Episode 235, this episode aired on October 07, 2024
Analyst(s): Daniel Newman, Patrick Moorhead
In Episode 235 of The Six Five Webcast, Daniel Newman and Patrick Moorhead discuss the latest innovations from VAST Data, the growing need for automation at U.S. ports, and NVIDIA’s major partnership with Accenture. They also delve into the evolving AI landscape and Apple’s challenges with iPhone 16 sales.
What Are Covered in This Episode:
- VAST Data’s $9 billion valuation and COSMOS event announcement
- The rise of automation in U.S. ports and labor challenges
- NVIDIA and Accenture’s AI partnership to accelerate enterprise AI adoption
- AI developments, including generative AI and large language models
- Apple’s iPhone 16 struggles with sales and shifting consumer demand
Access the video link of the October 07, 2024, Six Five episode here.
VAST Data: Reshaping Data Storage with AI-Driven Insights
VAST Data, a company making waves in the storage industry, has rapidly grown to a $9 billion valuation, and its recent event, COSMOS, highlighted its ongoing innovations in the storage space. VAST is known for its efforts to collapse the storage stack, transforming how data is accessed and utilized. The COSMOS event unveiled the “Insight Engine,” a real-time data operating system for AI that integrates seamlessly with NVIDIA’s AI infrastructure.
The game-changing aspect of VAST Data’s approach is that it incorporates a vector database and eliminates the need for separate storage systems. This reduces complexity and enhances security by keeping all the security embeddings within the data. While traditional storage companies like NetApp and Pure Storage have also been exploring new paradigms, VAST Data’s focus on simplifying the entire data-to-insight process sets it apart.
Integrating VAST’s technology with hyperscalers like xAI and Grok and partnerships with Cisco and Equinix points to a broader trend of enterprises increasingly relying on real-time data processing for AI applications. This shift signals a move from traditional storage solutions, where data had to be extracted and transferred before analysis, to a more integrated and streamlined approach.
The Rising Need for Automation at Ports: The Labor Challenge
The recent tentative agreement between the International Longshoremen’s Association and the U.S. Maritime Alliance, where longshoremen demanded a 60% wage increase and assurances against significant automation investments. This strike exposed the fragility of the U.S. port system and the potential disruption that could arise from resisting technological advancement.
In countries like China, ports are already leveraging 5G, IoT, and AI to automate the handling of goods. These technologies improve efficiency, reduce human error, and ensure continuous operation. However, in the U.S., resistance to automation poses a risk to the country’s ability to remain competitive on a global scale. The U.S. cannot afford to delay automation in critical sectors like port operations, especially when other nations rapidly adopt advanced technologies. As companies and industries grapple with the balance between preserving jobs and adopting new technologies, the long-term competitiveness of the U.S. economy could be at stake if labor forces successfully prevent the integration of automation.
NVIDIA and Accenture: A Major AI Partnership
One of the key tech announcements is the partnership between NVIDIA and Accenture. Accenture is creating the NVIDIA Business Group, which aims to train 30,000 employees on NVIDIA’s AI technologies, including AI Foundry, NVIDIA Omniverse, and AI enterprise solutions. This move signals Accenture’s commitment to staying at the forefront of AI-driven enterprise solutions, especially as the demand for AI consulting and expertise grows.
While companies like NVIDIA have been critical players in powering AI applications for hyperscalers and enterprises, there is still a significant gap in AI adoption among enterprises. Accenture’s initiative seeks to close this gap by helping companies implement AI solutions tailored to their specific needs, whether for back-office processes, industrial edge operations, or front-office AI applications.
Hyperscalers like Microsoft, Amazon, and Google have been leading the AI race, and the role of system integrators (SIs) like Accenture in helping enterprises adopt AI at scale is becoming increasingly important. Accenture’s move to establish a dedicated NVIDIA AI practice reflects a growing demand for AI expertise across industries, from healthcare to financial services.
The episode further highlights how Accenture’s partnership with NVIDIA mirrors similar alliances in the industry, such as its collaboration with IBM Consulting and other big tech firms. These partnerships aim to accelerate the adoption of AI technologies in enterprises by providing both the tools and the expertise needed to implement them effectively.
AI and Generative AI: The Latest Developments
OpenAI, NVIDIA, and other companies have been pushing the boundaries of what’s possible with AI, and Newman and Moorhead examine the implications of these developments for businesses and consumers alike. One key point was the increasing importance of real-time AI applications, particularly in areas like generative AI.
The rise of large-scale models that allow for more efficient processing of diverse data types, from text to images, and their applications in various industries. As companies continue to invest billions into AI research and development, the challenge remains to bring these innovations to the enterprise level. While companies like NVIDIA are making significant strides in AI infrastructure, the real test will be how quickly enterprises can adopt these technologies and integrate them into their day-to-day operations.
Apple’s iPhone 16: A Shift in the Product Cycle
The episode also delves into Barclays’ recent report indicating that iPhone 16 sales have not met expectations. This discussion highlights a potential shift in the product cycle, where software is becoming more important than hardware for driving consumer interest.
Many of the features that were supposed to differentiate the iPhone 16, such as the improved camera and AI-driven applications, have not been compelling enough to drive significant upgrades among consumers. This reflects a broader trend where consumers are holding onto their devices longer, waiting for more substantial innovations before making a purchase.
Apple may face challenges in markets outside of North America and Western Europe, where Android devices dominate. While the iPhone remains a powerful brand, the lack of groundbreaking features in recent models could impact Apple’s ability to capture market share in these regions.
Looking Forward
From VAST Data’s disruptive potential in the storage market to the growing importance of automation at ports and the rapid advancements in AI, these discussions provide valuable insights into the future of technology.
As enterprises continue to navigate the complexities of AI adoption, partnerships like the one between NVIDIA and Accenture will play a critical role in helping companies bridge the gap between innovation and implementation. Meanwhile, the ongoing resistance to automation in sectors like port operations reminds us that technological progress often comes with its own set of challenges.
The episode concludes with a look at how consumer technology, particularly Apple’s iPhone, evolves in an era where software increasingly takes center stage. As the tech landscape shifts, it will be interesting to see how companies like NVIDIA, Accenture, and Apple adapt to the changing demands of both enterprises and consumers.
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Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
Daniel is the CEO of The Futurum 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.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
Six Five Media is a joint venture of two top-ranked analyst firms, The Futurum Group and Moor Insights & Strategy. Six Five provides high-quality, insightful, and credible analyses of the tech landscape in video format. Our team of analysts sit with the world’s most respected leaders and professionals to discuss all things technology with a focus on digital transformation and innovation.
