Moor Insights & Strategy Weekly Update Ending October 14, 2022

By Patrick Moorhead - October 18, 2022

I hope you all had a great couple of weeks.

Week before last, I traveled to Cupertino for advisory and last week NYC for Google Cloud Next and did the keynote for Cloudera Evolve. I also joined Will and Anshel in Seattle for the T-Mobile analyst summit. Steve attended Schneider Innovation Summit in Las Vegas. Matt virtually attended Dell Technologies Summit.

Matt, Steve, and I will attend Oracle Cloud World in Las Vegas this week. Matt and Steve will also be attending Open Compute Global Summit. Anshel and Will will attend the 5G Americas Analyst Forum in Dallas. It’s been a busy travel few months and will continue to be until December.

Over the last few weeks, our MI&S team published 46 deliverables:

13 (Forbes or eWEEK) insight columns
18 MI&S blogs
15 podcasts
0 research papers

The press quoted us with 38 citations. Journalists wanted to hear about AMD, Apple, Android, Artic Wolf, AWS, Bytedance, Cadence, Cybersecurity, Edge, Ethereum, Fintech, Google, HPE, Intel, Meta, Micron, Nutanix, Quantum, Samsung, and T-Mobile.

MIS Quick Insights:

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

Last week, the White House announced a Blueprint for an AI Bill of Rights to protect Americans from being harmed by AI earlier this week. It contains five guidelines for designing, using, and deploying automated and artificial intelligence (AI)-based tools.
- safe and effective systems
- algorithmic discrimination protections
- data privacy
- notice and explanation
- human alternatives, consideration, and fallback
These are guidelines for the US government, tech companies, researchers, and other stakeholders. The blueprint is not regulations (yet), but non-binding ideas can turn into policy.

AR/VR (Anshel Sag)

Carrier/Wireless

Datacenter:

Storage- (Steve McDowell)
- There’s a flash memory glut, with an oversupply of NAND parts sitting on foundry loading bays. Prices are expected to fall as much as 20% in the fourth quarter. To help mitigate the impact on their respective bottom lines, Micron and Kioxia are reducing production. Kioxia says that it will reduce wafer starts by approximately 30% by the end of this month. We’ll have to watch and see if prices stabilize. Until then, you should be able to get good deals on SSDs between now and the first part of 2023.
- IBM has breached the wall between traditional IBM and Red Hat as it brings Red Hat’s storage engineering teams over to IBM. IBM will use Red Hat’s robust cloud-native storage technology, which Red Hat releases as OpenShift Data Foundation, to supply cloud-native data services in IBM’s Spectrum Virtualize product. Red Hat will continue to use the technology in its OpenShift product, but IBM will be driving the roadmap. IBM will also take over Red Hat Ceph. This is a smart move for IBM. It allows them to leapfrog their current generation products with a solid cloud-native storage stack.
Networking- (Will Townsend)
- N/A
Server- (Matt Kimball)
- N/A

FinTech (Melody Brue)

Fintech startup funding, much like every other sector, came to a slow crawl recently, particularly in comparison to 2021, when one in five VC dollars went to fund Fintech companies. Yet, two startups focusing on the financial health of teens- Step, and GoHenry, have raised $300M and $50M, respectively, this week. Step offers a secured Visa card that allows customers under 18 to build credit history; GoHenry focuses on parent-guided financial education via an app and pre-paid debit card. These deals are significant as the industry has recently shifted focus to B2B, enterprise, and institutional applications, consolidation via M&A, APIs, and embedded finance (and super apps) as fewer consumer-facing fintechs have emerged. The under-18 segment is a new target for fintechs and neobanks who were typically competing with legacy FIs to be a customers’ first bank upon entering adulthood. While I love early financial education, I see challenges from a marketing and oversight/regulatory perspective that will need careful navigation.

