Moor Insights & Strategy Two-Week Update Ending August 20, 2021

I hope you all had a great couple of weeks!  

This week, Steve will be attending Hot Chips and I will be watching from afar. 😊 I will be tuning into AWS EC2’s 15th anniversary and AWS re:Inforce.

Last week, Anshel and I attended Intel’s Semiconductor Architecture Day. Over the last couple of weeks, I presented at the AWS-HCL Cloud event and attended Oracle Live with Matt. I attended Samsung Galaxy Unpacked with Anshel. Anshel attended Siggraph 2021.

Our MI&S team published 29 deliverables: 

The press quoted us with 20 citations. Journalists wanted to hear about AdobeBlackberry, Broadband, Extreme Networks, Fintech, Google, Heatwave, Intel, NVIDIA, Oracle, Salesforce, Samsung, and T-Mobile. 

Quick Insights:

A.I./Machine Learning (Paul Smith-Goodson)

  • N/A

 AR/VR (Anshel Sag)

  • Niantic’s CEO wrote about the Metaverse, giving the company’s perspective, focusing on avoiding the dystopian future that many sci-fi authors envision paired with the Metaverse, instead focusing on the interpersonal aspects A.R. and how its Lightship platform will drive more in-person real-world interactions than V.R.
  • Digilens launched a new TRex waveguide design that can help to double the optical resolution of A.R. headset designs and improve the wobulation of the different RGB signals as they pass through the waveguide.
  • Valve appears to be entertaining the idea of a Standalone V.R. headset.  Facebook’s Oculus Quest V.R. headset gains on virtually every other P.C. headset on the Steam platform. However, a standalone V.R. headset would require considerably more graphical performance to match what Valve is doing today on the P.C. Long term, most V.R. headsets will have a base-level of standalone performance and can be augmented with a P.C. connection either over a wire or wirelessly to gain added visual fidelity and frame rates.

Carrier/Wireless (Will Townsend)

  • The FCC recently provided a list of bidders for its next 3.45 GHz 5G spectrum auction that, to no surprise, includes AT&T, T-Mobile, and Verizon. Given its mid-band swath, it should command a pretty penny, but that is what is bothersome. At some point, the U.S. federal government will have to balance the spiraling bidding and balance the price paid for spectrum with investment in its deployment. If not, it will continue to be challenging to bridge the digital divide across rural America.  
  • NTT announced a global private 5G networking platform leveraging its investment in Celona. I have written about Celona on a few occasions on Forbes, and it has a disruptive offering. One of the biggest hurdles for enterprises is the notion of managing cellular communications infrastructure. It is inherently a different beast relative to Wi-Fi when it comes to managing licensed spectrum, and Celona is easing deploying and ongoing management with its as a service offering.  

Datacenter: 

  • Storage- (Steve McDowell) 
    • Intel disclosed more details of its plans for its off-loaded accelerator space, which Intel calls an IPU, at its annual Architecture Day.  Whatever you call them, IPUs, DPUs, or Smart NICs, the idea that you can accelerate storage and networking using a combination of an ARM-based processor and application-specific silicon is catching on.  Intel’s IPU arrives in a market that already contains NVIDIA, Xilinx, and about a dozen start-ups, all touting the approach.  Intel’s first solution, code-named Mount Evans, pairs its ARM-based processor with an Intel FPGA to provide targeted acceleration. Intel has said that its immediate target for the technology is the hyper-scale space. 
    • Intel has been talking architecture at its event and the IEEE’s Hot Interconnect 2021 conference. Intel presented at HI’21, saying that it sees the emerging CXL interconnect technology, based on the upcoming PCIe gen 5, as a critical enabler of rack-level disaggregated compute and storage, especially when paired with technology like Intel’s Optane. Disaggregated infrastructure is also where Intel is targeting its IPU efforts.  There’s a clear theme emerging from all of this innovation.  Intel will be talking more about IPUs and interconnects at next week’s Hot Chips event, so stay tuned for more.   
  • Networking- (Will Townsend) 
    • Cisco recently announced its fiscal 4Q earnings. I am impressed with its double-digit growth in networking infrastructure that executives cite due to its solid performance in routing. The overall result is an 8% year-over-year increase in revenue and considering the pandemic a remarkable achievement.
    • Extreme Networks announced its intention to acquire SDWAN provider Ipanema for $73 million from InfoVista. On the surface, it is a curious move given Extreme acquired Aerohive nearly two years ago that provides similar capabilities. My best guess is that the Aerohive solution was an early generation of software-defined networking tools. The Ipanema platform likely brings greater depth in security integration crucial to achieving SASE parity with competitors.
  • Server- (Matt Kimball) 
    •  N/A     

