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Breaking Analysis is a weekly editorial program combining knowledge from SiliconANGLE\u2019s\u00a0theCUBE<\/a>\u00a0with spending data from\u00a0Enterprise Technology Research<\/a>.<\/p>\n Branded as\u00a0theCUBE Insights, Powered by ETR<\/em>, the program is our opportunity to share independent, unfiltered editorial with SiliconANGLE, theCUBE and Wikibon communities. The program and conclusions we produce are data-driven, tapping ETR\u2019s proprietary spending data set.<\/p>\n Episode 221 \u2013 NVIDIA, Broadcom and the expanding breadth of AI <\/strong>\u00a0\u2013<\/strong> We attended both Nvidia Corp.\u2019s GTC conference and Broadcom Inc.\u2019s investor day this week where the artificial intelligence platform shift was on full display.<\/span><\/p>\n In our view, GTC24 was the most important event in the history of the technology industry, surpassing Steve Jobs\u2019 iPod and iPhone launches. The event was not the largest but, in our opinion, it was the most significant in terms of its reach, vision, ecosystem impact and broad-based recognition that the AI era will permanently change the world.<\/p>\n Meanwhile, Broadcom\u2019s first investor day underscored both the importance of the AI era and the highly differentiated strategies and paths that Nvidia and Broadcom are each taking. We believe Nvidia and Broadcom are currently the two best-positioned companies to capitalize on the AI wave and will each dominate their respective markets for the better part of a decade. But importantly, we see them each as enablers of a broader ecosystem that collectively will create more value than either of these firms will in and of themselves.<\/p>\n In this Breaking Analysis, we will share our perspectives on the state of AI and how Nvidia and Broadcom are each leading the way with dramatically different but overlapping strategies that may be headed for an eventual collision course.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 220 \u2013 Navigating NVIDIA & the AI Trade \u2013 Sell, hold or double down? <\/strong>\u00a0\u2013<\/strong> Heading into the second half of 2023, some investors felt that the semiconductor run up last summer was a harbinger for a broader tech rally. That thesis proved prescient and rewarded managers who took on risk at the time with leading firms in semiconductors, security and enterprise software. The question is, where do we go from here?<\/span><\/p>\n In this Breaking Analysis we welcome back Ivana Delevska, the founder and chief investment officer at Spear Invest, Nasdaq SPRX. Some have compared SPRX to a miniature version of Cathie Wood\u2019s ARKK fund. However SPRX is more sector agnostic where Delevska focuses more broadly on growth themes such as her current emphasis on cybersecurity, semiconductors, and enterprise software.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 219 \u2013 Why CrowdStrike is separating from the cybersecurity pack <\/strong>\u00a0\u2013<\/strong> It\u2019s been an interesting month in the cybersecurity space. The sector has been somewhat less affected by budget tightening these past twenty-four months and at the same time has benefitted from AI tailwinds. But in the past several weeks we\u2019ve seen some separation in key highflying cybersecurity names. Specifically, Palo Alto shocked the street last month with a $600M billings forecast surprise and sounded the alarm that there were cracks in its consolidation execution. This dragged down other consolidation players in sympathy, namely CrowdStrike and Zscaler. But our research shows that the dynamics facing these three companies are quite different. Of particular note, CrowdStrike\u2019s earnings print highlights the company\u2019s impressive momentum while recent negativity around Zscaler is a bit of a head scratcher for us, which we\u2019ll try to explain.<\/span><\/p>\n In this Breaking Analysis we take a more narrow look at the information security space and dig deeper into the continued success of CrowdStrike. With recent survey data from ETR, we continue to advance our premise that platforms beat products and we identify several levers that are powering CrowdStrike\u2019s path to $5B by FY 2026 and to $10B by the end of the decade.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 218 \u2013 The unplanned genius of Broadcom\u2019s route to AI dominance <\/strong>\u00a0\u2013<\/strong> Broadcom is perhaps the most unique company in the technology business. It doesn\u2019t simply chase markets that are on steep growth curves and can deliver short term ROI. Rather it goes after established markets with durable franchises. Broadcom focuses its R&D on serving customers in these markets with major engineering investments to achieve a dominant position in each of its target sectors. And sometimes, the company lucks out with this strategy and catches a wave accidentally by design.