Moor Insights & Strategy Two Week Update Ending July 30, 2021

I hope you all had a great couple of weeks!  

Over the last couple of weeks, I attended Alexa LiveN.I. Connect and Intel Accelerated.  Melody attended LenditFintech: Trust is a Must for Fintechs.  

This week, Melody is attending American Banker: How one of America’s oldest banks is reshaping experiences in the digital age.

Our MI&S team published 39 deliverables: 

The press quoted us with 30 citations. Journalists wanted to hear about Amazon, Apple, Calix, Fintech, Google, HPE, Huawei, Intel, Microsoft, Pure Storage, Samsung, Qualcomm, Quantum, Revolut, and T-Mobile. 

Quick Insights:

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

  • No update  

 AR/VR (Anshel Sag)

  • Facebook has announced that it will be pushing most devs towards using OpenXR APIs instead of its own. This marks a significant shift for the entire industry as Facebook’s Oculus currently drives so much of the V.R. market today with its Quest platform.
  • Facebook announced that it had enabled mixed reality development on the Oculus Quest, not only making it the cheapest complete V.R. solution but also the cheapest M.R. and A.R. solution as well.
  • Facebook’s Mark Zuckerberg has publicly said that he expects the company to become a Metaverse company in 5 years.

 Carrier/Wireless (Will Townsend)

  • Nokia announced earnings this week, and second-quarter performance was better than expected. Given the company’s significant bets and investments in Open RAN and private 5G networking, I am not surprised, both gaining considerable momentum. Given its recent ReefShark roadmap transition, I expect Nokia to regain lost ground in supplying 5G chipsets for cell site infrastructure.
  • AT&T and Verizon reported relatively solid earnings, and significant pre and postpaid phone add gains for each are clear indicators of 5G device upgrades. T-Mobile will report earnings at the end of July, and I expect equally impressive results for both its consumer and enterprise services businesses. This is all very encouraging news post-pandemic and supports how strategic cellular communications are for supporting productivity outside the confines of the traditional office.

Datacenter: 

  • Storage- (Steve McDowell) 
    • VAST Data seems to be in the news every week lately.  This week the company announced that its federal systems subsidiary, VAST Federal, has added former CIA CTO Gus Hunt to its board.  VAST is tapping Hunt to assist in its federal expansion efforts. It’s an excellent catch for VAST, whose technology would be an ideal fit for many government applications (looking at you, Geospatial). It’s a complex environment within which to maneuver, where incumbents have an intrinsic advantage, so bringing in the former CTO of the CIA should certainly help. 
    • HCI has changed how enterprises think about manageability and workload deployment. But, its roster of players continues to shrink.  This week Pivot3, who, along with Scale Computing and Nutanix, built this market category out of whole-cloth just a decade ago, has sold itself to Quantum for $8.9M. That’s not a great return on its investor’s $275M investment, but it is a great catch for Quantum. Pivot3 has nice technology, well-focused on the edge and video surveillance segments.  Quantum will put its acquired assets to good use.  Meanwhile, the HCI market is dominated by the near-duopoly of Vmware and Nutanix, while Scale Computing continues to do interesting things on the edge.
    • Amazon brings SAN-like availability and performance guarantees to the public cloud with its new AWS EBS io2 Block Express.  Amazon io2 Block Express removes some obstacles to deploying workloads that require stringent SLAs and dynamic expansion capabilities, such as database and advanced analytics, into the public cloud.  AWS has built a compelling portfolio of storage offerings, and it continues to add intelligence and SLA-driven capabilities into its feature set steadily.   
  • Networking- (Will Townsend) 
    • Extreme Networks continues to show promise as it ended its fiscal fourth-quarter posting an impressive 29% year-over-year growth and ending its year cracking the $1B revenue mark. Through acquisitions and organic roadmap development, the company has significantly grown its enterprise and service provider business units with a broader and more competitive portfolio to compete with Cisco, Dell Technologies, HPE, and Juniper. I expect to see further growth for the coming year as it adds to some impressive wins that include Wynn Resorts and European retailer Colruyt Group.
    • There is no end to startups that have designs on simplifying the deployment of networking within the enterprise. WiteSand emerged from stealth mode recently and aimed to consolidate on-premises networking tools into a cloud service. On the surface, this is not necessarily groundbreaking given the momentum of cloud within the enterprise for scalability and high availability. However, if WiteSand can deliver on its promise to consolidate network access control, monitoring, analytics, and configuration management into a single pane of glass, it could be pretty compelling.
  • Server- (Matt Kimball) 
    •  No update     