IIoT and IoT (Bill Curtis)

Last week's big news in consumer electronics is the CSA’s long-awaited and much-anticipated release of Matter 1.0. It’s real. The Matter specification is complete and free to download – all 900 pages. Source code and tools are available on GitHub. Silicon companies (NXP, Silicon Labs, and others) have off-the-shelf platforms complete with software, security, and services that simplify product design and development. Big ecosystems (Apple, Amazon, Google, Comcast, SmartThings, and others) have already deployed millions of Matter-capable consumer products like smart speakers, thermostats, and hubs. After a software update to Matter 1.0, these products can connect and serve as routers for Matter-compliant devices from any manufacturer over Wi-Fi or Thread networks. Matter’s 280+ member companies are developing many products for release between now and CES, and multiple test houses are geared up to certify Matter compliance. As with any new technology, the road ahead is longer than some folks expect, and it’ll have its share of speedbumps, potholes, and sharp turns. However, I don’t see any dirt roads or detours ahead. The lights are all green.
In 2020, Arm spun off its IoT Services Group (ISG) as a new SoftBank company – Pelion. Pelion sharply focused on the SIM / eSIM connectivity products acquired from Stream Technology in 2018, leaving the device management and edge processing parts of ISG in limbo. Now we know what happened to the rich trove of IP, software, and services built by ISG during seven years of intensive development. This week, Izuma Networks announced the acquisition of the Pelion device and edge business, along with an investment from SoftBank that enables the new company to hit the ground running. After talking with Ed Hemphill, Izuma’s new CEO, I’m confident that the company has the vision and talent to derive significant value from the inherited software. Let’s see if the team can execute.
KNX is one of the most widely deployed building automation standards. You might be surprised to learn that KNX and similar standards use proprietary wired protocols running over twisted pair connections. KNX has a significant market share, with 8,000 devices from 500 manufacturers and over 100,000 certified technicians. Last week, at the “Light + Building” conference, KNX released the V3.0 Specification with IP networking and an open-source IPv6 stack. Finally, we have a roadmap for running KNX protocols over Ethernet, Wi-Fi, or Thread. This is real progress for an industry segment that is very late to the wireless party. I think it can catch up fast.
The Matter drumbeat is getting louder every week. Samsung and Google just announced support for Matter’s multi-admin capabilities. This feature allows multiple ecosystems to control and use Matter devices from any manufacturer. For example, you can buy a smart door lock and control it with either Google Home or SmartThings. This announcement is an interoperability milestone for Matter.

Personal Computing/ Collaboration (Anshel Sag)

Quantum Computing (Paul Smith-Goodson)

Patrick Moorhead and I attended Atom Computing's recent ribbon-cutting ceremony for its new research and development facilities in Boulder, Colorado. The building, labs, and current research being performed there are all quite impressive. There is space for 12 development labs in the building, and five of them are already being used for its next generation of neutral atom quantum machine that is expected to be announced by early 2023. The company estimates it will eventually have about 50 quantum researchers at that location dedicated to the next 2 to 3 generations of its quantum computer. Because Boulder is rapidly becoming a hub for quantum research, Atom is committing to a $100 million investment over the next three years. However, there are no plans to move its headquarters from Berkeley, California.
Quantinuum recently published some important research in error correction. Using physical qubits to form logical qubits is not new. Each logical qubit is formed from groups of entangled physical qubits that perform computations, while other qubits are tasked with error detection and correction. In its recent paper, Quantinuum researchers accomplished a first by constructing a logical entangling circuit that had higher fidelity than its physical counterpart. They first accomplished another quantum error correction by entangling two logical qubit gates in a fully fault-tolerant manner using real-time QEC. This action was repeatable, which is a necessity for any QEC solution. The research does not provide a complete QEC solution, but it is an important proof of concept that creates a new starting point for other researchers to build on.

