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A Walk on the Sidewalk – The Six Five Webcast
by Daniel Newman | June 8, 2021

On this episode of The Six Five Webcast hosts Patrick Moorhead and Daniel Newman discuss the tech news stories that made headlines this week. The six handpicked topics for this week are:

  1. Amazon Sidewalk is a Big, Fat, Nothing Burger
  2. Samsung and WalMart Make a Deal
  3. Latest Earnings Report from HPE
  4. Cloudera is Going Private
  5. Splunk Releases Q1 Fiscal Results
  6. Announcements from COMPUTEX 2021

For a deeper diver into each topic, please click on the links above. Be sure to subscribe to The Six Five Webcast so you never miss an episode.

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Disclaimer: The Six Five Webcast is for information and entertainment purposes only. Over the course of this podcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such.

Transcript:

Daniel Newman: Welcome to this week’s edition of The Six Five Podcast. I’m your host today, Daniel Newman leading the charge with my bestie and co-host Mr. Patrick Moorhead of Moor Insights & Strategy, rolling out this podcast at the end of your Friday. And I hope you’re glued to your seat, and not leaving the office without a dose of The Six Five, because I mean, we usually do this on Friday morning’s, Pat, but we had to push it back because of the craziness of our schedules and the craziness that is The Six Five Summit. But Patrick, I did hear a rumor that the registrations were coming in so fast that it nearly blew up the reg site. Can’t hate that. This event is going to be awesome. All right, let me pause. Pat Moorhead, how are you doing this Friday?

Patrick Moorhead: I’m doing great. And whether it’s 5:00 AM or 5:00 PM, it doesn’t matter on a Friday, we’re going to crank out a Six Five, and I’m pretty sure people are staying on their computers longer just to watch this live. I don’t know.

Daniel Newman: Pat, I think for whatever reason that that is the deal that people just they stay, they wait and they say, I will not, I refuse to leave work today until I get a dose of The Six Five. And here is a quick reminder for everybody out there. This is episode 80, The Six Five six hand curated topics. We talk about them for approximately five minutes each. And the idea is lots of analysis, not a lot of news, a little bit of news, just enough. So you know what topic we’re talking about today? We’ve got Amazon Samsung, HPE, Splunk, Cloudera, and we’re going to talk about a few different companies and their announcements at CompuTax. Now, reminder, this show is for information and entertainment purposes only. And while we may be talking about publicly traded companies, we may talk about publicly traded companies earnings, please do not take anything we say as investment advice. And probably don’t buy AMC at this price. And again, not investment advice. All right, Pat, you ready to get started?

Patrick Moorhead: Let’s just dive in with feet first here, buddy. Let’s do this.

Daniel Newman: We’re going to start out talking about Amazon Sidewalk and the misunderstood narrative that’s going on in the media, the press, across the board right now. We’re analysts, we look at this space as through a lens of trying to be as neutral, as possible. Of course I think we’re both a little bit bullish by nature. So you’ll hear us giving positive assessments more than negative because we love tech and we want things to work. We want innovation to be good, but we try to look at things like I said, not through rose colored glasses and we try to provide when something’s not good, we try to tell you that. That’s what good analysts do. Sidewalk is an interesting one, so the press over the last few weeks has been giving a pretty difficult time to Amazon about the Sidewalk announcements. Now, as kind of just a little bit of background, the whole idea of Sidewalk is a community of mesh like networks.

That takes a little bit of the bandwidth that’s put off by all of these things in our smart homes to enable people’s devices, to stay more reliably connected. And so if everybody, for instance, in the neighborhood is using Ring doorbells or different Amazon based thermostats or security or Echos, they could just take a little bit, not even a little bit, I’m talking about, I think the entire amount of bandwidth that can be shared on a monthly basis is equivalent to about 10 minutes of high-definition streamed content. So you’re not talking about a lot. And the thing that’s going on right now is this is a new feature that’s going to be rolled out. And largely what’s going to happen is when it does roll out in full people whose devices are connected to the network will automatically be opted in for the time being. Now, all these publications, Pat, are out there basically saying don’t opt in or opt out immediately and are giving this kind of illusion that if people don’t opt out that almost like they’re not going to be able to get out later.

