Episode 234, this episode aired on September 30, 2024
Analyst(s): Daniel Newman, Patrick Moorhead
In The Six Five Webcast Episode 234, hosts Patrick Moorhead and Daniel Newman discuss major developments in the tech industry, from Google’s antitrust complaint against Microsoft to HP’s AI-focused innovations. The episode also covers Micron’s AI-driven growth, Intel’s Lunar Lake benchmarks, and NetApp’s data infrastructure advancements.
What Are Covered in This Episode:
- Google’s antitrust complaint against Microsoft over Azure cloud practices
- HP Imagine 2024: AI-powered commercial products and GPU-sharing innovation
- Micron’s AI accelerator and memory growth, fueled by demand for HBM3
- Key insights from the Global Semiconductor Alliance Executive Forum on AI and semiconductors
- NetApp’s pivot toward Intelligent Data Infrastructure and agile data updates
- Intel’s Lunar Lake benchmarks: AI performance and battery life improvements
Access the video link of the September 30, 2024, Six Five episode here.
Google vs. Microsoft: Antitrust Complaints in the Cloud War
Google accuses Microsoft of using unfair licensing contracts within its Azure cloud computing platform to stifle competition. This is a significant development as Microsoft has avoided regulatory scrutiny in recent years compared to its peers in the Magnificent Seven, such as Google and Amazon. This legal battle brings ongoing concerns about monopolistic behavior in the tech industry, especially in the cloud computing sector.
Google alleges that Microsoft’s licensing practices make it prohibitively expensive for customers to move their workloads to competitors, essentially locking them into Azure’s ecosystem. This echoes past antitrust concerns, such as Microsoft’s bundling of Internet Explorer with Windows in the early 2000s, which led to significant legal challenges.
The crux of this complaint is whether Microsoft’s practices, which aim to optimize customer experiences by integrating software and services, cross the line into anti-competitive behavior. This is a fine line that European regulators, who have historically been tough on such issues, are likely to scrutinize closely. This could have far-reaching implications for the cloud computing industry, particularly in competition and innovation.
HP Imagine 2024: Innovation in the Workforce
HP’s focus on innovation was evident as they highlighted their commitment to AI-driven solutions in the PC, workstation, and printing spaces. A standout announcement was HP’s partnership with AMD, where they unveiled the highest-performing AI product in their portfolio with 50 NPU tops.
HP’s strategic decision to focus on AI for commercial products is a significant move, as the company aims to capture a larger share of the growing market for AI-enabled devices. This is particularly relevant for data scientists and developers requiring powerful machine learning workstations. HP’s new Boost feature, which allows GPU sharing across a workgroup, could enhance productivity by enabling users to tap into high-performance hardware even if their systems lack a dedicated GPU.
On the printing side, HP introduced AI-driven features that improve printing efficiency by eliminating unnecessary elements such as ads and headers when printing from the web. This practical application of AI shows how the technology can be used to enhance everyday tasks, making life easier for both consumers and businesses.
Micron’s AI-Powered Growth
Micron’s recent earnings report, driven by AI accelerator demand, was another major talking point. Micron is benefiting from the surge in demand for High Bandwidth Memory (HBM) products, which are critical for AI workloads. HBM3, in particular, has become a hot commodity, with demand expected to outstrip supply through 2025. This highlights the central role that memory technologies play in enabling the AI revolution.
Micron’s optimistic outlook, as expressed by CEO Sanjay Mehrotra, suggests that the AI demand cycle is just the beginning. This is a multi-year growth opportunity, with AI continuing to drive demand for memory products in data centers, PCs, and even emerging areas such as smart glasses and connected devices. The webcast panel noted that this growth is not just a short-term trend but a long-term shift in the industry.
The memory sector is notoriously cyclical, but the AI boom appears to be extending this cycle, providing sustained demand for companies such as Micron. As the need for AI accelerators and memory products grows, Micron is well positioned to capitalize on this trend, likely contributing to further stock appreciation and revenue growth in the coming years.
The Evolution of AI and Semiconductor Innovation
The Global Semiconductor Alliance (GSA) Executive Forum provided additional insights into the future of AI and semiconductor innovation. At the forum, the discussions centered on AI’s challenges and opportunities, particularly in computing, storage, and connectivity.
One of the key takeaways from the forum was the growing importance of specialized hardware for AI workloads. Companies are increasingly looking to develop customized solutions that optimize performance and reduce power consumption. For example, SambaNova and Astera Labs are working on solutions that lower power requirements while boosting performance, which is crucial for the future of AI-driven applications.
As AI models grow in size and complexity, the need for more efficient hardware solutions becomes even more pressing. The shift from training to inference, as highlighted during the forum, is another critical trend. As more companies deploy AI models in production environments, the focus shifts from massive training clusters to efficient inference systems that can process data in real time. This shift will drive demand for specialized hardware such as ASICs and XPUs optimized for specific AI tasks.
NetApp INSIGHT 2024: The Future of Intelligent Data Infrastructure
Another major highlight in tech was NetApp’s pivot from traditional storage to intelligent data infrastructure (IDI). NetApp is positioning itself as a key player in the AI-driven future of data management, with a focus on enabling organizations to access and manage data more efficiently across multiple environments.
One of the most intriguing developments at NetApp INSIGHT 2024 was the company’s emphasis on eliminating unnecessary layers of abstraction in data management. By allowing applications to access storage and file systems directly, NetApp aims to simplify data access and improve performance. This approach aligns with the broader industry trend toward more efficient, AI-driven data management solutions.
NetApp’s innovations in data snapshotting and agile data updates also stand out. By only updating the data that has changed, rather than moving entire datasets, NetApp can significantly reduce the time and resources required for data management. This is particularly important as data volumes grow exponentially in the AI era.
Intel’s Lunar Lake: A New Era in CPU Design
The webcast also touched on Intel’s latest Lunar Lake benchmarks, marking a new CPU design chapter. Intel has long been a dominant player in the CPU market, but the competition from AMD and Qualcomm has intensified in recent years. With its emphasis on AI performance and battery efficiency, Lunar Lake is Intel’s answer to this competition.
One of the most interesting aspects of Lunar Lake is its integration of memory into the package, which reduces latency and power consumption. This architectural innovation is crucial for AI workloads, where performance and efficiency are paramount. While the benchmarks were mixed, with some sources favoring Qualcomm in certain areas, Intel’s performance in single-threaded CPU tasks and office productivity benchmarks was impressive.
The Lunar Lake launch also highlights Intel’s shift toward using TSMC to manufacture certain components, underscoring the complexity of modern CPU design. Despite the challenges posed by its rivals, Intel’s ability to remain competitive in this space suggests that the company is still a force to be reckoned with in the CPU market.
Looking Forward
As companies such as Google, Microsoft, HP, and Intel continue to push the boundaries of what’s possible, the future of technology looks more exciting than ever. Whether it’s the ongoing cloud wars, the rise of AI, or the evolution of IDI, the topics discussed in this episode will surely shape the tech landscape for years to come.
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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.
Other insights from The Futurum Group:
MongoDB Creating FOMO as App Modernization Takes Hold
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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.