FinTech (Melody Brue)

  • It is not all good in the $HOOD! According to Bloomberg data, Robinhood’s IPO debut was one of the worst in recent history among 51 U.S. firms that raised as much or more cash as Robinhood. The company’s stock slid 8.4% to close at $34.82. It opened at the low range IPO price of $38. 
  • Visa has rolled out BNPL APIs for clients, providing credit card issuing partners with APIs to introduce installment payments. The platform allows users to choose the terms, interest, and fees. The API converts the original transaction to an installment plan, potentially giving more flexibility in everyday purchases. 
  • Discover is also getting into the BNPL game with an investment of $30M in the BNPL startup Sezzle. The investment is part of an agreement that enables the card firm to launch BNPL options to its network and offer Discover debit and credit cards to Sezzle users.
  • Square, the financial services and digital payments company, made several announcements in the last weeks, including making a significant banking push with savings, checking, and other services aimed at merchant customers; a hardware wallet that CEO Jack Dorsey hopes to help make bitcoin more mainstream; and an open developer platform (called TBD, which I believe is its actual name, not just a placeholder as many thought initially) that makes it easy to create non-custodial permissionless and decentralized financial services. Square’s status as a trusted fintech brings credibility to crypto and de-fi and attention to bitcoin custody. For the non-crypto-savvy consumer, the company has wider name recognition than other crypto hardware or developers. Both the hardware wallet and developer platform will operate as independent full business units inside of Square. 
  • Klarna acquired retail tech startup HERO for an undisclosed sum, giving the Swedish-based BNPL company access to which lets online customers connect with in-store retail associates. This move could help Klarna strengthen merchant relationships, allowing in-store staffers to create content and advise customers. The virtual shopping tools connect merchants, salespeople, and shoppers to answer product questions, provide advice, and check inventories, similar to an in-store experience. More than 1 million shoppers have used Hero for a personalized shopping experience in the past six months, making them 21 times more likely to buy products than they would if unassisted, per data cited by Hero. The company also recently acquired Shoptail, a comparison shopping company, and Toplooks, an artificial intelligence-based styling & shoppable content platform. 
  • Apple plans to launch a “buy now, pay later” product with Goldman Sachs, expanding its reach into payments. Apple and Goldman join a crowded market, with Affirm, Klarna, PayPal, Katapult, and others offering versions of BNPL and other installment options. 
  • Robinhood racks up more fines and adds potential adverse impacts to disclosures in its S1 filing. Robinhood said it expects to pay a $30 million penalty as a result of an anti-money laundering probe of its cryptocurrency business, according to an amended S-1 filed with the SEC. The company warned investors that it expects a decline in “new users joining our platform, driven by general market interest trading,” leading to lower next quarter revenues, particularly in cryptocurrencies. The online brokerage set an expected price range of $38 to $42 per share, which would mean a $32 – $35 billion valuation — lower than the $40 billion valuation the company was initially seeking. 
  • Crowdfunding and alternative asset investments combine as MEXI Craft Tequila Seltzer has joined the pre-IPO investment game. The company just launched a crowdfunding campaign that allows retail investors to own shares in the tequila brand. In 2020, Tequila and RTDs drove the two biggest alcohol industry trends, with 23 million 9 Liter cases of tequila sold and $8 Billion annual sales in RTDs, according to the company’s prospectus. Hard seltzers are displacing the beer industry’s market share. According to AC Nielson, 52% of beer drinkers have now converted to drinking seltzer part-time.

IIoT and IoT (Bill Curtis)

  • This week, Arm and PragmatIC Semiconductor (both in Cambridge) published an article in Nature about PlasticARM, the world’s first 32-bit processor on a flexible, polyamide substrate. The flexible processor was derived from Arm’s Cortex-M0+ with V6-M architecture using existing toolchains for development and debugging. It’s a complete SoC with ROM, RAM, AHB-LITE interconnect fabric, and a GPIO external bus interface. The chip runs M0 programs entirely on its internal memory. Implementation is PragmatIC’s “fab in a box” 0.8-um NMOS metal-oxide TFT process using a standard cell library. (Why NMOS? Half the transistors of CMOS.) Wafers are 200mm, and the die size is 9mm x 9mm. This advancement is relevant to IoT because it dramatically reduces the cost and complexity of making everyday objects “smart.” Imagine microcontrollers that cost pennies and integrated directly into products like food packages, shipping cartons, garments, and bandages. Although the technology is still in its infancy, it sure looks like a big step towards the “trillion device” future predicted by Masayoshi Son five years ago.