And I think what I wanted to take our time here to do, Pat, is just spend a few minutes talking about some of the kind of misinformation that’s out there. Look, every device that goes on the network creates a security risk, period. Every time that you buy an IOT or smart device, you are relinquishing a little, little bit of security. Even if you’re fully encrypted, you create a little bit of risk. And if you are allowing yourself to be part of social communities like with Ring doorbells, or if you’re part of Netflix, any of these things, all these things that get your data out there, your data is being used. Now we’re in this privacy era now where it’s kind of an opt-in versus opt-out discussion. But first and foremost, June 8th is the day that this thing toggles on. But the reality is, yes, you will be opted into it, but you can opt out anytime. That is your right.

So first and foremost, whatever they’re saying, if you don’t opt out on June 8th, you can opt out right, June 15th, you can use it a little bit. See if it’s a problem you can opt out. The second, the thing is the fact that the whole identity that, Pat, people were only getting a week to opt out, well, not really true either. I believe the announcements Sidewalk came out months ago and the company has in fact verified that it sent emails as early as November of 2020 to Echo customers, to notify them that they have the right to opt out of Sidewalk. Ring users, in fact, have in some cases already been opted in and are using it and life has gone on, and I have not heard yet of any significant breaches that have come as a by-product of these beta users of Sidewalk. And the one other thing, and like I said, I’m going to lead on this topic and everybody out there I’m going to sometimes take more paddle.

Sometimes take more. I’m sure you’ll have some ads here. The security aspect of this is that there’s so little available data. And there are so many layers of security at the application at the hardware and the security level that people are making it sound like this, making your network available, this to me is no more making your network available than having an SSI ID that someone can drive by your house and see which by the way is almost every house on the planet. Look, if somebody’s dumb enough to not update their password and log in configurations, your network becomes vulnerable. There are more security layers that are inherently baked into these IOT smart devices, because Amazon is actually doing it in the cloud and protecting this and making this little partition of data merely available to those locally, and in a secured way, it just isn’t that big of a security risk.

Now my last thing, this doesn’t mean it’ll never get hacked. Okay? The government gets hacked, big enterprises get hacked. There’s a chance someone might hack your Ring doorbell. They might be able to see your camera and there might be some sort of disruption of service that is entirely possible. But the reality is, Pat, I think these are more fear-mongering stories than reality. Sure, amazon is trying to get more data. Every big tech company on the planet wants more data. I spent five minutes now, straight talking, and all I’m going to end on is saying, this is a nothing burger.

Patrick Moorhead: Daniel, you did a phenomenal job of breaking that down. And I am glad you took all the oxygen out of the room. No, you did a great job. You did a great job doing it. And I contrast this to air tags, right? Air tags, that theoretically, I can stick an air tag in your backpack and I can track you. Where was the freak out on this, Daniel? Apple didn’t even give you a chance to… They’re automatically opting you in to air tags. And oh, by the way, if you opt out, you can never track your phone, okay? So you’re losing a critical tool to find your stuff.

So what is it about Amazon that’s different from Apple? I have no idea. And we saw very certain freak out, a very similar freak out when it came down to another product, the Amazon always home cam where people were afraid that it was going to be a drone that was going to go through your house and go through your home and spy on you when you were sleeping.

It would just open your own door and walk in and take videos of you while you were sleeping. So, I don’t know. And Daniel, you hit it on the head. Nothing is unhackable given time and resources with country’s resources you can get in. But I look at the security that the three layers of security that Amazon put in, I also see the trial that they’ve been rolling this out for a while. I got a notification months ago and yeah, I opted in to everything. Do I know the risk that I’m taking? Absolutely. But do I like the benefit of being able to troubleshoot when my wifi goes sideways or the ability to track my dog in somebody else’s neighborhood? Yeah. That value proposition sounds pretty good. So Daniel, great job.

Daniel Newman: Yeah. Just keeping… Just staying connected, buddy. Just staying connected. Nothing burger I’m going to reiterate that, it’s it made for a bunch of great headlines. All right, let’s go to the next one where I’m going to give you the floor. And I will probably only have a few things to add, but big week, this week for our friends at Samsung big win, tell a little bit about this Walmart deal.

Patrick Moorhead: Yeah. So I think most of us consider Samsung Mobile, a consumer play, right? It’s hard not to with the best camera in the industry with the S21, with kind of lower end lower priced devices that it has, but it has a very robust commercial business. And a lot of that is due to Knox Security, which Samsung calls defense raid security that they harden their Android with. And they also have special designs, for instance, you can throw against the wall that are hardened. Try to do that with your iPhone, by the way. Hardened against getting beaten up and having water poured on them or having dust. Their tablets, they even have a tablet line that has replaceable batteries, which if you’re a police department and you don’t want to put something on a charger and just want to change the battery in it, it’s a much better solution.