Retail Tech (Melody Brue)

Social network Snapchat introduced a virtual try-on for Halloween costumes using the Fit Analytics augmented reality (AR) technology the company acquired earlier this year as AR makes its way deeper into the retail clothing space. Walmart also has a virtual try-on that allows customers to scan their image and see how the garment fits their body. Sensors on the garment allow for an overlay on the scanned image of the individual, showing a “true-to-size” fit. High-end brands like Nordstrom, Gucci, and others have implemented some AR into their shopping experiences this year, and many expect to use AR as a shopping aid during the holiday season. AR is a powerful tool for confidence in making shopping decisions before buying, particularly with Gen Z shoppers. However, as we saw with fintech and e-commerce during the pandemic, older generations should not be discounted as quick adopters.
Retailers are taking omnichannel to another level with live streaming and media networks. By 2023, nearly half of retailers will likely have integrated live-streaming capabilities into their commerce platforms. Live streaming, like AR, adds dimension to the e-commerce experience and increases conversion rates dramatically. Retail media networks are also a growing segment of the industry and a tool for live streams and omnichannel experiences. The networks could represent a huge chunk of overall digital advertising revenue and provide more control of advertisers’ ad efficiency data. Kroger, Target, Marriott, and others have media networks that include features such as CTV and video inventory. As tech platforms’ e-commerce strategies continue to change, dedicated media networks will likely become more common and, at some point, consolidate.

Security (Will Townsend)

Space (Paul Smith-Goodson)

Columns Published

IoT, Meet Blockchain—Knox Matrix Is Samsung's New Peer To Peer IoT Security Platform, by Patrick Moorhead
The Surface Laptop 4 Surprisingly Offers More To Users Than The MacBook Air M2, by Patrick Moorhead
Box Enhances Its Collaboration With Real-Time Features At BoxWorks 2022, by Patrick Moorhead
Rhode Island Wants To Make It Easier To Do Business Using Blockchain Technology, by Patrick Moorhead
Amazon Has A Solid Approach To Digital Wellbeing With Its New Halo And Kindle Devices, by Patrick Moorhead
NetSuite’s AP Automation Is A Powerful And Important Step In Its SuiteBanking Vision, by Patrick Moorhead
Intel’s Journey From 100 Billion To 1 Trillion Transistors Was Painted At The IntelON 2022 Event, by Patrick Moorhead
Lenovo Announces Innovative Devices That Target Hybrid Work, by Patrick Moorhead
AT&T’s Journey To Bridge The Digital Divide, by Will Townsend
Meta Quest Pro – A High-End Consumer Headset Masquerading As Enterprise?, by Anshel Sag
Lenovo’s Not Playing Around With Its New ThinkReality VRX Enterprise XR Headset, by Anshel Sag
Quantinuum Is On A Roll – 17 Significant Quantum Computing Achievements In 12 Months, by Paul Smith-Goodson
Izuma Networks Acquires SoftBank’s Pelion IoT Device Management Business, by Bill Curtis

Blogs Published (MI&S)

Evolve 2022: A Data Fanatic's Dream Come True, by Patrick Moorhead
If Qualcomm’s Automotive Investor Day Is Graduation Day, Nakul Duggal Is Its $30B Valedictorian, by Patrick Moorhead
Qualcomm Says It Held ‘Graduation Day’ For Its Automotive Business And I Agree, by Patrick Moorhead
The IBM LinuxOne Driving Sustainability Within Digital Transformation, by Patrick Moorhead
All Eyes On The Intelligent Edge At NVIDIA GTC 2022, by Patrick Moorhead
Is Ampere Computing Building The Apple Compute Of The Cloud Datacenter? by Patrick Moorhead
Cadence Brings Big Data And AI Analytics To SoC Verification, by Patrick Moorhead
Syngenta Aims To Make Its SAP ERP As Reliable As Water From A Tap, by Patrick Moorhead
Dynatrace CEO, Rick McConnell, On Why Observability Matters And How Its Unique, by Patrick Moorhead
Lenovo Doubles Down On The Datacenter As ThinkSystem Turns 30, by Matt Kimball
Arctic Wolf And Its Mission To Own The Cybersecurity Journey, by Will Townsend
PsiQuantum Has A Goal For Its Million Qubit Photonic Quantum Computer To Outperform Every Supercomputer On The Planet, by Paul Smith-Goodson
Arm Continues Its Datacenter Drive With Neoverse V2, by Matt Kimball
HypeVR Brings Industry-First Live Real-Time Photorealistic Volumetric Video Streaming To Life, by Anshel Sag
Oracle Brings HeatWave To AWS, by Matt Kimball
Analyst Take On Apple's iPhone 14 Lineup – Lots More Incremental Upgrades, Brilliant Marketing, by Anshel Sag
NVIDIA’s New H100 GPU Smashes Artificial Intelligence Benchmarking Records, by Paul Smith-Goodson
Peachtree Corners Takes 5G Use Cases To New Heights, by Will Townsend