Personal Computing/ Collaboration (Anshel Sag) 

  • Apple’s iPhone S.E. 3rd generation is expected to have 5G. However, nobody knows whether or not Apple will include mmWave in it and whether it will replace Apple’s iPhone 12 Mini, which hasn’t sold as well as anticipated.
  • Opensignal posted a report that compares the speeds of all the leading 5G smartphones in Europe. The findings were very insightful, especially when looking at the differences between Samsung, Apple, Xiaomi, Oppo, and others.
  • The CEOs of TSMC and Intel have both communicated that they expect the chip shortage to continue until 2023, making sense since no company is expected to put meaningful capacity in place until then.
  • Epic Games, one of the world’s leading game engine companies and the creators of Fortnite, has acquired one of the biggest companies in the 3D asset marketplace space, Sketchfab. This will help Epic Games continue to build its Metaverse platform and possibly integrate it into Unreal Engine.

Quantum Computing (Paul Smith-Goodson)

  • No update

Security (Will Townsend)

  • The current U.S. administration signed a presidential executive order to protect critical infrastructure from cyberattacks. I believe this will be a boon for the cybersecurity sector, and companies such as Cisco, IBM, Microsoft, Palo Alto Networks, and Zscaler, among others, will reap the rewards. Although the order only outlines recommendations, it should serve as a solid framework for recent ransomware and supply chain attacks.
  • There is no end to startups that have designs on simplifying the deployment of networking within the enterprise. WiteSand emerged from stealth mode recently and aimed to consolidate on-premises networking tools into a cloud service. On the surface, this is not necessarily groundbreaking given the momentum of cloud within the enterprise for scalability and high availability. However, if WiteSand can deliver on its promise to consolidate network access control, monitoring, analytics, and configuration management into a single pane of glass, it could be pretty compelling.

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

  1. N.I. Wants To Help Customers Bring Data Out Of Their Silos With New Offerings, by Patrick Moorhead
  2. The Belgium Post Delivers Packages And On Digital Transformation, by Patrick Moorhead
  3. Intel Updates IDM 2.0 Strategy With New Node Naming And Transistor And Packaging Technologies, by Patrick Moorhead
  4. Box Wants To Disrupt The Esignature Market With ‘Sign’, by Patrick Moorhead
  5. Microsoft Announces Windows 365 Cloud Desktop At Its Inspire Partner Event, by Patrick Moorhead
  6. Zoom Set To Acquire Intelligent Cloud Contact Center Pioneer Five9, by Patrick Moorhead
  7. Dell Technologies Shares Environmental Sustainability Report Card, by Patrick Moorhead
  8. Yes, The World Does Need Another Consumer Digital Security Offering, by Patrick Moorhead
  9. Amazon’s Gives Its Take Of An ‘Ambient’ Alexa Experience, by Patrick Moorhead
  10. GlobalFoundries Building New Malta Fab And Expanding Current Capacity, by Patrick Moorhead
  11. GlobalFoundries Rebrands At The Right Time, For The Right Reason, by Patrick Moorhead
  12. Microsoft Announces Windows 365 Cloud Desktop at Its Inspire Partner Event, by Patrick Moorhead
  13. Microsoft Integrates Dynamic 365 And Teams Even More, by Patrick Moorhead
  14. Baltic Disruptors Connect The Dots With Cellular Infrastructure, by Will Townsend
  15. Quantum Triple Play For Honeywell And CQC- Major Error Correction Research, New World Record For Quantum Volume, And New VQE-Type Quantum Algorithm, by Paul Smith-Goodson
  16. IBM Beefs Up Its Cyber-Resilient Storage, by Steve McDowell

Blogs Published (MI&S)                                                              