So, day one, to my knowledge, the largest mobile deal I have ever heard of with Walmart’s 740,000 XCover Pro smartphones. And not only can what Walmart calls associates, they can use them at work for scheduling, clocking in, using push to talk, “Hey, I’m out of maple syrup on aisle 17. Can you check the back for me?” And also they’re integrating this thing called Ask Sam, which is a voice assistant, which is, “Hey, Sam, can you tell me if we have any maple syrup available under this brand?” And it will basically come back and tell you things like stocking right on the XCover Pro, has an optional QR code reader that when you want to do a cycle count and see, okay, that computer tells me I have 10 life rafts over here, and is it actually there, you can scan it.

So, that’s pretty cool. So when it comes to a frontline worker use, and there’s actually more workers can actually use these at home for their own personal devices as well. So, hats off to Samsung for this, and also hats off to Walmart for giving its associates a really cool phone that literally you could throw against the wall and it will still keep taking it. I think this is a really cool implementation of not only frontline workers that you and I have been researching so much, but also the ability to attract employees. Right? You get a free phone if you’re a Walmart associate.

Daniel Newman: Yeah. I think that you can’t under estimate the value pack in companies starting to outfit more of their teams with valuable technology. I mean, look, high-end phones and laptops have long been something that if you’re a knowledge worker would be part of the gig, but a lot of people working in frontline type jobs didn’t get these devices. So, when these ere initially brought into the limelight, I remember, I think the rollout of this thing was at NRF a couple of years back, I was in New York for that, when they rolled out the partnership announced these new devices, they also did a pretty interesting partnership with Microsoft Teams if I recall with these devices. But I mean, I remember a lot of the positioning being, they would be devices that can be shared. Multiple employees would kind of come in and out log in and out and use them.

What I really like here is seeing that the company is seeing the value in giving these to every employee. To me, it feels like a bigger commitment and it’s really good to see kind of how this is going to work in the wild in such a tremendously large use case Pat, so big win for Samsung Business. One of those use cases, I think we’re all kind of waiting to see, could they close a deal this big? Was it going to get past like the doc? I still remember the era of the Nextel, and this is kind of that thing for the modern frontline worker. And now, instead of having just a phone with a walkie talkie, though, they literally have a super computer in their pocket that can do everything in anything, and by the way, it can carry on so they can take it home and TikTok and Snapchat and do all the other good stuff.

Good one there, Pat. Good catch. Good story. Congratulations, Samsung. Walmart, I’m sure I’ll see you soon for something. All right. Let me drop into the next one, Pat, HPE followed Cisco and Dell and ISG, and was the third of kind of the big it OEMs over the last few weeks to report it’s quarterly earnings. And this to me was a big one, was a wave where I had come out early and said, “This is going to be the quarter where on-prem infrastructure returns to the black.” And I am one to often ignore when I make inaccurate prognostications, but I’m never one to forget, to make a victory lap when I get it right. So I predicted a high single digit percentage of growth across the board. And by the way, I think Cisco is around seven. Dell was around the same and Hewlett Packard enterprise came in at 11, but I want to say it’s nine because you had to adjust for constant currency, which by the way, I only adjust for that when it helps me, and in this case it did.

A couple of things there that I really called out from the earnings, Antonio Neri’s remarks and comments. One was the growth wasn’t heavily weighted to one part of the business. Now the company’s business is heavily weighted to compute and storage. That’s where a lot of the revenue, I think it’s about two thirds, but if you go across all their segments, they had Edge, IOT, HPC, storage compute, and their services business, and then of course financial services, every part of the business grew except financial services. Not only took a very small loss, but actually it was up on margins, but really solid growth at the intelligent edge. A really good result from the business from compute and storage. HPC had a very strong number and GreenLake came in at, I believe 30%, or as a service.