<\/span><\/p>\n In this Breaking Analysis we extract key nuggets from our sit down at MWC this week with Charlie Kawwas, president of Broadcom\u2019s Semiconductor Solutions Group, and we unpack the contrarian business technology model of Broadcom.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 217 \u2013 Cloud optimization wanes as AI slowly lifts off <\/strong>\u00a0\u2013<\/strong> The past twenty-four months have seen cloud spending face dual headwinds of macroeconomics and the ability to dial down resources as needed \u2013 i.e. cloud optimization. Nonetheless, the big four hyperscalers clocked in between $170 \u2013 $190B in IaaS and PaaS revenue last year depending on how you factor the leaked court documents suggesting Azure is much smaller than previously believed. Regardless, hyperscaler growth continued to outpace almost all markets, accelerating between 18-19% in revenue terms last year, despite their enormous size.<\/span><\/p>\n As we progress into 2024, IT decision makers are cautiously optimistic about spending levels, especially for the second half. All hyperscalers report that cloud optimization is slowing although pockets of cloud cost cutting remain. While AI gets all the headlines, its contribution to revenue is still a small fraction of the overall spending pie. For example, we estimate that Microsoft\u2019s AI services accounted for around $800M this past quarter. But the trajectory for AI services and the potential uplift looks promising for all four hyperscalers. We think collectively the generative AI uplift in cloud will surpass $10B this year.<\/p>\n In this Breaking Analysis we update you on our latest hyperscale cloud spending and market share data. We\u2019ll analyze the ETR survey data on cloud optimization, assess the Gen AI updraft for the big 3 US cloud players and look at some of the industry trend data on cloud spend by platform.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 216 \u2013 Intel Foundry is a bold bet filled with uncertainty <\/strong>\u00a0\u2013<\/strong> As an American, you can\u2019t help but root for Intel CEO Pat Gelsinger to succeed. His vision to bring semiconductor manufacturing leadership back to the United States is more than just a quaint nationalistic sentiment. Rather it\u2019s a strategic imperative for the country, its military, global competitiveness and access to future technological innovations in the AI era. But his strategy is dependent upon the success of Intel both as a designer and a leading manufacturer of advanced chips.<\/span><\/p>\n As such this choice puts Intel in a multi-front war with highly capable leaders in several markets, including names like AMD, NVIDIA, AWS, Google, Microsoft, Apple, Tesla and other chip designers\u2026even perhaps OpenAI. As well Intel competes with with established manufacturers like Taiwan Semiconductor and Samsung. Moreover, Intel\u2019s business model has been disrupted by Arm which has created a volume standard powered by the iPhone and mobile technologies. Finally, China, Inc. looms as a long-term competitor further underscoring the imperative.<\/p>\n But the trillion dollar questions are: 1) What are the odds that Intel\u2019s strategy succeeds; and 2) Are there more viable alternative strategies for both Intel and the United States?<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 215 \u2013 Slicing the Gordian Knot \u2013 A leap to real time systems of truth <\/strong>\u00a0\u2013<\/strong> In order to support the vision of the sixth data platform, that is, a capability that allows a globally consistent, real-time, intelligent digital representation of a business, we believe the industry must rethink the single system of truth.<\/span><\/p>\n Specifically, we envision a new data platform that marries the best of relational and nonrelational capabilities and breaks the multi-decades tradeoffs between data consistency, availability and global scale. Further, we see the emergence of a modular data platform that automates decision-making by combining historical analytic systems with transactions to enable artificial intelligence to take action.<\/p>\n In this Breaking Analysis, we welcome two innovators, Eric Berg, chief executive of Fauna Inc., and S. Somasegar, managing director at Madrona Ventures.