FinTech (Melody Brue)

  • After a lackluster public debut on the market, Robinhood (NASDAQ: HOOD) seems to have leveled out of the rollercoaster of its stock price and is up more than 45% (as of 8/12) from its IPO share price. Last week, the platform announced its acquisition of Say Technologies, an online shareholder communications platform geared towards individual investors. Robinhood paid $140 million in cash for the platform and is expected to make more acquisitions soon. This and future investments are targeted to give people equal access to financial markets provided to Wall Street insiders. 
  • Coinbase, the crypto marketplace, reported a surge in profit in the second quarter, far surpassing Wall Street projections. The company reported a net income of $1.6 billion, compared to $32 million in the same quarter of 2020. Revenue went from $178 million to $2 billion in those same periods. Transactions account for the majority of Coinbase’s revenue, spurred from the increases in the value of major cryptocurrencies and growth in areas such as custodial services. 
  • Revolut, the neobank that is making moves to become the next Super App, has applied for a bank charter in California and has begun offering remittances between the U.S. and Mexico, signaling the challenger bank is preparing for U.S. growth. Last year, the company launched in the U.S. but did so very quietly, which is not the norm for its market expansion. Due to Covid, the company focused on product development instead of a market push. As Square, PayPal, and others race to create Super Apps in the US, Revolut needs to come out strong now or will likely be too far behind.

IIoT and IoT (Bill Curtis)

  • The L.F. Edge Foundation (part of the Linux Foundation) just released version 2.0 of EdgeX, an open-source IoT gateway project. Code-named “Ireland,” this release is the culmination of 4 years of evolution on APIs, security, messaging, ease of use, and reliability. Advanced security is now built directly into the APIs, message bus, and internal architecture, not just glommed onto the side. Device interface security is also enhanced. Ireland is the basis for the first EdgeX Long Term Release, scheduled for later this year. Commercial products built on the Long Term Release can be supported for many years in industrial applications. Both suppliers and consumers of IoT edge gateways should consider the impact of EdgeX 2.0 on future projects.
  • The Connectivity Standards Alliance updated delivery plans for Matter, the new consumer device interoperability standard backed by Amazon, Apple, and Google, with over two hundred companies participating. Matter promises to remove the undifferentiated friction of multiple competing consumer IoT standards by providing a lingua franca for device communication that operates across multiple networks. Some news reports characterized this week’s update as a schedule delay, but it’s more of a schedule “refinement.” The Matter specification is now feature-complete as planned, and member companies are busy validating the spec between now and the end of 2021. Getting all these companies on the same page is a major accomplishment – mission accomplished! Although SDK formal release has moved from 2H2021 to 1H2022, member companies are already working on interoperable products. So in practical terms, the schedule for delivering the first wave of interoperable products is still about the same. We’ll be watching Matter closely in the coming months because it’s the consumer electronics industry’s only hope for multivendor plug-and-play.

Personal Computing/ Collaboration (Anshel Sag) 

  • Samsung launched two new phones, the Galaxy Z Flip 3 and Galaxy Z Fold 3. These phones were released at a lower price than the previous generation and are still positioned as premium devices.
  • The Galaxy Z Fold 3 finally adds support for Samsung’s S Pen and upgrades the display to 120 Hz while also improving performance to the Qualcomm Snapdragon 888 Chipset. The same chip as Samsung’s flagship S21 series.
  • The Galaxy Z Flip 3 comes in at a much lower $999 price point and targets a much younger, more hip audience, and focuses on content creation rather than productivity. Most carriers are interested in promoting this phone as with some promotions, and it can compete with non-foldable premium phones.
  • AMD launched the Radeon R.X. 6600XT, which delivers great performance for the segment, but doesn’t particularly seem to solve the shortages and high pricing we see from AIB/OEMs.
  • OnePlus attempted to tease a dual-screen device ahead of Samsung’s launch, which was just a 50% off promotion that it was teasing. The entire exercise backfired on OnePlus as many people criticized its poor marketing tactics.