Now, everybody remembers that Antonio Neri came out almost two years ago, said by 2022, the entire HPE portfolio would be available as a service. Now I’m holding him accountable to this now because we are one year, not even away from this promise. And I will say the company has done a good job. It has diversified a lot of products. And I believe that its upcoming discover, Pat, will be announcing more services that will be coming into that family. We’ll have to wait and see, but the point is definitely ramping, as a service, definitely ramping up its hybrid cloud offerings, trying to really move to this annual recurring revenue model. And I thought it was a pretty robust result for the company. Overall, my impressions, this is still a company in transition. The market wasn’t particularly jazzed. The stock didn’t shoot up from this result.

But again, it has gone up a little bit into earnings. I continue to say, this is just the trend right now. Nobody’s acting on the news. Everybody’s acting on the rumors. It on-prem is up. I envisioned this as to continue to happen. And so before I turn it to you, I’ll just say the biggest thing I’m watching is that recurring revenue number, the company, in order to stabilize and prove they are a concept needs to show that it can grow, Neri said 30 to 40% compound over a multiple period of time was going to get the company to where it needs to be. So, as we’ve talked about with Pat Gelsinger, as we’ve talked about with our friend, Jim Anderson at Lattice, I’ve become a huge fan of say-do. If he says he’s going to do it, hope he does it. So good quarter for HPE.

Patrick Moorhead: Last quarter, when I got to talk to Antonio, I asked him about growth and he said, “Well, watch the future. Watch the future.” And sure enough, they cranked out and you and I look at it a little bit differently. I look at gap, you don’t, you look at non-gap, which I understand because that’s what investors look at. But 11% revenue increase the first double digit revenue quarter since 2018, which there’s two ways to look at that. The first one is to say, “Oh, my gosh, that’s incredible.” The other way it says, “Wow, you had a difficult couple of years”, but here’s the deal, they never committed to anything over single a digit here.

So hats off to HPE. What blew me away, Daniel, was the 10% on compute. And some people had thought that HPE was getting out of general purpose servers. Well, you look at the profit dollars that came out of that, that 10% of what they call their core business of compute and that’s in contrast to growth. Super impressive. The other thing that was impressive was free cashflow. Almost $370 million of free cashflow out there. And then what did the company do? They raised free cashflow and EPS outlook. And like you said, Daniel, they were rewarded with an indifferent wall street.

Daniel Newman: Well, in total fairness, though, Pat, Zoom grew 191% and the stock didn’t go up either. So and yes, I know they grew 369% the quarter before, but we really have hit this point where I don’t know if anything goes up for the right reasons anymore. So we try to look at the fundamentals, the technicals, the strategy, the business, meet the technical innovation with the numbers to say, hey, are these companies committed to their truth? So I hope that’s what you, as an audience hear, when you hear us talk. If we could predict what would go up or down, we wouldn’t be doing this podcast. I’m just being honest to you. We’d be doing something else. So let’s talk about Cloudera, Pat. I had to take a call this weekend on Memorial Day, because something big was about to break. I’ll let you break it.

Patrick Moorhead: Yeah. So I think you and I both talked to the president Mick at Cloudera and it was a big news that’s essentially that Cloudera is going private being acquired by KKR and CD&E for $5.3 billion. That’s about a 24, 25% adder to what the stock was currently trading at. And I think it’s a great thing. And let me tell you why. So, first off Cloudera invented the whole concept of big data with Hadoop. Now they fully grown up off of Hadoop. They’re not married to it. We’ve got Spark. And the first company that had a full end-to-end data life cycle product. First came out on-prem. And then what we saw in the last 18 months was they brought out a CDP Private, and that’s the private cloud version of this and CDP Public, which essentially means you can manage your data, holistically, whether it’s on AWS, Azure or a Google Cloud.

And the only thing that they hadn’t hit yet. And by the way, even though CDP is relatively new, they weren’t offering a SAS product and there are so many comparisons, right? To a snowflake as an example, that is cloud only, so what this go private move is going to enable is for the ability to pull in the pits for a little bit and build out their SAS property. And they made two acquisitions, one was Data Coral, and the other one was Khazana that are two very young high-flying companies that enable them to get, I wouldn’t say immediately in, into an enterprise SAS play, but gives them some key building blocks to get there. And quite frankly, I don’t think that wall street would have enough patience with them to give them enough time to build this out. Because I think wall street was kind of thinking, “Hey, we gave you guys patience to get into the public cloud”, right?

