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We Build for the Future – The Six Five Webcast
by Daniel Newman | June 2, 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. Key Announcements from the Microsoft Build 2021 Event
  2. NVIDIA Keeps Up Its Record-Breaking Run in Fiscal Q1
  3. Latest Earning Report from Salesforce
  4. Oracle Cloud Infrastructure Announces Ampere A1 Compute Platform
  5. The Latest from the Google Cloud Summit
  6. Record Earnings Report from Dell Technologies

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:

Patrick Moorhead: Hi, this is Pat Moorhead with more insights and strategy. We are here for another Six Five Live Podcast. I am here with my amazing, incredible, and almost actually one day beyond 40, Daniel Newman. How are you, my friend?

Daniel Newman: Yeah, I like it. Did you say credible or incredible? I like the “in,” at the front of credible, but I’ll take you either actually right now.

Patrick Moorhead: Well, you are pretty incredible and credible. I think your face was on a video a couple of times in the past couple of days. Anyways, let’s dive in. For those of you who aren’t familiar with the Six Five Podcast, we do six topics for around five minutes each and do a little on the front, little on the end here, for about 30 to 40 minutes.

We know you could find the news anywhere, so what we try to do is do the analysis. We might sneak in a little news to actually describe what happened, but we’re all about analysis. The other thing I’m going to add is we’re going to talk about some earnings announcements today.

Please do not take anything Daniel and I say as investment advice. This is for educational and hopefully entertainment purposes only.

With this, my friend, let’s jump in. We are talking Microsoft. We’re talking Google, Oracle, Dell, Salesforce, and NVIDIA. Big, big, huge companies. Why don’t we jump in with Microsoft Build? Wow, what a week. Build is targeted to developers, which by the way, Microsoft now calls, “Creators.” Threw me a little bit, because when I think of creators, I think video, audio, and things like that. But for Microsoft speak, it is now creators.

You would expect with Microsoft having, I’m going to have to say it, the broadest developer tools and platforms out there, they obviously have a lot to talk about. Two things I wanted to go in. First off, let’s talk Power. We saw the Power Platform with a lot of very big announcements. I want to focus in on one, which is … First of all, Power is the low-code, no-code platform for Microsoft. If you want to go a lot of code, you go Visual Studio.

What they did is they have added a real language capability to type in what you want to program, and based on OpenAI’s GPT-3, it automatically splits out code below. It’s pretty crazy. The cool part is not only that it works, but it’s not proprietary. It’s based on OpenAI. If you get into it, and you get hooked on it, and you want to move off of Microsoft someday, you can do that. You’re not just learning it for Microsoft. You’re learning this for multiple GPT-3 environments.

The other thing that I thought was really interesting is Power added what’s called a process advisor. This is a process mining capability. What it does is it identifies repetitive activities that take the most time across any organization. And then, it actually recommends what to automate and showing the organization where a bottleneck exists. This is super cool, but I think macro … It just shows Power Platform using AI in ways that you might not have understood or maybe not appreciated.

And then, I think on the Azure side, for me, the big thing that stuck out was Azure adding a lot more AI end-to-end tools out there. That was one. Essentially showing customers, showing developers how to make SAS apps leveraging Microsoft Azure. Whether it’s using the Azure communication services or other types of AI services, it allows you to build your own SAS apps using their Pass services.

There were a ton of announcements, Daniel, but I want to leave you … There’s so much oxygen left in this room. I do want to add one more. Windows On ARM developer kit. Essentially, letting a 64-bit ARM device in addition to a traditional or internal AMD system is an expensive proposition if you ran into issues there.

Microsoft teamed up with Qualcomm and created this dev kit. It looks like an Apple TV, which is cool. A little mini PC for people to build those applications. Whether it’s low-code, whether it’s no code, whether it’s a lot of code, Microsoft really showed developers the way here. Impressive stuff.

Daniel Newman: Absolutely. Satya Nadella kicked it off with a prerecorded keynote. I always appreciate the utilization of technology in the world of remote content. Although, I am excited to get back to live. It was always good to see him on the stage, talking to us, telling us things for the first time. Pat, you did cover a lot of ground. I think the oxygen joke is like a theme on the show.