Research Paper(s):

Podcasts:

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

DataCentric Podcast by Moor Insights & Strategy, with Matt Kimball and Steve McDowell

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

Moor Insights & Strategy Podcast

Press Citations:

Apple / CNET https://www.cnet.com/tech/mobile/a-portless-iphone-please-apple-dont-go-there/ (Anshel Sag)
Apple / CNET https://www.cnet.com/tech/mobile/apple-dream-for-iphones-could-actually-be-a-nightmare/ (Anshel Sag)
Apple / CNET https://www.cnet.com/tech/apple-is-living-rent-free-in-mark-zuckerbergs-head/
AMD / Infotechlead https://infotechlead.com/devices/amd-lowers-third-quarter-revenue-guidance-to-5-6-bn-74869 (Anshel Sag)
AMD / Siliconangle https://siliconangle.com/2022/10/06/amds-stock-drops-warns-third-quarter-revenue-shortfall/
AMD / Reuters https://www.reuters.com/article/amd-outlook/update-2-amd-revenue-shortfall-warning-signals-chip-slump-could-be-worse-than-expected-idUSL4N3172ZE (Anshel Sag)
AMD / Yahoo Finance https://finance.yahoo.com/news/amd-sees-lower-q3-revenue-203830305.html (Anshel Sag)
Android / AndroidCentral https://www.androidcentral.com/wearables/apple-doesnt-try-to-compete-with-android-oems-and-thats-why-its-far-more-successful(Anshel Sag)
Artic Wolf / Business News https://biz.crast.net/arctic-wolf-and-its-mission-to-own-the-cybersecurity-journey/ (Will Townsend)
AWS / ChannelFutures https://www.channelfutures.com/vertical-markets/azure-still-king-in-public-cloud-while-azure-grows-fastest-ibm-falls/?ppage=2
Bytedance / AndroidCentral https://www.androidcentral.com/gaming/virtual-reality/the-pico-4-is-better-than-the-oculus-quest-2-so-why-isnt-it-coming-to-the-us(Anshel Sag)
Cadence / Embedded https://www.embedded.com/cadence-hails-eda-2-0-with-unified-data-and-ai-driven-verification/
Cadence / Everythingrf https://www.everythingrf.com/news/details/15122-cadence-s-announces-the-jedai-platform-to-accelerate-development-of-ai-driven-chips
Cybersecurity / Cybersecuritydive https://www.cybersecuritydive.com/news/telecom-cloud-open-source-risks/632550/ (Anshel Sag)
Cybersecurity / Cybersecuritydive https://www.cybersecuritydive.com/news/telecom-cloud-open-source-risks/632550/ (Anshel Sag)
Edge, IoT / Yahoo https://www.yahoo.com/now/influential-thought-leaders-across-open-160000678.html (Will Townsend)
Edge, IoT / PRNewsWire https://www.prnewswire.com/news-releases/influential-thought-leaders-across-open-networking-edge-iot-ecosystem-to-keynote-one-summit-november-15-16-2022-301634494.html (Will Townsend)
Ethereum / TheRegister https://www.theregister.com/2022/09/24/ethereum_gpu_pricing/ (Anshel Sag)
Fintech / Protocol https://www.protocol.com/newsletters/protocol-fintech/kim-kardashian-emax-crypto-sec?rebelltitem=5#rebelltitem5 (Melody Brue)
Google / GetMeLiveNews https://getmelivenews.com/googles-pixel-phones-and-watches-are-considered-the-best-apple-alternatives-yet/73671/ (Anshel Sag)