And then even though they just finished that build out about three months ago, they would likely have run out of patience. And the key to enterprise SAS, and the reason why that’s so important at the Cloudera in particular is does two things. First of all, it enables a much larger Sam or the addressable target market in that you can go to smaller companies who don’t have data scientists, you don’t have DBA’s right, who want the driving to be left to somebody else. And the other thing it does is it takes it to new types of users inside of any type of enterprise, not just a data scientist or a complete data jockey.

How about somebody in their department that has to do something with data, make decisions based on that data, or put together presentations for executives who can make decisions off of that data. So it expands their addressable market in two ways. And I can’t wait to see what they do. It’s not going to be easy. It’s going to be hard, but listen, they’re executing. And there’s a lot to say for execution out there. And what doesn’t get talked about a lot is Cloudera has exabytes of data with the fortune 500 already under management inside of a cloud era.

Daniel Newman: Yeah, absolutely. You covered a lot there, Pat. I spent a little time talking to some different reporters on Tuesday when the news broke and I kind of had the same story as you, I basically said the company needs runway. Wall street is not going to be patient with the transformation that Cloudera needs to make Cloudera needs to move to a more snowflake like model for adoption. Again, the hybrid thing works. It doesn’t have to be pure cloud, but the acquisitions it’s making makes it more SAS like easier to adopt more low code, which is part of this acquisition as well. What can a, as Satya Nadella kind of called a creator do in the data world, to be able to say, “Okay, I’m going to use tools from Cloudera and I’m going to be able to use them because I understand the business, not because I’m a machine learning scientist”, and that was the big thing I really took away.

But Pat, I see a little EMC-esque here in the sense of what Michael Dell did when he went private. I won’t give this the same credence as a company the size of Dell. But what I will say is there was something very strategic about giving it some runway, some time to identify its strengths, get it story together, grow its customer base, improve its margins, grow revenue, come back public again. I would be very surprised if that isn’t in the cards and that we won’t see Cloudera’s ticker once again on an exchange in the next few years. But I would say very reasonably two or three years before anything like that would be likely to happen.

Patrick Moorhead: Yeah. I mean, there was a ghost shop period to here and there are cloud native companies out there, huge ones that need data on prem. Google Cloud is one of them. Google Cloud is cloud native and they’re not managing much data at all on prem. I’m expecting Google Cloud to be kicking the tires.

Daniel Newman: I asked about that. I would say the group at a KKR and there’s a CSNK would have been very confident that this deal will go through before putting a shop deal into it. But at the same time, everybody now knows, the market all knows, but are there really secrets? Is it really a secret? I mean, there’ve been a few times, like I said, I saw the action on the Cloudera ticker happened on Friday after hours. I didn’t know what it was, but it went up a bunch and I saw moving after hours and I’m like, “Hmm, what’s going on here?” I thought they might be acquired. I thought they might be getting acquired. And then when I got the call about meeting, I’m like, “Oh, maybe I’m going to hear about them being acquired.” So big news a big week for Cloudera. Let’s talking about another company that announced some earnings that’s in a interesting impasse and its existence, and that’s Splunk.

Splunk’s the data to everything platform. Big in IT, Op Sec, Ops observability, super fast growing one of the fastest companies on the planet to get to 2 billion in recurring revenue. Basically it announced its first quarter of 2022. The company is in a major transition itself. So we talked about it was an on-prem company that had IT Ops services, it’s moved its model to Splunk Cloud that’s its strategy right now. It grew its ARR in cloud 83%, this quarter, Pat, to 877 million. Its overall error has now grown 39% year over year to 2.47 billion. Cloud revenue was up 73% total revenue for the quarter up only 16%. Now a couple of interesting takes on this one company still not making money. And this is kind of spooking some people out there it’s loss has actually got a little bigger this quarter on a year, over year basis.

Now my story and I’ll stick to is the company is doing very well. It grew 99% to 203 customers that have their cloud error above a million dollars. So they are growing very quickly. They had 537 customers doing over a million dollars a year in recurring revenue. But the cost of scale is definitely, this continued need to scale is the big key here to turning that corner, I think, largely the company is comfortable with showing losses on a short-term basis in order to get to that scale of top line revenue, to become the company they want to be. It made more acquisitions this quarter, including True Star security acquisition. For me, I’m really looking at the durable growth I’m looking at are they growing the ARR and what rate are they growing the ARR? And then I’m looking, Pat, at are they growing their big customers?