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 214 \u2013 Enterprise Technology Predictions 2024 <\/strong>\u00a0\u2013<\/strong> Predictions about enterprise tech have never been more uncertain. They become even more challenging when you try to make forecasts that are measurable. Generally, our belief is we should be able to look back a year later and say with some degree of certainty whether the prediction came true \u2013 ideally with some quantifiable evidence to back that up.<\/span><\/p>\n In this Breaking Analysis and for the third year in a row, we collaborate with Erik Bradley of Enterprise Technology Research and to share our annual enterprise technology predictions.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 213 \u2013 2024 IT spending outlook shows cautious start with optimistic finish <\/strong>\u00a0\u2013<\/strong> According to recent spending intentions data from over 1,700 information technology decision-makers, executives anticipate a 4.3% growth in technology budgets for the year, which is an improvement from the 3.5% growth seen in 2023 and higher than the 3.8% expectation from October. However, the forecasts for 2024 are back-loaded, with Q1 2024 forecasts at 2.4%, indicating that the optimism is concentrated in the second half of the year.<\/span><\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 212 \u2013 Unifying intelligence in the age of data apps <\/strong>\u00a0\u2013<\/strong> We believe the future of intelligent data apps will enable virtually all organizations to operate a platform that orchestrates an ecosystem similar to that of Amazon.com. By this we mean dynamically connecting and digitally representing an enterprise\u2019s operations including its customers, partners, suppliers and even competitors. This vision includes the ability to rationalize top down plans with bottom up activities across the many dimensions of a business \u2013 e.g. demand, product availability, production capacity, geographies, etc. Unlike today\u2019s data platforms, which generally are based on historical systems of truth, we envision a prescriptive model of a business\u2019 operations enabled by an emerging layer that unifies the intelligence trapped within today\u2019s application silos. <\/span><\/p>\n In this Breaking Analysis, we explore in depth, the semantic layer we\u2019ve been discussing since early last year. To do so we welcome Molham Aref, the CEO ofRelationalAI.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 211 \u2013 Grading Our 2023 Enterprise Technology Predictions <\/strong>\u00a0\u2013<\/strong> Predictions about the future of enterprise tech are streaming to our inboxes, literally by the thousands. Most are thoughtful and we will review those prior to publishing our 2024 predictions later in January. As is our tradition, we try to make our own predictions more challenging by citing forecasts that are measurable and have either a numeric tied to them or a binary outcome. Our belief is if we make a prediction, you should be able to look back a year later and say with some degree of certainty whether the prediction came true or not. With some empirical evidence to back that up.<\/span><\/p>\n In this Breaking Analysis we grade the 2023 predictions we made with ETR\u2019s Erik Bradley. We look back at what we said in January about the macro IT spending environment, cost optimization, security, generative AI, cloud, blockchain, data platforms, automation and tech events.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 210 \u2013 David vs Goliath reimagined \u2013 OpenAI\u2019s approach to AI supervision <\/strong>\u00a0\u2013<\/strong> Artificial general intelligence, or AGI, has people both intrigued and fearful. As a leading researcher in the field, last July, OpenAI introduced the concept of superalignment via a team created to study scientific and technical breakthroughs to guide and ultimately control AI systems that are much more capable than humans. OpenAI refers to this level of AI as superintelligence. Last week, this team unveiled the first results of an effort to supervise more powerful AI with less powerful models. While promising, the effort showed mixed results and brings to light several more questions about the future of AI and the ability of humans to actually control such advanced machine intelligence.<\/span><\/p>\n In this Breaking Analysis we share the results of OpenAI\u2019s superalignment research and what it means for the future of AI. We further probe ongoing questions about OpenAI\u2019s unconventional structure which we continue to believe is misaligned with its conflicting objectives of both protecting humanity and making money. We\u2019ll also poke at a nuanced change in OpenAI\u2019s characterization of its relationship with Microsoft. Finally we\u2019ll share some data that shows the magnitude of OpenAI\u2019s lead in the market and propose some possible solutions to the structural problem faced by the industry.