction, utilities, transportation, and warehousing.
 Priority Requirements for New Vendors to be Procured
Total Avg.
Ranking system where 1 is the company’s top priority
Rank

SSO 4% 11% 9% 15% 9% 10% 17% 24% 3.66

SOC2 & Other Compliance 8% 9% 10% 8% 9% 16% 14% 24% 3.70

Integration 4% 8% 16% 11% 17% 8% 16% 18% 3.89

SLA & Support 7% 11% 8% 11% 14% 22% 16% 9% 4.07

RBAC (Role-Based Access) 18% 9% 13% 10% 15% 17% 14% 5% 4.75

API Access 15% 22% 9% 15% 11% 14% 10% 4% 5.10

Deployment Options 23% 16% 15% 8% 8% 11% 9% 9% 5.18

Audit Logs 20% 11% 18% 19% 16% 4% 5% 7% 5.30

8 7 6 5 4 3 2 1
Rank

SSO, SOC2, and integration look to be top priorities, revolving around security and
ease of integration with existing workflows.

16 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Priority Requirements For New Vendors to be Procured for Select Industries

Ranking system where 1 is the company’s top priority

Finance and Information /
Insurance Technology Health Care Manufacturing Retail Industrials

SOC2 & Other

3.48 3.20 2.50 2.20 1.43 1.80
Compliance

SLA & Support 3.58 3.70 3.56 3.50 3.43 3.40

SSO 3.68 3.80 4.00 3.70 4.29 3.60

Integration 4.58 4.05 4.17 4.90 4.29 3.80

API Access 4.65 4.55 4.89 5.10 4.43 4.80

Role-Based Access 5.03 5.30 5.33 5.20 5.57 5.60

Audit Logs 5.39 5.45 5.78 5.50 6.00 6.00

Deployment
5.61 5.95 5.78 5.90 6.57 7.00
Options

Respondents across industries have different priorities for new vendors, e.g., health
care prioritizes SLA and support while finance prioritizes compliance.

Source: Battery 2022 Cloud Software Spending Survey

17 This presentation includes proprietary information of Battery Ventures Note: Industrial segments include construction, utilities, transportation, and warehousing.
Future of Cloud Software
Spending

This presentation includes proprietary information of Battery Ventures

 Public Cloud Vendors are Showing Growth Durability at Massive Scale

Public Cloud Vendor Annualized Run-Rate Revenue (US$B)

$220 44% 43% 43%
41%
39%
37% 36%

$156
$143
$136 $25
$123 $23
$115 $22
$101 $20
$95 $19 $52
$16 $43 $46
$15 $38
$37
$29 $31

$71 $74 $79

$54 $59 $64
$51

$0
Q4’20 Q1’21 Q2’21 Q3'21 Q4'21 Q1'22 Q2'22

n n n n Y/Y Growth %

Cloud giants have continued their strong growth trajectory over the last two or more
years, reaching a total revenue of $150B+.

19 This presentation includes proprietary information of Battery Ventures Source: Company filings and WallStreet Research
 We Are in the Early Innings of Cloud Adoption
Disruption Potential

87% 83% 79% 76% 72% 68% 64%

$1,244
$1,127 Disruption Potential (Ex-IaaS & Ex-
PaaS)
Enterprise IT Market Spend (US$B)

$1,018
$919 IaaS & PaaS
$833
$744
$698 Support Services
IT Hardware
Data Center Services
Infrastructure Software (Ex-PaaS)
IaaS
PaaS
2019 2020 2021 2022 2023 2024 2025

Cloud penetration is rapidly expanding with ample room to grow. In 2022, cloud
spend is expected to represent ~25% of the $919B overall infrastructure spend.

20 This presentation includes proprietary information of Battery Ventures Source: Gartner.

Appendix:
Security Budget

This presentation includes proprietary information of Battery Ventures

 Total Budget Size and Expected Spending Change for Security Vendors

31% 67%
62%

Percentage Respondents Per Bucket

55%
Percentage of Respondents

19%
37%
14% 31%
26%
9%
8%
7%
5% 5%
7%
1% 1% 3% 2% 3% 3%
1% 0% 1% 0%

Next 6 Months Next Year Next 5 Years

Down >10% Down 0-10% Flat Up 0-10% Up >10%

Majority of security budgets fall in the $1-5M range; 37% of respondents are
expecting to increase spending by 10%+ over the next five years.