Are they getting those million dollar wins? With Zoom, I look at the a hundred thousand dollar customer ad. For Splunk, I’m looking at million dollar customer ads. You’re talking about a system that’s basically managing the entire data ecosystem of a company. And that is what Splunk is doing on a regular basis. They’re showing the right trajectory. They’re winning new, big named customers each and every quarter. On a global basis their revenue is being pretty well diversified on a go forward basis. The company’s continuing to grow, once again, I’ll point out street was not happy with these results. Did not give it a lot of positive vibes. I believe the stock was down about 10 bucks on the day following and that’s…

It was trading at like 110. But the point is is that this is a company in transition, completely shifted its business model, is growing revenue very quickly needs to get profitable, or it needs to continue growing at an even faster clip, in my opinion, to satisfy those investors in the market, but in the right space, Pat, I think you’ll agree when I send this over your way, observability is hot. How your apps were running, how your data is being used, how secure your environment is. People are paying a ton of attention to this competition is heating up, but Splunk really is the company, well the name people love it or hate it. It is the company that kind of is, it’s synonymous with observability and IT and SecOps.

Patrick Moorhead: Yeah. It’s interesting that we talked about Cloudera and Splunk on the same day Splunk, has a potential risk to fall into what, what Cloudera did, what Cloudera fell into with Hadoop as looking at, as the old guard, right? There are companies like Observe out there that are leveraging snowflake that are going after observability tools to try to one up companies like Splunk. So that’s what I think that investors are looking at is, hey, are they going to make the turn and be too big to fail? Now I have to say that Splunk is worth four times as much, almost four times as much as Cloudera right now, but it’s something they need to look at. And I do like what they’re doing and what they’re doing is leveraging core areas like security, like observability, that absolutely makes sense.

And when you, when you start to amass large fortune 500 customers like this and they are on, I think, a roll here, not that it makes you too big to fail, but enterprises don’t like to change when they get into stuff. It’s not like they’re selling to a ton of cloud native companies who can flip on a dime, or switch an API. This is, I think you used the word durable type of revenue that keeps paying off and smokes key competitors. I hear their value proposition, and I bring up Splunk. They talk about it as being cost and cost is important and Splunk, it gets looked at some times as the expensive option, but that’s not durable. That doesn’t mean much to me from a… Very rarely is cheaper win in enterprise. So we’ll have to see.

Daniel Newman: Absolutely, great points. Got to move on to our final topic of this week’s edition of the Six Ten. You and I, once again, cannot resist to say more saying less sometimes just isn’t possible when there’s so much to analyze, Pat, let’s finish up talking about a show that you love. I love it too, but I don’t know if I love it as much as you do COMPUTEX. Pat, we were up in the middle of the night, listening to Mr. Jensen Wang, take Q & A from us. Very, very nice of him to allow us to have 10 o’clock conference calls, but big announcements, AMD big announcements, NVIDIA big announcements, Intel, had a keynote talked about some of their announcements as well. I’ll give you the run of show here and I’ll close it up and take it home.

Patrick Moorhead: Yeah. There’s a ton to talk about. And it’s funny when I put this on the agenda, I was trying to look for what are some themes that can tie all of them together. And it was actually really hard on the three companies, but so let me just go down and just give you my quick takes on probably 23 announcements between AMD, Intel, and NVIDIA. So first off I would say AMD had a very strong showing. They came out and they, Lisa Su blew people away when, when she said, “Yeah, oh, and by the way, we’re in the Tesla model S and the Tesla model X for infotainment”, everybody’s heads exploded, because nobody, I mean, there were some rumors, right? And Tesla on an earnings call made a comment that they were even talking to AMD, which by the way, they ended up giving business to NVIDIA when they said this, but you knew something was up there and sure enough, that they’re in there.

Oh, and by the way, Samsung is leveraging Andy’s mobile IP. And the key part here was they were going to add ray tracing. So imagine a smartphone in the future with ray tracing for gaming. Again, another head’s exploding. I would say the biggest news out there though, was a program called AMD Advantage, which is a designed framework to help gamers, to simplify the purchase process for Nopa gamers, AMD has set up a bunch of specifications for performance, for durability, for battery life, all the things that the gamers would want. Performance is important, but if your fan is whirring all the time and your lap is on fire, that’s not cool either. So Intel has Evo and Evo is really targeted on the go professionals where AMD advantage is focused on a notebook of gamers. AMD then came out with their 3D Vcash, which is essentially the first instantiation of AMD doing something that looks a little bit like Intel’s Foveros.