Google / YahooFinance https://uk.finance.yahoo.com/news/google-pixel-phone-watch-best-170000894.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACpLE-imGaEjl443_JIOh0xkB2hLRH4Y8qgRM8OSB2hHfOFejltPIIVh-eYt9mBAP5oS4St7TSzbPJ2DLY_Bp3nYEcyzHBO2hA8O_MaAlizKEsoq8dFWMsrBHcDdfwMRA6n4OFapddGf7tYcvCJsf6YHD3rnCafMSoJ1lIYnrIKa (Anshel Sag)
Google / TechCentral https://techcentral.co.za/googles-pixel-7-hardware-is-great-theres-just-one-big-problem/216172/ (Anshel Sag)
Google / Bloomberg https://www.bloomberg.com/news/articles/2022-10-12/google-s-pixel-phone-and-watch-are-best-apple-alternative-yet?utm_source=google&utm_medium=bd&cmpId=google (Anshel Sag)
Google / CNET https://www.cnet.com/tech/mobile/heres-how-google-could-get-you-to-actually-buy-a-pixel-7-phone/ (Anshel Sag)
HPE / NetworkWorld https://www.networkworld.com/article/3675545/the-10-most-powerful-companies-in-enterprise-networking-2022.html (Will Townsend)
Intel / Siliconangle https://siliconangle.com/2022/09/27/intel-debuts-next-generation-desktop-cpus-promise-big-boost-gaming-multitasking-performance/
Meta / The Washington Post https://www.washingtonpost.com/technology/2022/10/11/meta-connect-headset-vr/ (Anshel Sag)
Meta / MarketWatch https://www.marketwatch.com/story/metas-new-vr-headset-will-cost-1-500-as-zuckerberg-sets-up-battle-with-apple-11665511178?mod=autos (Anshel Sag)
Micron / Siliconangle https://siliconangle.com/2022/09/29/micron-slash-spending-new-chipmaking-gear-50-counter-unprecedented-oversupply-problems/
Nutanix / SiliconAngle https://siliconangle.com/2022/10/07/expect-accelerate-hybrid-cloud-event-join-thecube-oct-12-nutanixhybridcloud/ (Steve McDowell)
Quantum / CNET https://www.cnet.com/tech/computing/quantum-computings-impact-could-come-sooner-than-you-think/ (Paul Smith-Goodson)
Samsung / The Times https://www.thetimes.co.uk/article/samsung-alert-heightens-fears-over-falling-consumer-demand-t8j7kc5c3 (Anshel Sag)
Samsung / SiliconAngle https://siliconangle.com/2022/10/03/samsung-announces-plans-mass-produce-1-4-nanometer-chips-2027/
T-Mobile / Motlow.edu https://www.motlow.edu/news/2022/motlow-recognized-with-tmobile-unconventional-award.html (Will Townsend)
T-Mobile / StreetInsider https://www.streetinsider.com/Business+Wire/T-Mobile+Honors+Top+Innovators+at+Inaugural+%E2%80%9CUnconventional%E2%80%9D+Awards/20646450.html (Will Townsend)
T-Mobile / Bloomberg https://www.bloomberg.com/press-releases/2022-09-30/t-mobile-honors-top-innovators-at-inaugural-unconventional-awards (Will Townsend)
T-Mobile / Barrons https://www.barrons.com/articles/t-mobile-honors-top-innovators-at-inaugural-unconventional-awards-01664504467 (Will Townsend)
T-Mobile / Businesswire https://www.businesswire.com/news/home/20220929005563/en/T-Mobile-Honors-Top-Innovators-at-Inaugural-%E2%80%9CUnconventional%E2%80%9D-Awards (Will Townsend)