You and I just have this propensity to going down the well, and then not coming back out until there’s no water left. But in all serious, I really thought a couple of things caught my attention. You mentioned a few of them. The Dataverse and Synapse Link integration. Really bringing low-code to vast data for integration, warehousing, real-time analytics, and basically making the … You mentioned the term, Pat, about creators as well.

I think what we’re really saying is there was a time when you used to be a broadcast production specialist and you knew how to wield a camera. Now, creators are everybody with a phone. And I think they’re following that same path with developers. There was a time when everyone was pro-code, you had to be pro-code and you had to know how to code something. Now, anybody that basically has a PC can be a programmer. You are now a creator of applications.

The other part that I saw Microsoft really lean into was the Teams and the developer ecosystem for Teams. There’s one more. There’s a broader Azure story, I’m going to write an op-ed about it. I’m not going to tease that here. I’ll write the op-ed, and then you’ll have to go read it. They added a few great features on Teams. Shared staged integration, extensibility of the Together Mode, and some improvements for developers and developer collaboration.

The shared stage basically allows developers to create collaborative experiences, such as whiteboards, project boards, and put them within the meeting. I think that’s important, considering where we’re going with hybrid work. We all heard about Together Mode. Look, we’re sick of this type of video set-up. No offense.

I’m sure you all love looking at Pat and I, but imagine if you could put Pat somewhere cooler? Not just a cool background, but you really start to create that immersive experience. We’re really bridging AR and collaboration now, giving developers more flexibility to create common environments. What about creating a backdrop that makes you look like you’re in the other half of the same room as the physical workers that you are going to be collaborating with in a hybrid work environment?

And then, finally some updates to the tool kit for Visual Studio and Visual Studio Code to basically allow developers to use less code, which by the way, is thematic at Teams. Or sorry, across Microsoft, across Build. Nadella mentioned a hundred updates for developers at the event. A hundred may not seem like a lot, but the theme as I see it is less code, low-code, and no code. So that you can spend your pro-code resources doing those most important and most complex things.

Patrick Moorhead: Well said, Daniel. You add that to the Power, GitHub, and Azure, and I have to agree … As an analyst, you need to be very careful on your definitive phrases. But I do believe that Microsoft has the most comprehensive developer tools and cloud out there for developers right now.

With that said, good job, Microsoft. It was a really good event, I learned a ton. Let’s jump into NVIDIA earnings. Daniel, why don’t you help us break that down? Was it just another repeat out there? A rinse and repeat of what we’ve seen in the last five quarters? Or is there anything different to talk about?

Daniel Newman: I think so. I think so. But I’ll try to leave you a little bit of a breathing room here, Pat. I’ll leave some water in the well. I got to change the analogy. I can’t keep talking about just oxygen.

Patrick Moorhead: Right.

Daniel Newman: Okay. I did have a couple of appearances across broadcasts, and I did write a MarketWatch op-ed on this one. I’ll put that up in the show notes. Look, I’m from Chicago, Pat, even though I am moving to Austin. Anybody that knows Chicago and anyone that grew up in the 90s like I did, knows that us in Chicago enjoy a three-peat.

NVIDIA was going back-to-back-to-back now with record top-line results. And its guidance is pointing to another quarter of record breaking. You’re basically going to see a company going years straight of blowing out record revenues in its biggest business units and overall for the business. Pat, the highlights are all in enterprise, data center, and gaming.

There were some subtle successes. ProVis had a really good quarter. Also, OEM had this big jump in its number. It’s a smaller category for the company, but based upon its CMP, its mining products. But in the data center, we saw a two billion plus 79% growth. And in the gaming area, we saw 2.76 billion, 106% growth, Pat. I’m going to actually go a little different direction and leave you to talk a little bit more about those particular categories.

The two big things that I think happened in and around earnings. First of all, NVIDIA announced a stock split that’s going to happen on July 20. Going four for one in its stock, taking its price down in the 150 to 200 range, depending on how quickly it keeps going up. Very interesting item to watch for people out there that follow the company and investors, because it suddenly becomes a really juicy prospect to be added as part of the DOW 30 component. Something I’m super interested in.