And essentially, instead of putting a process around a processor, they’re putting cash memory to increase performance, and then you have Intel. Intel came out with a five gigahertz thin and light, that was typically only in thick and chunky and high performance notebooks. Intel also came out with a 5G M.2 card interesting, in that Intel is working with media tech, which we knew, but the M.2 card is official. And they talked about OEMs that were picking that up. And finally, NVIDIA brought out King Kong biggest graphics card in the industry. NVIDIA calls it the 3080 TI. I call it the 3080 TI, but an 1199 card, $1,199 gaming card with just nutso performance, final announcement, NVIDIA certification for the DBU, which is the data processing unit, which is an offload networking unit and NVIDIA certifications for ARM-based CPU’s with NVIDIA data center GPU’s. And by the way, I tried to find a theme across all those, Daniel. Maybe you can do it. Sure. There was some gaming similarities and stuff between AMD and NVIDIA but that’s about all the similarity and all of the themes that I could find.

Daniel Newman: Yeah, I thought the AMD triple X 3D stuff was very interesting. I mean, the model X and model S stole the show, that was the biggest announcement got everybody’s super excited. Everybody kind of thought that Tesla was going to do Tesla was going to build its own control its own, do its own everything. And so I don’t know what that says about Tesla, but Elon Musk is a fiscal booger. He did have a very public breakup today with Bitcoin, I think, we don’t know because he only uses emojis now. He is the mean stock of Twitter personalities, but a huge move for AMD, obviously, because to some extent they weren’t really, even in the conversation about vehicles lately, they’ve been kind of out of that conversation. So there goes Lisa Su, which by the way, will be speaking at our Six Five Summit along with actually Jensen Huang, Simon Segers, and Pat Gelsinger.

You’re going to hear from all the CEOs of all of these companies. So you better be attending, hit that registration button. We’ll put it in the show notes, and a couple of other things that just really quickly caught my attention. I think the reiteration from NVIDIA on the DPU, I mean, I think that’s still really being absorbed. So they spent a lot of time talking about Bluefield, listen, you’re talking about network offload this isn’t a small deal. You’re going to make every CPU, every general purpose CPU, every processor in the data center, the edge, more powerful by offloading it from having to do things it’s not effectively been designed to do. And then the things that we need our CPU’s doing it’ll do better.

And so they’re not the only ones doing it, but they are arguably the best at marketing it, like Marvell is doing some really interesting stuff in this space, for instance, Nitra from AWS is another one in that space. Last thing base command was pretty interesting to me. I liked the whole idea. Somehow NVIDIA is finding a way to create subscriptions and recurring revenue. They did it originally with G-Force the gaming subscription service, but the high-end enterprise data science, they are now leasing out super computers for about 90,000 a month. You can get a Nvidia net app baked AI, data science, analytics, application development suite of tools, and you don’t have to buy any hardware. So only 90 grand a month, Pat.

Patrick Moorhead: Isn’t that crazy that NVIDIA got into IEZ and nobody wrote about it. I looked for it, but they are in the IEZ game and it just blew me away.

Daniel Newman: The cloud native subscription based supercomputer period. It’s and it’s also a full stack it’s hardware, it’s software it’s frameworks, and you can rent it. And so they did the ampere, they 8100 the DGX that you could rent the unit for your dataset. But this is like the full suite. This is the whole stack. I mean, now they’re going to start shipping a data scientist to your door anyways. This is a big one, Pat. I’m going to wrap it up there. What a week. What a big show. We could easily spend half an hour, 45 minutes. I’m going to close this show like a closeup, every show. And I’m just going to say, have you heard that Pat and I, Futurum and Moor Insights are doing an event it’s called The Six Five Summit go to thesixfivesummit.com.

We’ll put it in the show notes. Did I say we put in the show notes? We’re going to put it in the show notes. Be there. It’s going to be amazing. Over 50 session, live Q & A’s each day over 15 Presidents, and CEOs of some of the world’s largest tech companies headlined by Intel CEO, Pat Gelsinger. But the lineup is amazing. So we hope to see you there. But for this episode for Friday, for number 80, Pat, it’s time to say goodbye, so say goodbye.

Patrick Moorhead: Take care, everybody.

 

About the Author

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio