Moor Insights & Strategy Analyst Weekly Update September 18, 2020

By Patrick Moorhead - September 22, 2020

I hope you all had a great week!

Hoping everyone is sheltering and safe. We continue to attend our events virtually during Covid-19 and have found it to be very successful.   

This week, I will be attending Microsoft Ignite and GlobalFoundries GTC.  Karl will be virtually attending Evercore Mobile AI.  Paul will be attending the 2nd International Conference on Quantum Natural Language Processing4th International Workshop on Quantum Compilation, and Quantum Computing for Quantum Chemistry.  Will will be attending Huawei Connect.

Last week, Matt and I virtually attended Cloudera Now, and I attended Box's analyst summit and Box Works.  Will participated at the MVNO World Congress, and Mark attended CEDIA Expo. Anshel attended Facebook Connect.

Next week I plan on attending VMWorld and Oracle Summit.

Our MI&S team published 24 deliverables last week: 

The press quoted us with 28 citations and 1 CNBC video. Journalists wanted to hear about AMD, Apple, Dell, edge computing, HP, HPE, NVIDIA – Arm deal, Oracle, and Pure Storage.

Quick Insights:

AR/VR (Anshel Sag) 

  • The Oculus Quest 2 is official and comes with a Qualcomm Snapdragon XR2, the fastest processor for mobile VR.
  • The Oculus Quest 2 comes with lots of improvements and has 50% higher resolution and a lower $299 price point. I am very impressed with the accessories being offered, including the Elite Strap with battery for more extended usage and a better weight balance.

Carrier/Wireless (Will Townsend) 

  • I believe MVNOs are well-positioned to capitalize on niche 5G applications and carve out interesting use cases as the tier one operators focus on broader service delivery. I moderated a panel with Three UK and Deutsche Telekom, and a fireside chat with a US MVNO this week at the MVNO World Congress, and it was an eye-opener.

Cloud Services/Enterprise apps (Rhett Dillingham) 

  • It was only a matter of time before Portworx would be acquired for the technology value of its highly differentiated container-native storage platform. This acquisition by Pure Storage, a leading container storage startups, may kickstart similar acquisitions- as some container and storage platform vendors decide the open source-based options in CNCF may not mature near-term at the level of some proprietary products.
  • AWS is offering more options in increasingly creative ways to enable the adoption of its Arm-based compute instance offerings. AWS has added the next generation of its burstable CPU performance instance family using its Graviton2 Arm-based processors. This was expected to eventually be added as AWS provides Graviton Arm-based options across its heaviest use instance types. Not expected was a first-time four-month AWS offer of free usage up to 750 hours per month (i.e., a single instance equivalent per month) of free trial usage designed to encourage cloud operators to test out the performance Graviton2 offers.