22 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Company Priorities Within Security
Total Avg.
Ranking system where 1 is the company’s top priority Rank

Cloud Security 9% 38% 27% 26% 4.57

Data Security 6% 29% 40% 25% 4.66

Email Security 14% 25% 32% 29% 4.71
Network Security 19% 24% 27% 31% 5.16
Identity Orchestration and Access Management 18% 30% 32% 20% 5.26
Application Security/Developer Security 16% 35% 34% 14% 5.56
Authentication and Authorization 14% 33% 32% 21% 5.65
SASE 49% 31% 9% 12% 6.78
Logging and Observability 38% 32% 19% 11% 6.80
SOC/MDR/MSSP 46% 28% 10% 15% 7.26
API Security 38% 37% 20% 5% 7.42
SaaS Security 39% 35% 22% 4% 7.64
Compliance Automation 67% 25% 7% 1% 8.08
Asset Management 51% 34% 12% 3% 8.33
10+ 6-9 3-5 1-2
Rank

The transition to the cloud is causing enterprises to reevaluate and invest in security
solutions that meet modern cloud architectures and data types.

23 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Security Budget Allocation Across Categories
Higher spend score indicates a higher annual average percentage of budget spent Spend Score

Network Security 20% 61% 17% 2% 10.99

Data Security 19% 69% 12% 9.42
Cloud Security (Wiz, Orca, etc.) 38% 53% 5% 4% 8.60
SOC/MDR/MSSP 39% 49% 9% 3% 7.59
Identity Orchestration and Access Management 45% 49% 4% 3% 7.44
Email Security 39% 55% 5% 1% 7.41
Logging and Observability 51% 43% 5% 1% 6.63
Application Security/Developer Security 47% 46% 7% 6.28
Authentication and Authorization 51% 47% 3% 5.64
SaaS Security 72% 24% 4% 4.39
SASE 74% 26% 3.79
API Security 81% 16% 3% 3.63
Asset Management 78% 19% 3% 3.55
Compliance Automation 90% 6% 3% 2.59
<=5% 5-15% 15-25% 25%+
Percentage of Total Security Budget

Security replacement cycles are long as network security remains a top spending category among
security teams. Logging and observability budget comes from security, not developer tools.

Source: Battery 2022 Cloud Software Spending Survey

Note: Spend score is calculated as the weighted average of the provided range midpoint scaled by the number of respondents e.g., 5% for the 1-10%
24 This presentation includes proprietary information of Battery Ventures spend category; respondents that did not input a number are not reflected as 0% in the graph.
Appendix:
Developer Tools Budget

This presentation includes proprietary information of Battery Ventures

 Total Budget Size and Expected Spending Change for Developer Tool
Vendors
As much as 82% of developer tooling
30% budgets are <$5M as solutions have
been historically under-monetized. 69%

Percentage of Respondents Per Bucket

Open-source software has created a
vibrant ecosystem of developer tools but
there is a growing desire to increase 48%
17% automation and spend.
Percentage of Respondents

43%44%
15%

28%
10% 10%
7% 21%
19%
4%
2% 2% 2% 7% 6% 6%
2% 2% 2%
0% 0%

Next 6 Months Next Year Next 5 Years

Down >10% Down 0-10% Flat Up 0-10% Up >10%

Developer tools have historically been under-monetized. Majority of developer tool budgets fall in
the $1-5M range and 50% of respondents are expecting to increase budgets within the next year.

26 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Company Priorities within Developer Tools
Total Avg.
Ranking system where 1 is the company’s top priority Rank
CI/CD 14% 16% 28% 42% 3.95
Microservices 14% 35% 35% 17% 5.28
Testing 13% 36% 31% 20% 5.38
Code Repo 28% 21% 24% 28% 5.48
IDE 36% 15% 9% 39% 5.58
Build Management 19% 31% 41% 9% 5.73
Internal Developer Platforms 32% 19% 32% 17% 5.94
Security/Code Scanning 31% 26% 34% 9% 6.05
Feature Flagging/Deployment 40% 23% 28% 9% 6.37
API Development 35% 28% 28% 9% 7.00
Observability 45% 34% 17% 4% 7.51
Service Mesh 53% 31% 10% 6% 8.09
Alerting & Response 61% 25% 12% 3% 8.62
Planning and Collaboration 63% 21% 6% 10% 8.70
Environments 58% 26% 8% 7% 8.84

10+ 6-9 3-5 1-2

Rank
Speed, safety, and resiliency are the top developer tool priorities as enterprises continue to focus on getting code
into production reliably. AppSec and observability are shared responsibilities by development and security teams.