Quantum Computing (Paul Smith-Goodson)

  • N/A

Security (Will Townsend)

  • T-Mobile finally quantified its security breach, and roughly 40 million subscribers were exposed in the hack. Many were quick to judge the operator in the early days of the discovered compromise, but I am impressed with the operator’s transparency with customers. T-Mobile offers two years of identity protection and monitoring, and it updates a microsite with relevant developments. This attack points to the sophistication of bad actors and the momentum occurring with ransomware (although this incident did not directly extort T-Mobile). If there is a silver lining, T-Mobile will take a hard look at how it manages the security of its subscribers, and AT&T, Verizon, and others will likely do the same.
  • Norton announced its intention to acquire Avast in a deal valued at $8 billion and combines nearly 500 million customers. It seems to be a smart move that will allow both companies to pool resources to strengthen service offerings, especially in identity management and privacy control. 

 Columns Published (Forbes, eWEEK, UPLOAD VR, and others)        

  1. Kmart Australia Migrates Its Transaction Systems To AWS, by Patrick Moorhead
  2. Plus Demos Level 4 Autonomous Trucking Capabilities, by Patrick Moorhead
  3. Dell Ultrasharp 4K Webcam Review- Ahead Of The Game In Webcam Technology, by Patrick Moorhead
  4. Is Synaptics Really An ‘EoT’ Company? By Patrick Moorhead
  5. AMD Fidelity FX Is Good For Gamers And The Industry, by Patrick Moorhead
  6. Samsung Foldable Pre-Order Prices Are Actually Affordable When Compared To Premium Apple iPhones, by Patrick Moorhead
  7. Samsung’s B2B Head Says Every Businessperson Could Derive Value From A Foldable, by Patrick Moorhead
  8. Amazon Plans On Spending $120 Billion On Third-Party Supplies And Services In 2021, by Patrick Moorhead
  9. Samsung Improves Its Foldables With Pen, Better Durability, Display, Processor, And Pricing, by Patrick Moorhead
  10. HP Shaking Up Its Consumer Family With New Chrome O.S. Devices, by Patrick Moorhead
  11. Intel Gives More Detail On Consumer And HPC Graphics At Architecture Day 2021, by Anshel Sag
  12. Oracle Claims Leadership In Cloud Data Warehouse Space Over Snowflake With Its New MySQL Heatwave Service, by Matt Kimball

Blogs Published (MI&S)                                                              

  1. No, Qualcomm Isn’t Becoming An Automotive Tier 1, by Patrick Moorhead
  2. The Rise Of Full Stack Observability And Cisco’s Strategy To Fulfill It, by Patrick Moorhead
  3. Vidcast Is Cisco’s New Collaboration Media Platform, by Patrick Moorhead
  4. Tennis Is Now On The Cloud And Powered By Applied AI, And This Is How Roland-Garros Did It, by Patrick Moorhead
  5. N.I. Wants To Help Customers Bring Data Out Of Their Silos With New Offerings, by Patrick Moorhead
  6. The Belgium Post Delivers Packages And On Digital Transformation, by Patrick Moorhead
  7. Intel Updates IDM 2.0 Strategy With New Node Naming And Transistor And Packaging Technologies, by Patrick Moorhead
  8. Box Wants To Disrupt The ESignature Market With ‘Sign’, by Patrick Moorhead
  9. What Does Google’s Tensor SoC Mean For Google’s Hardware And Software Efforts? By Anshel Sag
  10. AMD’s Latest Quarter: Enterprise IT Is Finally Getting On Board, by Matt Kimball
  11. Three Companies To Watch In Cybersecurity, by Will Townsend
  12. Baltic Disruptors Connect The Dots With Cellular Infrastructure, by Will Townsend

Research Paper(s):

  • N/A

Podcasts:

The G2 on 5G by Moor Insights & Strategy, with Anshel Sag and Will Townsend

  • N/A

DataCentric Podcast by Moor Insights & Strategywith Matt Kimball and Steve McDowell