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 209 \u2013 Moving beyond separation of compute & storage\u2026Journey to the 6th data platform <\/strong>\u00a0\u2013<\/strong> We believe today\u2019s so-called modern data stack, as currently envisioned, will be challenged by emerging use cases and AI-infused apps that begin to represent the real world, in real time, at massive data scale. To support these new applications, a change in underlying data and data center architectures will be necessary, particularly for exabyte scale workloads. Today\u2019s generally accepted state of the art of separating compute from storage, must evolve in our view to separate compute from data and further enable compute to operate on a unified view of coherent and composable data elements. Moreover, our opinion is that AI will be used to enrich metadata to turn strings (i.e. ASCII code, files, objects, etc.) into things that represent real world capabilities of a business. <\/span><\/p>\n In this Breaking Analysis we continue our quest to more deeply understand the emergence of a sixth data platform that can support intelligent applications in real time. To do so we are pleased to welcome two founders of VAST Data, CEO Renen Hallak and Jeff Denworth. VAST just closed a modest $118M financing round that included Fidelity at a valuation of ~$9B, which implies a quite minor change to the cap table.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 208 \u2013 re:Invent \u201923 underscores a new simplicity mandate for AWS <\/strong>\u00a0\u2013<\/strong> Generative AI has created a new mandate in enterprise tech with significant implications for all companies generally and AWS specifically. Amazon\u2019s powerful playbook based on agility, developer choice, power, scale, reliability and security must now evolve to accommodate simplicity and coherence for mainstream customers. This imperative came into clear focus at AWS re:Invent \u201923. AWS continues to innovate at a fast pace, but must now do so in a changing customer environment that increasingly values direct user productivity gains through software.<\/span><\/p>\n In this Breaking Analysis we share our take on how AWS is navigating this challenge. We\u2019ll review Amazon\u2019s strategy to compete in the nascent Gen AI era and we\u2019ll provide commentary on the chess moves it\u2019s making with Anthropic, Nvidia and other partners to maintain its leadership position. We\u2019ll also discuss the challenges of doing so as a $90+B giant in a fast-moving market.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 207 \u2013 The OpenAI meltdown\u2026Winners and losers in the battle for AI supremacy <\/strong>\u00a0\u2013<\/strong> Conventional wisdom says Microsoft is the big winner in the recent OpenAI saga. We don\u2019t quite see it that way. Both Microsoft and OpenAI are in a worse position today than they were last Thursday, prior to the firing of OpenAI CEO Sam Altman and the ongoing public drama that ensues. Microsoft and OpenAI had a huge lead in market momentum, AI adoption and feature acceleration and were setting the narrative in AI.<\/span><\/p>\n Our discussions with customers and industry insiders leads us to conclude that the duo has put its substantial lead at risk. While Satya Nadella is making lemonade from lemons, the window was just cracked open for the competition and it\u2019s more clear than ever that one large language model will not rule them all.<\/p>\n In this Breaking Analysis we weigh in on the impacts of the OpenAI meltdown with a deeper look at the customer perspective and how it alters the competitive landscape in the battle for AI supremacy. As well, the amazing data team at ETR has run a quick survey of OpenAI Microsoft customers to gauge reactions and we\u2019ll share that fresh data.