Cloud data warehouse vendor Snowflake’s explosive IPO, likely the biggest software IPO, accentuates the strength of the market for cloud data warehouse services and indicates that tech giants like AWS, Microsoft and Google face viable competition in the fast-growing arena.
Snowflake’s shares on Wednesday were listed on the New York Stock Exchange under the ticker symbol SNOW with an initial price of $120 a share, valuing the company at more than $33 billion.
The cloud data warehouse vendor, based in San Mateo, Calif., was founded in 2012 and had raised $1.4 billion in venture capital funding. The company’s last funding round was in February, when Snowflake raised $479 million from investors including Salesforce Ventures.
The IPO is seen by some industry watchers as a testament to the vitality of the data warehouse market, which has been moving quickly to the cloud and now is largely dominated by the cloud giants.
Rivals are bullish on Snowflake IPO
“Snowflake‘s IPO validates what we all know: The market for data warehouses is large and growing,” said Neil Carson, CEO of data warehouse vendor Yellowbrick. “We share a common vision that data warehouse modernization is important, and we are excited to