Silicon Valley Company Opens Seattle Office
Snowflake Computing recently announced the opening of an engineering office in Bellevue, Seattle, expanding away from its Silicon Valley headquarters.
Run by former Microsoft executive Bob Muglia, Snowflake is a cloud-based data analytics platform that uses SQL to organize and analyze business data. The platform was ranked the number one cloud data warehouse by Gigaom Research, receiving an impressive score of 4.85 out of 5.
Snowflake plans to hire up to 15 engineers at its new Seattle office in 2017 and expects to eventually expand to around 100. Nationally, Seattle has become a central hub for cloud technology, with companies like Microsoft and Amazon placing headquarters there.
Snowflake illustrates how thinking long-term and investing in R&D is critical in the fast-moving tech sector. In 2015, the company raised $45 million in funding for R&D and business development. Muglia stated that data warehousing was, “Ripe for disruptive innovation, driven by the shift to cloud computing and the explosion of customer interest in data insights.” Snowflake’s vision was to, “Reimagine the data warehouse for the cloud era with a completely new product built from the cloud up that doesn’t require retooling and retraining.”
Companies like Snowflake are putting pressure on even the largest companies. They outperformed Google’s BigQuery and Microsoft’s Azure SQL for the title of Best Cloud Data Warehouse. They also price matched Amazon’s S3 cloud storage service, stating that price was a key consideration for technology officers. “All organizations are keen to harness the insights derived from more and more data… It all comes down to technology and the cost of storing that data.”
Today, many billions of dollars are being invested in R&D by technology companies in order to stay relevant. Alphabet Inc, Intel and Microsoft spent over $12 billion each on R&D in 2016 for projects like Waymo, Alphabet’s self-driving car technology. Just a decade ago, the list of highest R&D spending was dominated by automotive and healthcare companies.
Corporate spending on R&D in the US is at its highest ever. A study by Bloomberg found that large companies that spent more on R&D got the largest returns with faster market capitalization growth. It also discovered that older companies that invested in continuous innovation performed better over the long-term.
Want to benefit from the federal R&D tax credit? Contact Swanson Reed R&D Tax Specialists today for an eligibility assessment.