Second thing. On the earnings call, the company had mentioned that its ARM deal is moving along. And it is moving along in a way that the company feels comfortable saying on the earnings call that its expected close in the first quarter of ’22 is still on the table. My op-ed, I said trillion dollar potential valuation associated if the ARM deal gets done.

And in this last quarter, the company announced a new product called Grace. It’s not going to come out until 2023. It’s an ARM-based CPU at the ultra high-end. Not really even comparable to most of what you think of when you think of a CPU. But what the company did essentially say with this announcement is, “We are a three prong semiconductor company now.”

We are GPUs, which the company absolutely rocked that particular business line. DPUs, which is the new data processing side, to basically split off more of the specific types of workload that takes unnecessary resources off the CPUs and GPUs data processing. And then, the third is CPU, which it hasn’t played in, and now it is.

I basically left it at this, Pat. And I’ll let you take it from here. With or without the ARM deal, NVIDIA is going to go into CPUs, which is something notable. With its revenue and its trajectory and its $6.3 billion guidance for next quarter. By the way, another $600 million in added revenue is expected for the next quarter. This company is on a heck of a trajectory.

Patrick Moorhead: I mean, what can you say? The company crushed it. And I think the things that I’m looking for, first off, that gaming number is obscene. It’s obscenely good. It’s twice what it was a year before. The company is very clear, they don’t know how much is crypto and how much is gaming. I think there’s a lot of gaming and there’s a lot of crypto. It is nice to see. I think a litmus test will be with its upcoming, newer LHR, lower hash rate, limited hash rate products that it’s bringing out.

Plus, its CMP line that came in at $155 million this quarter, to get a better sense of what real gaming is and real. By the way, the only reason that matters is about the future and what it looks like. When Bitcoin mining was done on a GPU, we saw a 50% reduction in the gaming numbers when it moved to an ASIC. That’s just something that people need to really keep in mind.

But one thing I will say about Grace is, I think you’re right, Daniel. Irrespective of the ARM deal going through, NVIDIA has been in the CPU market forever. They have one as a part of their gaming platform with Nintendo on the console. They have a part of it in their multiple variations of auto solutions. But what they haven’t created yet is a world-class beating, general purpose CPU.

Grace is not that. Because when you look at the spec on that and what that would drive with general purpose, you’re looking at more like what a processor from AMD and Intel would have done in 2019. By the way, NVIDIA would agree. I’m not slapping them around here. I think that’s what the data shows and they were very clear.

That’s because for many type of workloads, when it’s heavy GPU, the CPU is a controller. I get that. I do think if this goes through, Intel and AMD better watch out, because they are coming straight at that revenue and profit pool of money for x86 PC and x86 general purposed data center market, which is at least a $200 billion opportunity.

Daniel Newman: Absolutely. Hey, I know we know don’t kick back and forth, but just let me be clear, Pat. First of all, that’s a great assessment and a great add. I, by no means, was saying that this first one is going to put the company on the radar and make them a readily able competitor across the general purpose CPU space.

But what I do believe, Pat, is it was a clear sign of intent that it no longer, whether the ARM deal is completed or not, is going to stay out of the quote unquote CPU space. And that could be even as a licensee, but from what they’re saying, sounds like the deal is going in their direction. At least, that’s what they’re saying.

Patrick Moorhead: By the way, for our viewers out there, if you are paying attention here … It costs around a billion dollars to fund your own grounds up processor if you take an architectural license. That includes test units and everything. That is the rule of thumb out there. You can do it for a couple of hundred million, if you’re licensing the technology and don’t get too nutso about it. But it’s going to cost you a billion dollars to do your own leading edge CPU from the grounds up.

Daniel, let’s move on to Salesforce earnings. With all of these acquisitions that they’re doing, and all of this pandemonium … We know SAS is hot out there, because it’s the easiest way for enterprises to get it through COVID. All SAS was hot, but were they able to start pulling some of these other company acquisitions and investments together?

Daniel Newman: You and I have been both complimentary towards Salesforce as one of the companies that originally really drove the SAS conversation forward. But I’ve also been a critic. Very notably at one time, I even suggested Microsoft could be gaining ground, and based on a percent growth of its SAS products, it has been. But you also have to remember, we had that same conversation about AWS and Google. Google is growing a lot faster, but AWS has a much bigger business. There’s a similarity of what’s going on here.

Their sustained growth is really going to matter. This quarter, the company delivered on the top line. It had a very strong beat on the bottom line. But what I was looking for, Pat, in the last quarter, I’ve been very focused on the company’s Platform business. We’re seeing a fairly consistent result coming out of its Sales Cloud and Service Cloud. Those are what I call the legacy core Salesforce products. By the way, they’re growing double digits, still 11% for Sales, 20% for Service.

It’s not slow, but its largest category is now what it considers Platform. Its two fastest growing are Platform and then it’s marketing and commerce business. Not surprising that marketing and commerce is growing fast, following COVID and the whole stay at home trade. But the platform has been one of those things that’s been a little murkier. After the Tableau acquisition, I raised the question, “Is this company going to go hybrid?”

Because it used to be the, “We love software,” company. It used to be the company that did everything in the Cloud, software is easy, all you need is a web browser. Well, Tableau and MuleSoft are hybrid integrations. They’re basically connecting data warehouses and sources to business intelligence and AI. It wasn’t a straightforward thing. Going forward, that’s where Salesforce really has had to work on building a platform to make its solutions more extensible.

And so, what happened this quarter, Pat, that’s really worth noting is the company, for the first time since the acquisitions of Tableau and MuleSoft, broke out those particular business unit performance for the quarter. What’s interesting is of the 1.7 billion or so of business done in platform, a little over half of it was done by MuleSoft. Actually, sorry, a little under half of it was done by MuleSoft and Tableau. But this is what I was looking for. Are these investments paying off for investors and for its customers?

Well, Tableau came in at 394 million on a 38% growth year over year in this quarter. MuleSoft saw 380 million and 49% growth. My early inclination is, with that growth rate usurping all of the segments individually for Salesforce, is that at this juncture, these investments are paying off. The platform and the ability for customers to go hybrid and utilize these tools is clearly adding some net revenue expansion.

As I see it, what’s most likely is their pure SAS and legacy customers are starting to adopt the hybrid tools and expanding. And it’s adding revenue to existing customers. Of course, it also brought in a subset of customers, because you can still run Tableau on another system. And that’s one of the things a lot of people maybe don’t realize. You don’t have to be a Salesforce user to be Tableau user.

But over time, I think it was always about extensibility. The only other thing I’ll add, Slack deal is still out there. The Slack deal is a big deal. It’s a $27 billion deal. Pat, I’m sure that was the thing you were waiting to see if I wouldn’t talk about, so you could. I’ll leave it there. I’ll turn it over. It was a good quarter for Salesforce.

Patrick Moorhead: I have been impressed with the Salesforce’s ability to rack it up, rack up the numbers. I really want to see post-COVID because, listen, was there a SAS property that wasn’t hot during COVID? Name one. I can’t think of any, so I don’t think that’s very special. I do think the Slack acquisition is going to be a bottomless pit, because if you are trying to separate chat from other things like productivity, good luck with that.

There was a reason that Slack allowed itself to be acquired. It’s because they saw the writing on the wall with Microsoft. Now, it’s up to Salesforce to put additive value against that. I would say beyond having a massive sales force, you have to become a productivity property. And I just don’t know, I don’t know how that works. Daniel. Maybe it’s through APIs into Microsoft and into Google? But right now there’s really only two productivity solutions out there.

And I would say three if we’re counting Zoho, for smaller entities who are looking from top to bottom. Good luck. I think this is going to be a money pit, and they’re going to have to keep on investing. But listen, for the sake of investors, I hope I’m wrong. With that, let’s jump into Oracle is going ARM-based instances. Oracle, the company behind SPARC and has most of their cloud on Intel, or completely abandoning SPARC with this move.

But they opened general purpose ARM instances through a small company called Ampere. And the Ampere lineage goes way back to Applied Micro, which was acquired by MACOM, which was acquired by Ampere. Sprinkle on a bunch of ex-Intel executives and engineers, and here we have what I think is  Ampere to me is the first credible data center product that they’ve come out with.

It’s a freaking beast. The thing has 80 cores. By the way, it’s 80 cores of predictable performance, which is, it doesn’t use hyper-threading. And that’s really important to companies like Oracle Cloud and even AWS with them doing the Graviton2. Because hyper-threading is great, but it’s not a one for one. You’re not getting a core for free there. Sometimes you have what’s called a noisy neighbor, where two instances are fighting each other.

The cool part, what Oracle did, is you can sign up for one core at its lowest level. And I absolutely love that. I also liked the way that Oracle has pulled in the security point of view from having dedicated cores. And I think price performance is going to be hard to beat right now. I don’t feel like Oracle is just positioning this as a low-end play. This is, I would say, my gosh, it’s going all the way from lower-end general purpose to really intense workloads that include AI inferencing and high-end scientific application support.

This, in addition to Graviton2, Daniel, from AWS, I feel like is the real proving ground for ARM and Cloud as general purpose. ARM has spent a decade inside of storage and inside of networking. And then, even inside of AWS’s offload layer, Nitro. But this is the first big test … Two tests. One here, with Oracle. And the other one at AWS, I think, will make a huge determinant.

Now, the other thing I really like, that nobody’s really talking about, is this is the first big enterprise play we’re talking about here. Because you have Oracle workloads running on top, where normally for Graviton2 you’re really looking at cloud native. I feel like this is one more checkbox for ARM, even though it’s in Oracle Cloud. By the way, Oracle Cloud@Customer is on-prem, and its hybrid is the first big test for ARM in the enterprise.

Daniel Newman: Got it. Absolutely. Well, we’ll share our op-ed. Ron Westfall from our team did a pretty explicit one. You covered a lot of ground. His take was that OCI is emphasizing that customers are going to build their virtual machines with more precision, and they’re going to have more flexibility and be able to optimize their costs. That’s the whole story that Oracle is telling now. Whether that’s true, what I will say about that is that the overall perspective is that most Cloud providers are going to have an ARM offering.

It’s either already happened, like you mentioned with AWS with Graviton. Ali Baba, Microsoft has already declared its intent. And if it hasn’t, you look at Google, you look at now with Oracle doing it. There aren’t a lot of Cloud providers left that aren’t in this space. And I also think everybody’s de-risking to some extent. They’re de-risking, if this does take off. Pat, I’ll tell you. All joking aside, even Apple going to ARM and M1 created some level of validation.

And I know we’re talking PCs versus data center. It’s not the same thing, but it’s the fact that you start to see companies say, “We can do it. We can offer this variant. We can potentially use it to create ASICs that are really going to fit certain requirements.” As we start to see things tied together with the separation of types of workload for general purpose or for a GPU. Of course, with all the advent and onset of DPUs in the data center, we’re starting to see a lot more flexibility and how every semiconductor is designed and what workloads there for.

Oracle is going to participate, Pat. You and I have been on this show more than a few times saying essentially, “Don’t count them out. Don’t count Oracle out.” It’s Gen 2 Cloud is a whole different beast than it’s Gen 1 Cloud, and it is more competitive. This is one example of the company saying, “Good on Oracle.” I don’t think x86 is in any trouble at the moment, but I do think having the ARM option is going to be a popular sentiment across the cloud providers over the coming couple of years.

Patrick Moorhead: Yeah, it will. And I’m waiting to see Intel’s new design and architecture as well as they go modular, which will allow them to do more piece parts. It’s like, “Hey, you don’t want hyper-threading? Okay, here you go. Here’s a core for that. You want a different I/O? Hey, we can do that. And we’re going to put it together on Foveros, and that’s not going to cost $27 million to take that thing out.”

Anyways, chips are sexy, my friend. We’ve been saying it for a long time. But let’s jump into Dell technology earnings. Gosh, Dell is one of the few companies that spans all the way from endpoints with PCs and PC services. To infrastructure, data center infrastructure as a service, and everything in between. Daniel, is infrastructure back? You know PCs had to be good, but is infrastructure back?