  • Data at the Edge with Western Digital
    • Guest, Scott Hamilton, senior director of product marketing and management at Western Digital
    • How is edge infrastructure different from traditional IT infrastructure? 
    • The impact of AI at the edge
    • Western Digital’s new Ultrastar Edge
    • The Ruggedized/Militarized Edge
    • Getting small at the edge
    • Are there verticals or workloads that dominate the edge? 
    • How does WD view the future of edge computing? 
    • Manageability at the edge
    • Western Digital’s differentiation at the edge

The Six-Five Podcast by Moor Insights & Strategy and Futurum Research, with Patrick Moorhead and Daniel Newman

Moor Insights & Strategy Podcast

  • FinTech Friday – Episode #5
    • There goes the $HOOD 
    • BNPL news of the week 
    • Topic: Have your wine and drink it too
    • Acronym of the week: AML (Anti Money Laundering)
    • Mel explains 
    • Tie into AML which we discussed last week 
    • Final thoughts
      • Finovate Fall – September NY
      • Future of Fintech – October NY

Press Citations: 

  1. Adobe, Frame.io / Siliconangle https://siliconangle.com/2021/08/19/adobe-buys-collaborative-video-editing-software-firm-frame-io-1-275b/
  2. Blackberry / Androidcentral https://www.androidcentral.com/blackberrys-cult-5g-phone-with-keyboards?amp (Anshel Sag)
  3. Broadband / Fiercetelecom https://www.fiercetelecom.com/telecom/could-funding-from-infrastructure-bill-snarl-broadband-supply-chain(Will Townsend)
  4. Extreme Networks / SDXCentral https://www.sdxcentral.com/articles/news/extreme-roots-sase-strategy-in-ipanema-buy/2021/08/ (Will Townsend)
  5. Fintech, Oracle / Fintechzoom https://fintechzoom.com/fintech_news_cciv-stock/how-tesla-and-elon-musk-can-fight-the-new-ev-rivals/
  6. Google / Electronicdesign https://www.electronicdesign.com/technologies/embedded-revolution/article/21171251/electronic-design-google-plans-to-use-its-own-inhouse-chip-in-upcoming-pixel-phone (Anshel Sag)
  7. Heatwave / Bloomberg https://www.bloomberg.com/press-releases/2021-08-10/oracle-announces-mysql-autopilot-for-mysql-heatwave-service
  8. Intel / Stevieawards https://stevieawards.com/aba/intel-corp-best-technology-campaign
  9. Intel / Venturebeat https://venturebeat.com/2021/08/19/intel-takes-the-lid-off-its-biggest-chip-designs-for-the-coming-years/ (Anshel Sag)
  10. NVIDIA, Ethereum / Blockworks.co https://blockworks.co/with-slow-mining-sales-is-nvidia-an-ethereum-macro-proxy/ (Anshel Sag)
  11. NVIDIA, Earnings / SiliconAngle https://siliconangle.com/2021/08/18/nvidia-delivers-another-earnings-beat-massive-growth-gaming/
  12. NVIDIA, ARM / SDXCentral https://www.sdxcentral.com/articles/news/regulatory-hurdles-overshadow-nvidia-arm-acquisition/2021/08/
  13. Nvidia / Fireceeletronics https://www.fierceelectronics.com/electronics/nvidia-founder-honored-top-semi-industry-award
  14. Oracle / KPVI https://www.kpvi.com/news/national_news/oracle-announces-mysql-autopilot-for-mysql-heatwave-service/article_69168674-14f0-5538-b31a-cb4ddd2f9d0f.html (Matt Kimball)
  15. Oracle / Martechcube https://www.martechcube.com/oracle-announces-mysql-autopilot/ (Matt Kimball)
  16. Salesforce / Techcrunch https://techcrunch.com/2021/08/13/there-could-be-more-to-the-salesforce-video-streaming-service-than-meets-the-eye/
  17. Samsung / Androidcentral https://www.androidcentral.com/galaxy-z-flip-3-steal-millennials-apple (Anshel Sag)
  18. Samsung / Siliconangle  https://siliconangle.com/2021/08/11/new-samsung-foldables-z-flip-3-z-fold-3-make-debut-unpacked-2021/
  19. Smartphone / Androidcentral https://www.androidcentral.com/look-inside-some-rugged-android-phones-reveals-shortcuts-some-phone-makers-are-willing-take  
  20. T-Mobile, Cybersecurity / SDXCentral https://www.sdxcentral.com/articles/news/t-mobile-faces-largest-carrier-breach-on-record/2021/08/(Will Townsend)