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 206 \u2013 The copilot era takes flight at Microsoft Ignite 2023 <\/strong>\u00a0\u2013<\/strong> Microsoft Ignite 2023 was one part a celebration of yearlong technological innovations, one part announcing the general availability of previously announced products, one part vision, one part ecosystem and four parts copilots everywhere. Copilots promise an historic software-led productivity increase. Perhaps for the first time in industry history we\u2019re seeing huge demand for software coincide with the ability to make it easier to write software. Just as AWS turned the data center into an API, copilots are turning software development into natural language, enabling many more people to create. The implications on productivity are massive and we believe will kick off a new wave of growth that will become increasingly noticeable throughout 2024. <\/span><\/p>\n In this Breaking Analysis we give you our impressions of Microsoft Ignite 2023. theCUBE Research Analyst George Gilbert and CUBE Collective contributor Sarbjeet Johal both weighed in for this episode and we\u2019ll also share some recent ETR data that shows the progression of some of the major AI players in the past twelve months and the the relative impact Gen AI has had on each of their businesses.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 205 \u2013 IBM turns the corner with Watson, why 2.0 is a breakthrough opportunity <\/strong>\u00a0\u2013<\/strong> With Watson 1.0, IBM deviated from the silicon valley mantra, fail fast, as it took nearly a decade for the company to pivot off of its original vision. In our view, a different dynamic is in play today with Watson 2.0 \u2013 i.e. watsonx. IBM\u2019s deep research in AI and learnings from its previous mistakes, have positioned the company to be a major player in the Generative AI era. Specifically, in our opinion, IBM has a leading technological foundation, a robust and rapidly advancing AI stack, a strong hybrid cloud position (thanks to Red Hat), an expanding ecosystem and a consulting organization with deep domain expertise to apply AI in industry-specific use cases. <\/span><\/p>\n In this Breaking Analysis we share our takeaways and perspectives from a recent trip to IBM\u2019s research headquarters. To do so we collaborate with analyst friends in theCUBE Collective, Sanjeev Mohan, Tony Baer and Merv Adrian. We\u2019ll also share some relevant ETR spending data to frame the conversation.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 204 \u2013 The Gen AI power law \u2013 How data diversity influences adoption <\/strong>\u00a0\u2013<\/strong> Our research indicates that the adoption of generative AI is occurring across a variety of frameworks with diverse deployment models, data sets and domain specificities. The transformative power of generative AI for industries is colossal, and we are convinced that AI will gravitate to where data lives. The power law of Gen AI, developed by theCUBE Research team, describes the adoption patterns we see emerging in the cloud, on-premises and at the edge with a long tail of highly specific domain models across every industry. <\/span><\/p>\n In this Breaking Analysis we revisit the Gen AI power law which informs how we see adoption happening within industries and organizations globally. We introduce new survey data from ETR that looks at some of the vendors being adopted or considered with a special peek into the emerging technology sector with data on Hugging Face, Anthropic, Cohere and Jasper. We also comment on the adoption of Meta\u2019s Llama 2 and the potential impact of open source and other third parties on the shape of the curve. We share our estimates of Microsoft Azure\u2019s AI revenue impact, which we see approaching a $2B run rate exiting 2023. Finally, we dig into the impact of retrieval augmented generation (RAG) using real world examples with some caveats of RAG implementations that practitioners should consider.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 203 \u2013 AI revenue riddle \u2013 Azure sees gains, when will other cloud titans see the surge? <\/strong>\u00a0\u2013<\/strong> In 1987, Nobel Prize-winning economist Bob Solow famously observed, \u201cYou can see the computer age everywhere but in the productivity statistics.\u201d This proclamation became known as the productivity paradox. Ironically, Solow\u2019s statement preceded the greatest productivity boom since the dawn of the computer age which subsequently came to fruition in the 1990\u2019s. It can be argued that a similar pattern is being seen today where AI is everywhere but generally not showing up in earnings numbers or productivity statistics\u2026yet. <\/span><\/p>\n In this Breaking Analysis we squint through the latest earnings reports from Microsoft, Alphabet and Amazon to understand what\u2019s happening in cloud, evaluate the impact or lack thereof of AI on cloud earnings momentum and explain how we think about the future impact of generative AI and cloud.