Daniel Newman: Well, infrastructure was up. After several flat or slight pullback quarters, the company did see material 5% overall growth in its ISG business. Quick rundown, 12% overall growth on almost $25 billion in revenues. Solid growth for infrastructure. Client was up substantially in the 20s. VMware another other 9%, but that wouldn’t really be a thing much longer for Dell. That was this quarter.

Their operating income. Clearly, the company is just absolutely running the show well. Up 96% this quarter. Means getting the supply lines right, getting the operations, the delivery right. And that 5% growth in ISG, Pat, to me is more of an indication that we are returning to some level of normalcy. Throughout the pandemic, the investment in the stay-at-home plays, the cloud, SAS, PCs, all strong.

Infrastructure lagged. We’re not going to be investing in our co-locations and our on-prem data centers. We’ll move things to the cloud. That’ll be our short term workaround. Long-term though, people are going back to the office. Long-term we need to get to the edge. We need to get to the core applications on-prem. We still have 70, 75% of workloads on-prem. That’s a lot of servers, a lot of storage, a lot of networking, and that’s a lot of Dell EMC products.

And so, seeing that growth was encouraging, Pat. Across the board, just real quickly touching on it from a PC side … Pat, this was interesting, but the consumer business was ripping. Orders or bookings were up 58%. XPS shown up into the 20s of percent, which is high for the high end, because that’s a top end product. How about this one, Pat? Something with the GPU shortage. Alienware. 76% growth, year over year. I’m thinking people wanted gaming PCs. They’re hard to come by right now.

Consumer across the board was up, by the way. You saw yesterday, HP, 70 something percent growth in consumer, whereas commercial was only in the teens. Consumers are buying a lot of PCs. On the infrastructure side, almost eight billion, 5% growth. The server business was up 9%, which was one of the stronger parts of the business. But overall, this is just an indicator of things to come.

Cisco showed growth a week ago or two ago, it was like 7%. I now anticipate based on this and Cisco’s results, we’re going to see maybe some growth from HPE. Small, but I would expect maybe single digit growth coming in there. And that’ll be, I think, next week.

And so, overall, Pat, a solid quarter from Dell. Continuing, hitting all the high notes, big top end revenue. But I think people are going to want to see even more. I think ISG even more, and of course, Project APEX. They’re not going to be reporting numbers anytime soon, but they’re going to want to start to see some material growth in those subscription numbers.

Patrick Moorhead: Dell stock is up 100% in the last year. Actually, more than that technically. And I still think they’re undervalued. When you look at what they’re able to generate with cash, when you look at what will be a new debt rating for them, an investment grade debt, which takes the risk off. When you look at their ability to profitably gain share. Look at the profit of other people in their sectors and what they’re spinning off, and look at the margins.

In more cases than not, Dell is pumping out more impressive, either op-inc or gross margins. Dell doesn’t get into businesses that aren’t good, right? They don’t play the leverage game. Therefore, you won’t see them driving a lot of low end consumer PC business or low end storage. They’re just not going to play there.

I think what investors are going to have to look at in the future, is look at their growing long-term TAM, post-VMware spin, their ability to gain share profitably, and how much cash that generates. The ability for them to leverage their P&L to grow that revenue, and how much investment that actually takes. And then, map that into their cash flow and what they’re able to hang out there.

And I think this company has a ways to run, but we’ll see. I’m an industry analyst, not a financial analyst, but I am bullish on the company. Let’s work to the last topic. That’s the Google Cloud Data Summit. A little background here. At least when I’ve talked to either CIOs and even CEOs in the last six months, asking them, “Hey, do you use Google Cloud in any way, shape, or form?” If they say yes, typically it’s around either data analytics or AI.

That is the sweet spot for a Google Cloud right now as a starting point. That’s their land and expand strategy when they get in there. Google announced a bunch of new products. Daniel, you might recognize this from Cloudera. But basically they came out with an end-to-end platform at multiple steps of the way with security and governance for the data engineer, the data scientist, the developer, the data analyst, and the business user.

A full stack offering with the ability to pull data in from multiple places, and then export data, if you want it to in a multiple places. Or visualize it in Looker or something like that. Dell, for the first time, planted their flag on an end-to-end integrated data platform that reminds me a little bit of Cloudera. I’m going to admit it. I’m going to throw it out there. The other two products, they brought out Dataplex and Datastream and Analytics Hub.