  1. Zoho Updated Its B.I. And Analytics Suite For Its Unique Full Stack, by Patrick Moorhead
  2. Why I Have To State The Obvious: The Snapdragon Insider Smartphone Was Made For Insiders, by Patrick Moorhead
  3. Oracle Updates Fusion Cloud ERP And EPM, Racking Up New Customers In The Process, by Patrick Moorhead
  4. T-Mobile And Halo Team Up To Launch 5G Semi-AV Taxi Service, by Patrick Moorhead
  5. New Qualcomm CEO Cristiano Amon On The Future Of Qualcomm, Tech And 5G, by Patrick Moorhead
  6. Samsung Inks Massive Mobile Enterprise Deal With Walmart, by Patrick Moorhead
  7. Thoughts On Microsoft Windows 11 Preview Edition, by Patrick Moorhead
  8. Gee Rittenhouse And Cisco’s Vision To Democratize Security, by Will Townsend
  9. Mapping HPE’s Zero Trust Efforts To The Current Cyber Threat Landscape, by Matt Kimball
  10. Lenovo Thinkpad X1 Fold Reviewed: The Most Compact And Versatile 13″ P.C., by Anshel Sag
  11. Hewlett Packard Enterprise Aims High For 5G Automation, by Will Townsend
  12. What Is The Significance Of Google’s New Tau V.M.s? by Matt Kimball
  13. AT&T Puts Its 5G Future In The Azure Cloud, by Will Townsend
  14. The Samsung S21 Ultra: A Phone To Render Most Cameras Obsolete, by Anshel Sag

Research Paper:

Podcasts:

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

  • The G2 on 5G Podcast – Episode 61 – July 30, 2021
    • Nokia announces 2Q earnings – have they turned the 5G ship around? 
    • Whitehouse Infrastructure Deal, $65 billion agreed to for broadband
    • Samsung Networks and Verizon trial a fully virtualized 5G session using MIMO over C-band – can it help accelerate the operator’s mid-band spectrum deployment?
    • Qualcomm & Apple Earnings, how 5G devices affect that
    • Vodafone U.K. pegs the private 5G networking opportunity at ~6B pound sterling in the U.K. by 2030 – is it a realistic prediction?  
    • Huawei P50 Series uses Qualcomm’s Snapdragon 888, but no 5G
  • The G2 on 5G Podcast – Episode 60 – July 23, 2021
    • Spain nets a billion euros in a recent #5G low band spectrum auction – was it a success?
    • Apple iPhone S.E. 3rd generation might come with 5G in 2022? Does this mean it could launch its own 5G network?
    • AT&T, Verizon earnings recap – T-Mobile preview 
    • Open Signal – European 5G Smartphone Speed Race Results
    • AT&T and Dish strike $5B MVNO deal – what happened with T-Mobile?
    • Intel and TSMC expect chip shortage to continue into 2023. We explain why

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

  • N/A

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

Moor Insights & Strategy Podcast

 Press Citations: 