  • Storage- (Steve McDowell) 
    • Pure Storage buys container data services company Portworx for $370M in cash. An excellent acquisition for Pure, expanding its footprint in IT while intercepting the most significant trend (containers) to hit application architecture since the birth of the public cloud.  The acquisition should start returning on Pure’s investment immediately.  Portworx gives Pure a broader play in the cloud-native space, while also providing the company a competitive edge against its competitors — Pure is the now the only storage company with a native data services stack in its portfolio. 
    • Amazon announced a set of storage partners for its on-prem cloud extension offering, Outposts.  Companies providing “Outpost Ready” solutions include Pure Storage, Clumio, Cohesity, CTERA, Commvault, NetApp, and WekaIO.  That’s a pretty good list.  We’re watching to see how Outposts ultimately performs against the various as-a-service offerings that every tier-one vendor has in its portfolio.  IT has never had more flexibility. 
    • VAST Data unveiled its “disaggregated shared everything (DASE)” LightSpeed storage architecture this past week, showing off a product that aimed directly at the high-performance compute space.  VAST is delivering the first NFS solution for NVIDIA’s DirectStorage technology, which allows GPUs to consume data from storage without involving the host GPU.  VAST is touting numbers that show performance scalability up to 400GB/s for up to 160 GPUs.  As AI workloads invade the enterprise data center, solutions like this will ultimately side-by-side with more traditional storage technologies.         
  • Networking- (Will Townsend) 
    • My big takeaway from the Juniper Networks analyst event this week is the fact that the company is successfully leaning into its Mist Systems acquisition from a year ago to register big wins with retail, logistics & education, finding a way to grow out of a service provider-centric business.
  • Server- (Matt Kimball) 
    • NVIDIA buys Arm for 40B dollars.  What to make of it? Some quick thoughts –
      • I believe this bodes well for Arm and its ambitions in the datacenter.  Beyond the apparent pull, Neoverse will see through NVIDIA designed solutions; this acquisition validates the enterprise-grade performance and reliability of silicon built on the Neoverse N1 and E1 IP. 
        This acquisition puts NVIDIA in a powerful long-term position. When looking at the capabilities under the NVIDIA/Arm/Mellanox IP portfolio, the company is on a solid footing v its competitors.  
        Following on the above point, don’t pass judgment on this acquisition one or two years from now – think long term. The real fruits of this acquisition will undoubtedly take years to bear out – but bear out it will. 
        The big questions that need to be answered are around architectural licenses. How will NVIDIA support these agreements both short term and long term? I believe the company would honor and enable the Arm silicon ecosystem and enable hooks and build affinity for other NVIDIA IP. This could prove to greatly benefit the company as the edge-to-cloud market is poised to see strong growth. 
    • Did you happen to catch Michael Dell’s recent interview with CRN?  In this read, he talked about moving the vast majority of Dell Technologies offerings to consumption-as-a-service. And the company’s most recent earnings showed tremendous growth in its consumption business (flex-on-demand).  Seeing this message articulated by Michael Dell tells me a few things – 
      • HPE’s vision with GreenLake has been validated. While we knew this vision to be solid, Dell’s newly aggressive language shows the company recognizes the realness of this trend and the desire of enterprise IT to extend cloud-like consumption and deployment models. This follows Lenovo’s launch of TruScale last year. 
      • Dell Technologies is wisely executing its pragmatic approach to the server market by allowing the market to materialize and form and then quickly respond fully.  
        It is refreshing to see the major server vendors and IT solutions companies responding to the threat of the public cloud providers with such solutions that can be seen as such fundamental shifts from traditional business and GTM models. It shows a real awareness of the market and customers. 
      • And it’s almost more refreshing to see how these companies leverage its sell through partners, enabling these channels to find new business models with as-a-service. 

Home Automation/ Smart Home (Mark Vena) 

  • Kudos deserved here: Comcast will provide over 1,000 free Wi-Fi "lift zones" in community centers throughout the country, the company said earlier in the week; the program is designed to help connect low-income families to the internet educational purposes, as well as remote work and after-school care.
  • Gamers have been patiently waiting for more details on the PlayStation 5 since it was announced in 2019. We're finally getting to the 9th inning: the PS5 will ship on November 12, and it'll cost $400 for the digital-only version or $500 with Blu-ray; despite being scheduled to kick off on September 17, many retailers are already taking preorders -- but the demand is crashing sites, and many are already sold out.
  • The Sony PS5 new console is “99 percent” backward compatible with the PS4 games the company has tested on it so far; a Sony exec said earlier this week;  the company said it believed the “overwhelming majority” of PS4 games would be backward compatible with the PS5, so hearing that “99 percent” should work on the new console is assuring, if unspecific.
  • iRobot added a new robot vacuum to its lineup today. The Roomba i3+; the Roomba i3+ can empty what it collects on its own, similar to the Roomba i7+ and s9+. The bin can hold up to 60 days’ worth of dust and debris, and the bag will trap 99 percent of pollen and mold, iRobot says; the robo vac's intelligent navigation allows it to clean rooms in neat rows and travel across hard floors and carpet. If the charge runs low, the i3+ will recharge itself and gets back to cleaning.
  • Sad news for Nintendo gamers as it has discontinued every model of the 3DS, according to its Japanese website; the page listings for the New 3DS LL, New 2DS LL, and 2DS are still live, but each product lists “out of production” under its name. A message on the main page says that the entire series has ended production. It’s not clear when the change was made.