Dataplex is the ability to get it a one view across data lakes, warehouses, other data marts and organizations, and do it with a consistent policy. Datastream is all about integrating and analyzing data and doing it quickly and having the fewest resources to achieve it. It’s serverless. It’s a service, but it essentially is intelligent replication across many places.

And then, finally Analytics Hub, which is how to manage and govern all of this information here. It’s based on BigQuery, which I would say is one of the best known tools out there if you’re doing any kind of data with that. I’m going to end here. Gosh, I’m just talking up a storm here. In addition to an end-to-end data process flow and management system, they also did it for AI.

They did this at Google I/O, but I don’t think it got a lot of press, because Google I/O is primarily a consumer event. This is very much an enterprise tool called Vertex AI. As we have grown to love, we saw AWS bring out an end-to-end AI platform. All the way going from data labeling, all the way to models and inference. That is Vertex AI.

Daniel Newman: Well, let’s sort of wrap this section up where we began. Data is the core.

Patrick Moorhead: Yeah.

Daniel Newman: Google recognizes. AWS has already built an expansive and highly extensible data set of tools for everything from AI and ML, the database. Google’s a little bit been playing catch up. I’m not surprised to see them expanding that offering. Microsoft’s whole developer event Build was all about data, data platforms, low-code, making data more accessible to developers and non-developers, creators to be able to utilize.

It’s not surprising when you start to hear these big cloud players getting into the spaces where Cloudera plays, making offerings for AI and ML, where Databricks plays. Getting into the spaces of Snowflake, Palantir, and all the others that are basically saying, “Hey, we do this data thing really well.” Well, the big cloud providers, you can count on them being there.

That doesn’t mean there won’t be best of breed tools from other vendors, but you can just be certain that Google, with its ambitions for growth under Thomas Kurian, are going to make the investments and expand. Way to go. Hey, Pat, before we wrap up the show, can I maybe just bounce a promo out there for all our listeners?

Patrick Moorhead: Sure.

Daniel Newman: We don’t do that a lot, do we?

Patrick Moorhead: No, we don’t.

Daniel Newman: On Episode 79, the way I’d like to wrap this particular one up, is I’d like to talk about the Six Five Summit just for a minute. On our last show, we came out, we took everybody through it. If you didn’t see 78, check it out. Our last topic was all about our Six Five Summit. Just shared it on our account, it had a, “CEO’s of Six Five Summit,” header. I believe we have more than 15 major technology CEOs across semiconductors, across PCs, and across infrastructure, AI, ML, all kinds of automation, Pat.

Really, from June 14 to 18, for five days, we’re going to give you more than 50 sessions, including live interactive Q and A’s. Really, all we want is hopefully for all of you that enjoy these shows, week in and week out. Maybe that take a few of our tidbits and tadbits and take it to the table. Maybe, you could sign up and you could join us. Because, Pat, we’ve worked really hard.

You and I have been on an interview terror over the last month, wrapping up in the next week. Listen, this is going to be so good. This is going to be so good. We promise you. Other than listening to our weekly Friday Six Five episodes, our regular episodes, this’ll be the next best thing in tech. You won’t regret spending some time with us.

Patrick Moorhead: I cannot wait to do this. We’ve done some recorded videos so far. But we’re going to have recorded videos. We’re going to have a live Q and A’s, and bring that in there. 15 CEOs, Daniel, are part of the program, and about 20 CXOs, when you count presidents. I’m super excited for this. And I think the audience is going to love it. I really do. I think we upped our game in terms of the conversational ability to really get in and ask real tough questions.

I think you all are going to love this. With that, I want to take us out of this episode of Six Five. If you liked what you heard and you’re on YouTube, press that subscribe button. Or if you’re on Apple Podcasts or Google Podcasts, go on and click that subscribe button. And if you like what you heard, if you don’t like what you heard. Hunt Daniel and I down on Twitter. We’re on that way too often.

Let us know what you think. With that, everybody have a great, great holiday weekend if you’re in the United States. If not, hey, don’t try to get ahold of us on Monday. We may not return your emails. But with that, have a great one. Thanks for tuning in.

 

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