New Gear or Software We are Using and Testing that is Public Knowledge 

  • AMD RX 6600XT
  • Dell UltraSharp Webcam 4K
  • HP Reverb G2 Omnicept, Chromebase All-in-One desktop
  • Samsung Galaxy buds 2, Galaxy Watch 4, Galaxy Z Fold3 5G, and the Galaxy Z Flip3 5G
  • TCL 20 Pro 5G
  • Xilinx Kria KV260 Vision AI Kit

Events MI&S Plans on Attending In-Person or Virtually (New) 

  • August 2021
    • Hot Chips, Aug 22-24 (Steve McDowell)
    • AWS EC2 15th Anniversary Aug 23-24 (Patrick Moorhead)
    • Big 5G Event – August 31-September 3 (Will Townsend)
  • September 2021
    • Five9 CX Summit, September 1-2 (Patrick Moorhead)
    • AWS Storage Day, September 2 (Steve McDowell)
    • Open RAN Forum – September 14 (Will Townsend)
    • Nutanix .NEXT, Sept 20-23 (Matt Kimball)
    • Storage Develop Conference, Sept 28-29 (Steve McDowell)
  • October 2021
    • Box Analyst Summit, October 6 (Patrick Moorhead)
    • VMWorld, October 5-7 (Matt Kimball, Steve McDowell, Patrick Moorhead, Will Townsend)
    • NAB 2021, October 10-13, Las Vegas, in person (Steve McDowell) 
    • Nutanix .NEXT,  October 12-14 (Matt Kimball, Steve McDowell)
    • Dell Tech Summit, October 12-14 (Patrick Moorhead)  
    • Google Cloud Next 21, October 12-14 (Matt Kimball, Will Townsend, Patrick Moorhead)
    • Brooklyn 5G Summit – October 18-19 (virtual) (Will Townsend)
    • IEEE Quantum Week Oct 18-22 (Paul Smith-Goodson)
    • NetApp Insight, October 20 (Steve McDowell)
    • Energy Drone & Robotics Summit,  October 25-27 (Steve McDowell)
    • REMOVE AT&T Business Summit, Dallas, October 25-27 (Steve McDowell)
    • IntelON and Analyst event, San Francisco, Oct 26-28 (Paul Smith-Goodson, Patrick Moorhead)
    • MWC Los Angeles – October 26-28 (Will Townsend)
  • November
    • MVNO World Berlin – November 2-3 (in person) (Will Townsend)
    • Nokia GAF – November 15-18 (Will Townsend)
    • Lenovo Advisory Council, November 16-18 (Patrick Moorhead) 
    • 5G Techritory Latvia – November 22-25 (in person)  (Will Townsend)
    • AWS ReInvent – November 29-December 5 (Will Townsend)

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The Team 

Analysts, Analysts In-Residence, Contributors

  1. Patrick Moorhead, Founder, President, Principal Analyst; Broad technology coverage plus deep insights into Cloud & SaaS, Personal Computing, Semiconductors, Automotive 
  2. Bill Curtis, Analyst In-Residence, IIoT, and Deep IoT Technology 
  3. Matt Kimball, Senior Analyst, Datacenter Servers, CI, and HCI 
  4. Melody Brue, Senior Analyst, Financial Tech
  5. Steve McDowell, Senior Analyst, Datacenter Storage, and Storage Technologies 
  6. Anshel Sag, Senior Analyst; V.R., P.C. Gaming, Mobile Platforms 
  7. Paul Smith-Goodson, Senior Analyst; Machine Learning, A.I. and Quantum Computing 
  8. Will Townsend, Senior Analyst; Security, Carrier Services, Networking 
  9. Chris Wilder, Contributor, Security 
  10. OPEN, Smart Home 

Operations 

  1. Dan Pickens, Business Director 
  2. Paula Moorhead, Marketing Director, Website, and Social Media 
  3. Walker Pickens, Media Relations, and Writer 
  4. Zane Pickett, Office Manager, A.P., AR, travel, writer 
  5. Lee LeClercq Williams, Business Associate 
  6. Jacob Freyman, Writer, and Researcher