IIoT and IoT (Bill Curtis)

  • Ambiq just announced its Apollo4 SoC family of super low power processors. This fourth-generation SPOT (Subthreshold Power Optimized Technology) chips implement Arm’s Cortex-M4 processor complete with FPU and Artisan physical IP using TSMC’s 22nm UUL process. With an excellent power efficiency of 3uA/MHz, developers can move more processing to the edge while still achieving long battery life. In other words, an M4 can be used where an M0 would have been required. The chips are complete systems with memory, graphics, audio, BLE, security, and I/O.
  • The US House passed the IoT Cybersecurity Improvement Act of 2020 and sent it to the Senate. This bill requires NIST to create and publish standards and guidelines on the federal use of IoT devices and directs the OMB to review and align relevant government policies. The only exceptions are devices used for research purposes. The good news is the guidelines will formalize best practices for device security. For instance, the ability to patch is required. The bad news is that the Senate version of the bill has enormous loopholes allowing nonconformant devices that are “appropriate to function,” cheaper, secured using “alternative and effective methods,” or “higher quality.” In effect, these exceptions void the entire legislation. This proves again that everyone wants security, but nobody wants to pay for it.

Machine Learning/ Artificial Intelligence (Karl Freund) 

  • Last week's big news was the Shipping of the Qualcomm cloud AI100, the company’s first foray into the Datacenter in a big way. Qualcomm earned its chops in mobile, where every milliwatt counts. So, we should not be surprised to see that the AI 100 is incredibly low power, with the highest-end part only consuming 75W TDP. But what may surprise some is the performance, born from the Snapdragon AI engine, producing up to 400 Trillion Operations. Per Second. Very impressive. The part is sampling now to cloud Datacenter customers and will give all tenders a run for its money. Unlike startups, Qualcomm already enjoys a robust software ecosystem for inference. These guys are a serious contender.

Personal Computing/ Collaboration (Anshel Sag) 

  • US Cellular, Qualcomm, and Ericsson partnered to make a 3.1-mile mmWave connection in Wisconsin of 100 Mbps to test and promote the use of mmWave for rural 5G FWA.
  • Netgear had created a 5G hotspot branded the Nighthawk, which follows the Nighthawk line of hotspots with the 4G LTE model that came before it around Gigabit LTE started to roll out.
  • Apple announced the new iPads with the new Apple A14 processor but didn't make the tablets available until next month, which to me indicates there will be 5G versions of that iPad, but I suspect it will talk about 5G a lot and announce the 5G iPad with the new 5G iPhone
  • NVIDIA's acquisition of ARM is official and is going to disrupt the computing landscape massively. I believe this deal is excellent for NVIDIA, but I do think that Softbank's announcement, even before NVIDIA was officially a suitor, opened Pandora's Box for alternatives
  • AMD teased the new RX6000 GPU on Fortnite as the RTX 3080 was about to launch
  • The RTX 3080 brings about a 25-50% improvement in games and a more than 2X performance improvement over the RTX 2080 in apps like Octane and Blender

Quantum Computing (Paul Smith-Goodson)

  • IBM just joined the million qubit club by publishing its roadmap that leads to a massively parallel quantum computer. Although no dates have been mentioned, I believe such a machine is at least a decade or more away.  More details were available in IBM's roadmap for 127 qubit, 400 qubit, and 1000 qubit quantum processors. The 1000 qubit machine will be used as the fundamental building block for the million qubit computer. A thousand of them will likely be networked together, forming a machine that can probably occupy a couple of football fields. Beginning with the 1000 qubit machine, I believe we have a good chance of obtaining quantum advantage. 
  • The JPMorgan Chase quantum team is the first to use the unique capabilities (Mid-Circuit Measurement and Restore) of the Honeywell Model 0 trapped-ion quantum computer with its QCCD architecture. A paper (Quantum Simulation of Galton Machines Using Mid-Circuit Measurement and Reuse)  was published last week showing how JPMC simulated a galton machine using binomial distribution as an input to quantum registers. JPMC has pursued quantum aggressively because of its interest in financial applications. 
  • Seeqc, the Digital Quantum Computing company, secured $22.4 million Series A funds, led by the EQT Ventures fund and others. Seeqc also owns and operates a chip fabrication foundry and fabricates its 3D application-specific circuits and combines them with superconducting qubits, hardware, algorithms, and critical management functions. 
  • What makes this company unique is its experience in fabricating superconductor circuits. Its foundry is one of the few multi-layer superconductor commercial chip foundries in the world capable of producing complex SFQ integrated circuits.

Security (Chris Wilder)

  • N/A

Columns Published (Forbes, UPLOAD VR, and others)        

  1. Amazon Career Day Starts Today With 33,000 Available Jobs, by Patrick Moorhead
  2. Marvell And TSMC Collaborate More Closely To Bring 5nm To The Datacenter And 5G Infrastructure Markets, by Patrick Moorhead
  3. IBM Scores Major Energy Win With Schlumberger, by Patrick Moorhead
  4. It’s Official- NVIDIA Acquires Arm For $40 Billion To Create What Could Be A Computing Juggernaut, by Patrick Moorhead
  5. Attention CIOs: Stop Reacting And Start Being Proactive With Cybersecurity, by Chris Wilder
  6. IFA 2020 Delivers Several Significant Smart Home Announcements, by Mark Vena
  7. Qualcomm Launches Cloud AI Chip, by Karl Freund
  8. NVIDIA Needed A CPU, But Did It Need To Buy Arm To Get One? By Karl Freund
  9. President Trump's Q-12 Quantum Education Initiative For Middle And High School Students Is Seriously Underfunded, by Paul Smith-Goodson

Blogs Published (MI&S)                                                              

  1. HypeVR Becomes 3nfinite And Launches Enbly App Enabling Spatial Volumetric Video Over 5G, by Anshel Sag
  2. Intel’s 11th Gen Core Processors And ‘Evo’ Platform Brand Raises The Notebook Processor Competitive Stakes, by Patrick Moorhead
  3. Amazon Announces $18 Billion Investment To Help SMB’s To Kick Off ‘Accelerate’ Conference, by Patrick Moorhead
  4. The Ins And Outs Of Patents And Intellectual Property- A Six Five Insider With PatentSight’s Managing Director, by Patrick Moorhead
  5. HPE’s Impressive 80% Q3 GreenLake Growth Highlights Implications Of SAP HANA As-A-Service Deal, by Patrick Moorhead
  6. Cisco Enhancing Webex Speech Experiences With BabbleLabs Acquisition, by Patrick Moorhead
  7. DARQ Releases Complete Edition On Current And Next-Gen Consoles, by Zane Pickett
  8. Why Samsung Galaxy’s Smartphone Product Segmentation Makes Sense, by Patrick Moorhead
  9. Why A More Focused Synaptics Made Two Strategic Acquisitions, by Patrick Moorhead
  10. Qualcomm Found Guilty Of Aggressively Innovating By Ninth Circuit Court Of Appeals, by Patrick Moorhead
  11. NVIDIA’s New RTX 3000 Series – Faster, Bigger, Better And More Power, by Patrick Moorhead
  12. Amazon Makes Waves In Sustainability As Mercedes-Benz Signs The ‘Climate Pledge’, by Patrick Moorhead


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

Episode 21 - Sept 18th, 2020, with Special Guest Mark Vena

  • MVNO World Congress & 5G opportunities including Fixed Wireless Access - FWA
  • Netgear Mobile 5G Router on AT&T
  • Qualcomm + US Cellular Hit 3 Miles at 200 Mbps with mmWave in Rural Wisconsin Settings
  • AT&T Covid-19 Silver Lining – Learning to Adapt to the Unexpected -
  • Verizon buying Tracfone for $6B
  • Apple Event – Apple Watch & iPad including potential 5G iPad

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


SmartTechCheck Podcast by Moor Insights & Strategywith Mark Vena

SmartTechCheck Podcast (7-16-18) with guest, IEEE's Jay Iorio

  • Anshel Sag and Mark Vena for a robust podcast discussion about where AR and VR are headed.

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

NVIDIA Pays an Arm and a Leg

  • NVIDIA Arm $40B Megadeal
  • Oracle Earnings
  • IBM Red Hat Marketplace
  • Surface Duo Review First Impressions
  • Amazon Hiring Spree - Career Day For 33K jobs
  • Oracle Tik Tok Speculation

Press Citations: 

  1. AMD, University of Texas, Covid-19 research/ Austin American-Statesman:
  2. AMD, Radeon RX 6000, new design (Anshel Sag)/
  3. Apple, new solutions/ AFP (Daily Sabah):
  4. Apple, new solutions (Mark Vena)/ AP Newswire:
  5. Dell, layoffs (Steve McDowell)/Tech Target:
  6. Edge computing (Matt Kimball) / CSO Online-
  7. HPE, Aruba, IT, OT, edge (Will Townsend)/ IoT Evolution World:
  8. NVIDIA, Arm deal/ SDX Live:
  9. NVIDIA, Arm Deal/ SiliconAngle:
  10. NVIDIA, Arm deal/ PC World:
  11. NVIDIA, Arm deal/ Channel Futures:
  12. NVIDIA, Arm deal/ The Economist:
  13. NVIDIA, Arm deal/ SDX Central:
  14. NVIDIA, Arm deal, datacenters/ Data Center Frontier:
  15. NVIDIA, Arm deal, AI/ RCR Wireless:
  16. NVIDIA, Arm deal/ Tweaktown:
  17. NVIDIA, Arm deal/ WIRED:
  18. NVIDIA, Arm deal, skepticism/ PC Mag:
  19. NVIDIA, Arm deal/ The Verge:
  20. NVIDIA, Arm deal/ NextTV:
  21. NVIDIA, Arm deal/ Financial Post:
  22. NVIDIA, Arm deal/ Financial Times:
  23. NVIDIA, Arm deal/ VentureBeat:
  24. NVIDIA, Arm deal/ Fierce Electronics:
  25. NVIDIA, Arm deal/ Tech Zone:
  26. Oracle, Tik Tok/ SiliconAngle:
  27. Pure Storage, Portworx (Steve McDowell)/ Silicon Angle:



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

  • Apple iPad Pro, iPhone XS Max, iPhone SE, Watch Series 5 
  • BMW X3 Infotainment and ADAS 
  • Cisco Desk Pro
  • Cocopar 17” portable display
  • Dell XPS 17
  • Google Pixel 4a
  • Intel/Rivet Networks AX1650
  • Lenovo Flex 5G
  • Microsoft Surface Duo
  • NVIDIA Shield
  • Oura Ring
  • Samsung Galaxy Z Fold2, Note20 Ultra, Buds Live, Watch 3 

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

  • September 2020 
    • Microsoft Ignite, Sep 21-23 (Patrick Moorhead)
    • Evercore Mobile AI, presenting, Sept 20-21 (Karl Freund)
    • 2nd International Conference on Quantum Natural Language Processing, Virtual, Sept 21 (Paul Smith-Goodson)
    • Evercore Mobile AI Conference, speaker, Sept 22 (Karl Freund)
    • Huawei Connect, virtual, Sept 23-26 (Will Townsend)
    • 4th International Workshop on Quantum Compilation, Virtual, Sept 24 (Paul Smith-Goodson) 
    • GlobalFoundries GTC, Sept 24 (Patrick Moorhead)
    • Quantum Computing for Quantum Chemistry, Virtual, Sept 25 (Paul Smith-Goodson) 
    • AI HW Summit, September 28-29 and Oct 6-7, (Karl Freund – presenting a keynote and hosting a panel)
    • C-V2X Summit, Sept 29 (Anshel Sag) 
    • Oracle Summit, Sep 21-23 (Patrick Moorhead)
    • VMWorld, virtual, Sept 29-Oct 1 (Matt Kimball, Rhett Dillingham, Will Townsend, Patrick Moorhead)
  • October 2020 
    • Quantum Industry Day in Switzerland 2020, Oct 2 (Paul Smith-Goodson)
    • Dell Technologies Summit, Oct 5-7 (Matt Kimball, Patrick Moorhead, Matt Kimball, Will Townsend)  
    • NVIDIA GTC, Oct 5-9 (Karl Freund)
    • Arm DevSummit Virtual, Oct 6-8 (Patrick Moorhead, Matt Kimball)
    • 5G Americas - Oct 7-8 (Anshel Sag)
    • CALIX Partner Event (Mark Vena)
    • Adobe MAX Oct 20-22 (Anshel Sag)
    • Qualcomm 5G Summit, Oct 20-21 (Anshel Sag)
    • Dell Technologies World, Oct 21-22, virtual (Matt Kimball, Rhett Dillingham)
  • November 2020 
    • 5G Core Summit panel, Nov 2 (Will Townsend)
    • Quantum Techniques in Machine Learning, Virtual, Nov 11 (Paul Smith-Goodson)
    • 5G AI Telco Summit World panel, Nov 11 (Will Townsend)
    • 5G Techritory, Riga, Nov 11-12 (Will Townsend)
  • December 2020 
    • Marvell’s 2020 Industry Analyst Day, Dec 8 (Patrick Moorhead)
    • Q2B Practical Quantum Computing by QC Ware, December 8-10 (Paul Smith-Goodson)
    • 5G AI Telco Summit NYC, Dec 9 (Will Townsend)
    • 2020 Intel Industry Analyst Summit, Santa Clara, Dec 9-10 (Patrick Moorhead) 
  • January 2020
    • CES Virtual, Jan 11-14 (Patrick Moorhead, Mark Vena, Anshel Sag)
  • February 2020
    • 24th Annual Conference on Quantum Information Processing, Feb 1-3 (Paul Smith-Goodson)


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

The Team 

Analysts and Analysts In-Residence

  1. Patrick Moorhead, Founder, President, Principal Analyst; Broad technology coverage and deep insights into Personal Computing, IoT, Semiconductors, Cloud, Automotive 
  2. Bill Curtis, Analyst In-Residence, IIoT, and deep IoT technology 
  3. Rhett Dillingham, Senior Analyst, Cloud Services 
  4. Karl Freund, Senior Analyst, HPC, and Deep Learning 
  5. Matt Kimball, Senior Analyst, Datacenter Servers, CI, and HCI 
  6. Steve McDowell, Senior Analyst, Datacenter Storage, and Storage Technologies 
  7. Anshel Sag, Analyst; VR, PC Gaming, Mobile Platforms 
  8. Paul Smith-Goodson, Senior Analyst; Quantum Computing 
  9. Will Townsend, Senior Analyst; Carrier Equipment and Services, DC Networking 
  10. Chris Wilder, Senior Analyst, Security 
  11. Mark Vena, Senior Analyst, Smart Home, and Home Security 


  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, AP, AR, travel, writer 
  5. Lee LeClercq Williams, Business Associate 

+ posts

Patrick founded the firm based on his real-world world technology experiences with the understanding of what he wasn’t getting from analysts and consultants. Ten years later, Patrick is ranked #1 among technology industry analysts in terms of “power” (ARInsights)  in “press citations” (Apollo Research). Moorhead is a contributor at Forbes and frequently appears on CNBC. He is a broad-based analyst covering a wide variety of topics including the cloud, enterprise SaaS, collaboration, client computing, and semiconductors. He has 30 years of experience including 15 years of executive experience at high tech companies (NCR, AT&T, Compaq, now HP, and AMD) leading strategy, product management, product marketing, and corporate marketing, including three industry board appointments.