  1. Amazon / SiliconAngle https://siliconangle.com/2021/07/19/amazon-offers-cloud-based-san-ebs-io2-block-express-volumes/ (Steve McDowell) 
  2. Apple, Tesla / WSJ https://www.wsj.com/articles/apple-tesla-to-take-hit-from-chip-shortage-a-sign-of-problems-intensity-11627474416?mod=rss_Technology
  3. Apple, Chips / https://www.livemint.com/technology/tech-news/apple-tesla-to-take-hit-from-chip-shortage-a-sign-of-problem-s-intensity-11627488483808.html  
  4. Apple, Tesla, Chips / https://texasnewstoday.com/apple-and-tesla-are-the-latest-victims-of-chip-shortages/385915/  
  5. AMD, Earnings / https://siliconangle.com/2021/07/27/epyc-quarter-amd-beats-expectations-grabs-market-share-rivals-expense/  
  6. Calix/ Businesswire https://www.businesswire.com/news/home/20210722005073/en/SCTelcom-Sees-Thrilling-95-Percent-Take-Rates-for-Home-Security-Application-in-Calix-Revenue-EDGE-Suites-Driving-a-200-Percent-Increase-in-Adoption-of-Premium-Wi-Fi-Service  
  7. Fintech / Protocol https://www.protocol.com/newsletters/protocol-fintech/revolut-super-app (Melody Brue) 
  8. Google / CMSWire https://www.cmswire.com/digital-workplace/google-set-to-compete-with-microsoft-teams-for-the-enterprise/  
  9. Google, Earnings / Siliconangle https://siliconangle.com/2021/07/27/ad-spending-cloud-accelerate-alphabets-earnings/  
  10. Google / Reworked https://www.reworked.co/digital-workplace/google-set-to-compete-with-microsoft-teams-for-the-enterprise/  
  11. HPE / Siliconangle https://siliconangle.com/2021/07/21/5-insights-might-missed-hpe-discover-2021-hpediscover/  
  12. Huawei / PartnersWSJ https://partners.wsj.com/huawei/the-global-innovation-engine/security-unlocks-innovation/ (Will Townsend) 
  13. Intel / Fintechzoom https://fintechzoom.com/fintech_news_palantir-stock/palantir-stock-intel-restructures-to-create-units-for-gpu-high-performance-computing-fintech-zoom/  
  14. Intel, GlobalFoundries / TechTarget https://searchdatacenter.techtarget.com/news/252504276/Purported-Intel-GlobalFoundries-deal-targets-chip-shortage  
  15. Intel, Globalfoundries / Techcrunch https://techcrunch.com/2021/07/16/intel-rumored-to-be-in-talks-to-buy-chip-manufacturer-globalfoundries-for-30b/  
  16. Intel, GlobalFoundries / TechTarget https://searchdatacenter.techtarget.com/news/252504276/Purported-Intel-GlobalFoundries-deal-targets-chip-shortage  
  17. Intel / Siliconangle https://siliconangle.com/2021/07/22/intel-delivers-another-strong-quarter-investors-flee-short-term-profit-concerns/  
  18. Intel / Fintechzoom https://fintechzoom.com/fintech_news_nvidia-stock/intel-restructures-to-create-units-for-gpu-high-performance-computing/  
  19. Intel / Financial Times https://www.ft.com/content/1afe75ed-7867-447d-abb8-6eea3598b029  
  20. Intel / Business Journal https://www.bizjournals.com/phoenix/news/2021/07/27/intel-foundry-to-make-qualcomm-amazon-chips.html  
  21. Intel, Chips / Manufacturingglobal https://manufacturingglobal.com/technology/intel-aims-lead-world-chip-manufacturing-2025  
  22. Intel / Internetnews https://www.internetnews.com/enterprise/intel-maps-out-ambitious-comeback-plans/  
  23. Intel / Venturebeat https://venturebeat.com/2021/07/26/intel-aims-to-regain-chip-manufacturing-leadership-by-2025/  
  24. Microsoft / Windowscentral https://www.windowscentral.com/microsoft-silicon-it-time (Anshel Sag) 
  25. Pure Storage / The Register https://www.theregister.com/2021/07/26/learn_how_to_democratise_storage/  (Steve McDowell)  
  26. Samsung, Earnings / Siliconangle https://siliconangle.com/2021/07/28/samsung-reports-70-profit-jump-memory-chip-prices-increase/  
  27. Qualcomm, Earnings, 5G / Siliconangle https://siliconangle.com/2021/07/28/qualcomms-revenue-pops-5g-chip-sales-accelerate/ 
  28. Quantum / Semiengineering  https://semiengineering.com/the-great-quantum-computing-race/ (Paul Smith-Goodson) 
  29. Revolut / Protocol https://www.protocol.com/newsletters/protocol-fintech/revolut-super-app?rebelltitem=1#rebelltitem1 (Melody Brue) 
  30. T-Mobile   https://www.t-mobile.com/business/resources/articles/work-from-home-trends

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

  • HP Reverb G2 Omnicept
  • TCL 20 Pro 5G
  • Xilinx Kria KV260 Vision AI Kit

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

  • August 2021
    • American Banker: How one of America’s oldest banks is reshaping experiences in the digital age, August 3 (Melody Brue)
    • Vendor event, August 10 (Patrick Moorhead, Matt Kimball)
    • Samsung Galaxy Unpacked, August 11 (Patrick Moorhead, Anshel Sag)
    • AWS-HCL Cloud event, speaking, August 12 (Patrick Moorhead)
    • Semiconductor company architecture day, August 17 (Patrick Moorhead, Anshel Sag)
    • Hot Chips, Aug 22-24 (Steve McDowell)
    • Big 5G Event – August 31-September 3 (Will Townsend)
  • September 2021
    • Five9 CX Summit, September 1-2 (Patrick Moorhead)
    • 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)
    • 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 Advosory Council, November 16-18 (Patrick Moorhead) 
    • 5G Techritory Latvia – November 22-25 (in person)  (Will Townsend)
    • AWS ReInvent – November 29-December 5 (Will Townsend)

Subscribe 

  • Sign up here  to get specific AI/ML, Datacenter, Cloud Services, Client Computing, IIoT, Semiconductor content. 

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