27 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Developer Tool Budget Allocation Across Categories
Spend
Higher spend score indicates a higher average annual percentage of budget spent
Score
Testing 24% 57% 13% 6% 10.77
CI/CD 23% 58% 16% 3% 9.04
API Development 43% 45% 6% 6% 8.52
Internal Developer Platforms 50% 33% 12% 5% 7.28
Planning and Collaboration 58% 31% 8% 3% 6.05
Deployment 53% 41% 3% 3% 5.96
Code Repo 56% 35% 5% 4% 5.74
Environments 60% 27% 11% 2% 5.74
Security/Code Scanning 47% 44% 8% 5.31
Microservices 55% 38% 8% 5.28
IDE 61% 28% 9% 2% 4.88
Build Management 59% 34% 7% 4.69
Observability 71% 24% 3% 2% 4.29
Service Mesh 80% 16% 4% 2.72

Alerting & Response 83% 15% 2% 2.62

<=5% 5-15% 15-25% 25%+

Percentage of Total Developer Tool Budget

Iterative development workflows (testing, CI/CD, and development platforms) have the highest spend
score as software development velocity continues to increase despite the current macro environment.

Source: Battery 2022 Cloud Software Spending Survey

28 This presentation includes proprietary information of Battery Ventures Note: Spend score is calculated as the weighted average of the provided range midpoint i.e., 5% for the 1-10% spend category
Appendix:
Data Budget

This presentation includes proprietary information of Battery Ventures

 Total Budget Size and Expected Spending Change for Data Vendors

31%
63%

53% 54%

Percentage of respondents Per Bucket

Percentage of Respondents

30%
12% 27% 28%
11% 11%
9%
8%
7%
6% 12%
3% 8% 9% 9%
2%
1% 1% 1% 1% 2%

Next 6 Months Next Year Next 5 Years

Down >10% Down 0-10% Flat Up 0-10% Up >10%

Majority of data budgets fall in the $1-5M range; 30% of respondents are expecting to
increase their spending by 10%+ over the next five years.

30 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Company Priorities Within Data
Top five priorities within data represent the Total Avg.
foundations of the modern data stack. Ranking system where 1 is the company’s top priority Rank
Data Warehouse 5% 2% 24% 69% 2.62
Data Lake 7% 12% 26% 55% 3.40
ETL 9% 15% 44% 31% 4.36
Data Pipeline and Query (real-time) 28% 25% 37% 10% 6.37
Data Observability 29% 39% 25% 6% 6.72
Data pipelines (batch) 35% 42% 22% 1% 7.43
Data Orchestration 38% 41% 16% 5% 8.00
Data Governance and Catalogs 50% 24% 17% 8% 8.52
Data Applications and Visualization 51% 27% 20% 2% 8.79
Caching 76% 19% 5% 10.04
Event Data 83% 13% 4% 10.62
Experimentation 92% 6% 2% 11.14
Synthetic data 87% 7% 3% 3% 11.61
Metrics Store 91% 8% 1% 11.71
Reverse ETL 84% 10% 5% 11.93
Notebooks 94% 6% 12.01
10+ 6-9 3-5 1-2
Rank
Companies are building a modern data stack with core components being cloud data
warehouse/lake, ETL/pipelines, and data observability.