Company:

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

Alienware m17 R5 AMD Advantage laptop
Apple iPhone 14 Pro
Dell 1080P camera
HP Dragonfly G3 (Intel-based)
HP EliteBook 865 G9 (AMD-based)
Samsung Galaxy Watch, Fold, Flip
Valve Steam Deck

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

October
- Oracle Cloud World, Las Vegas, October 16-19 (Matt Kimball, Patrick Moorhead, Steve McDowell)
- Open Compute Global Summit, October 18-20 (Matt Kimball, Steve McDowell)
- 5G Americas Analyst Forum – Dallas, October 19-20 (Anshel Sag, Will Townsend)
- Austin GP, Austin, October 21-24 (Patrick Moorhead)
- Money 20/20, Las Vegas, October 23-26 (Melody Brue)
- Lenovo IDG IAC, NYC, October 24-27 (Patrick Moorhead)
- Advisory, New York, October 25-27 (Paul Smith-Goodson)
- Arm DevSummit, San Francisco, October 25-27 (Steve McDowell)
- Snowflake Data Cloud World, Austin, October 27 (Melody Brue)
November
- Total Telecom Congress – London, November 1-2 (Will Townsend)
- Cisco Partner Summit, Las Vegas, November 1-2 (Patrick Moorhead)
- Honeywell HCE, Orlando, November 3-4 (Patrick Moorhead)
- Ceridian Insights 2022, Las Vegas, November 7-10 (Melody Brue)
- Cloudera Partner Council, Nashville, November 8-9 (Patrick Moorhead)
- SAP TechEd, Las Vegas, November 15-16 (Melody Brue)
- Qualcomm Tech Summit, Maui, November 15-17 (Patrick Moorhead)
- AWS re:Invent, Las Vegas, Nov 28-Dec 1 (Matt Kimball, Patrick Moorhead)
- 5G Techritory – Riga, November 29-December 1 (Will Townsend)
December
- Lattice Launch Event, San Jose, December 5 (Patrick Moorhead)
- Marvell Analyst Day, Santa Clara, December 6 (Patrick Moorhead)
- Financial Analyst Day, Orlando, December 7 (Patrick Moorhead)
- Palo Alto Networks Ignite – Las Vegas, December 12-15 (Steve McDowell, Will Townsend)
January
- CES 2023, Las Vegas, January 5-7 (Patrick Moorhead)

The Team

Analysts, Analysts In-Residence, Contributors

Patrick Moorhead, Founder, CEO, Chief Analyst; Broad technology coverage plus deep insights into Cloud & SaaS, Personal Computing, Semiconductors, Automotive
Bill Curtis, Analyst In-Residence, IIoT, and Deep IoT Technology
Matt Kimball, Principal Analyst, Datacenter Servers, CI, and HCI
Melody Brue, Principal Analyst, Financial Tech
Steve McDowell, Principal Analyst, Datacenter Storage, and Storage Technologies
Anshel Sag, Principal Analyst; VR, PC Gaming, Mobile Platforms
Paul Smith-Goodson, Principal Analyst; Machine Learning, A.I. and Quantum Computing
Will Townsend, Principal Analyst; Security, Carrier Services, Networking
Chris Wilder, Contributor, Security

Operations

Dan Pickens, Business Director
Paula Moorhead, Marketing Director, Website and Social Media
Walker Pickens, Media Relations, and Writer
Zane Pickett, Office Manager, AP, AR, travel, writer
Lee LeClercq Williams, Business Associate
Nigel Church, Business Associate, Writer, Editor
Jacob Freyman, Writer, and Researcher
Connor Kenyon, Six Five Sales & Business Development

Patrick Moorhead

+ 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.