31 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Data Budget Allocation Across Categories
Higher spend score indicates a higher annual average percentage of budget spent Spend Score
Data Warehouse 14% 31% 35% 20% 19.33

Data Lake 26% 43% 22% 8% 10.95

ETL 40% 44% 11% 5% 8.60

Data Applications and Visualization 54% 35% 10% 1% 4.31
Data Governance and Catalogs 91% 7% 2% 3.85
Data Pipeline and Query (real-time) 96% 4% 3.19
Data Orchestration 72% 25% 3% 3.18
Data Observability 74% 23% 3% 2.93
Experimentation 62% 15% 23% 2.28
Synthetic data 92% 4% 2%2% 2.18
Caching 84% 16% 2.05
Data pipelines (batch) 90% 10% 1.90
Event Data 90% 10% 1.90
Notebooks 91% 7% 2% 1.50
Reverse ETL 96% 4% 1.43
Metrics Store 98% 2% 1.38

<=5% 5-15% 15-25% 25%+

Percentage of Total Data Budget

Data warehouse has the highest spend score by far, serving as the center of the
modern data stack.

Source: Battery 2022 Cloud Software Spending Survey

Note: Spend score is calculated as the weighted average of the provided range midpoint e.g., 5% for the 1-10% spend category; respondents that did
32 This presentation includes proprietary information of Battery Ventures not input a number are not reflected as 0% in the graph.
Appendix:
AI and ML Budget

This presentation includes proprietary information of Battery Ventures

 Total Budget Size and Expected Spending Change for AI and ML Vendors

Of the AI/ML budgets, 84% are <$5M

23%
and 70% of budgets being <$1M.
Growth in spend is still driven by talent 59% 59%
19% vs. tools.

Percentage of Respondents Per Bucket

49%
14% 14% 14%
Percentage of Respondents

35%
31%
26%
6%
18%
4%
3%
1% 1% 9%
4% 5%
1% 1% 1% 1% 1%

Next 6 Months Next Year Next 5 Years

Down >10% Down 0-10% Flat Up 0-10% Up >10%

Market is still early but number of budget approaching $1M+ show growing interest
and 68% of respondents are expecting to increase spending within the next year.

34 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 Company Priorities Within AI and ML Tools
Total Avg
Ranking system where 1 is the company’s top priority Rank
Model Building 7% 17% 52% 24% 4.09

Data Cleaning 8% 25% 25% 42% 4.17

Data Collection 9% 22% 20% 49% 4.18

Model Training 10% 43% 35% 12% 5.04

Data Labeling 21% 32% 27% 20% 5.71

Model Observability 15% 47% 32% 6% 5.72

Model Evaluation 20% 44% 32% 4% 6.24

Python/ML Frameworks 35% 34% 15% 16% 6.36

Feature Store/Feature Engineering 41% 20% 25% 14% 6.55

Synthetic Data 40% 33% 16% 10% 7.03

Model Deployment 36% 38% 22% 4% 7.04

Real-Time ML 49% 20% 20% 11% 7.42

Notebooks 77% 13% 9% 2% 8.60

10+ 6-9 3-5 1-2

Rank

AI and ML core infrastructure is currently a top priority as many companies continue

to begin their journey with model building, data cleaning, and data collection.

35 This presentation includes proprietary information of Battery Ventures Source: Battery 2022 Cloud Software Spending Survey
 AI and ML Tool Budget Allocation Across Categories
Spend
Score
Data Collection 24% 45% 22% 9% 13.01

Model Building 18% 57% 19% 6% 11.79

Data Cleaning 29% 47% 16% 8% 10.87

Data Labeling 37% 52% 8% 3% 7.85

Python/ML frameworks 42% 48% 4% 6% 6.83

Feature Store/Feature Engineering 46% 35% 15% 4% 6.73

Model Evaluation 50% 35% 13% 2% 6.51

Model Training 46% 44% 6% 4% 6.25

Real-Time ML 49% 41% 6% 4% 5.87

Model Deployment 48% 39% 13% 5.32

Model Observability 57% 38% 4% 2% 5.03

Synthetic Data 63% 33% 3% 3% 3.53

Notebooks 65% 32% 3% 2.92

<=5% 5-15% 15-25% 25%+
Percentage of Total Data Budget

The highest spend score is found in core ML infrastructure that helps companies
start their machine learning journey, e.g., data collection, cleaning and labeling.

Source: Battery 2022 Cloud Software Spending Survey

36 This presentation includes proprietary information of Battery Ventures Note: Spend score is calculated as the weighted average of the provided range midpoint e.g., 5% for the 1-10% spend category.