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 202 \u2013 From hype to reality, the true state of AI adoption <\/strong>\u00a0\u2013<\/strong> MIT professor and economist Erik Brynjolfsson said recently that he\u2019d be disappointed if AI didn\u2019t lift the current anemic 1.2% productivity growth rate to 3% or even 4%. This would be a good thing for business and government as it could potentially help with the labor shortage, drive earnings growth and increase tax revenues, which would ostensibly help address current debt levels. This is one of the promised impacts of AI. While the hype surrounding Gen AI has narrowly propped up certain sectors of the market, like AI startups and the magnificent seven, the macro effects have not been felt thus far as adoption remains largely experimental. <\/span><\/p>\n In this Breaking Analysis and ahead of Supercloud 4, ETR\u2019s Erik Bradley and Daren Brabham join the program to share the latest trends on AI adoption, how Gen AI is being used, some of the deployment models and the AI leaderboard based on spending momentum and presence in the market.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 201 \u2013 Get Ready for the Sixth Data Platform <\/strong>\u00a0\u2013<\/strong> In the next 3-5 years, we believe a set of intelligent data apps will emerge requiring a new type of modern data platform to support them. We refer to this as a sixth data platform. In our previous research we\u2019ve used the metaphor \u201cUber for everyone\u201d to describe this vision; meaning software-based systems that enable a digital representation of a business.<\/span><\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 200 \u2013 Lower for longer\u2026Tech spending remains tepid <\/strong>\u00a0\u2013<\/strong> We\u2019re getting used to the phrase, \u201chigher for longer,\u201d referring to the realization that interest rates are expected to remain elevated for a period of time. This trend is having an inverse effect on enterprise tech spending growth rates. Prior to the Fed\u2019s tightening binge for example, IT decision makers (ITDMs) in aggregate expected annual technology spending to increase by 7.5%. Eleven fed interest rate hikes later, ITDMs estimate that their 2023 budgets will be up only 2.9%, with an expectation, or perhaps it\u2019s a wishful hope, that their budgets will increase 3.8% in 2024. <\/span><\/p>\n In this our 200th Breaking Analysis, we preview the current spending climate and where AI fits in relation to other sectors. We\u2019ll also share with you a snapshot of the leaders in terms of spending velocity for their platforms; and how their performance compares to peers relative to earlier survey periods.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 199 \u2013 Cisco Splunk under the microscope, joint customers weigh in <\/strong>\u00a0\u2013<\/strong> In this special Breaking Analysis, theCUBE\u2019s Dave Vellante talks with Enterprise Technology Research\u2019s Erik Bradley as he shares the results of ETR\u2019s recent flash survey assessing joint customer perceptions and likely spending actions as a result of the Cisco acquisition of Splunk.<\/span><\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 198 \u2013 Bob Muglia on Uber for everyone\u2026how the future of data apps will evolve <\/strong>\u00a0\u2013<\/strong> The future of intelligent data applications: Uber for everyone.<\/span><\/p>\n In June, we put forth our scenario about \u201cUber for all.\u201d We believe a new breed of data apps is emerging and we used Uber as an example where data about people, places and things is brought together in a data-coherent, real-time system.<\/p>\n In this special Breaking Analysis, analysts Dave Vellante and George Gilbert sat down with friend , entrepreneur, investor and software executive, Bob Muglia. Bob formerly worked at Microsoft, was the CEO of Snowflake and is a visionary trend spotter.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 197 \u2013 Cloud security powers CrowdStrike momentum, Gen AI is next <\/strong>\u00a0\u2013<\/strong> George Kurtz is pumped up\u2026and why not? CrowdStrike\u2019s business appears to be on a fast track and entering a new phase of growth, despite the difficult macro and elongated sales cycles. The company\u2019s products are considered best in class, its business is growing steadily and an improved profitability and cash flow outlook had investors excited, at least up until this week. A still challenging environment and a rich 13X revenue multiple perhaps led to some profit taking, but Gen AI could be the next catalyst for the company. In the race to close the SecOps staffing gap, CrowdStrike has what appears to be a strong play with a natural language-based intelligent assistant known as Charlotte AI. <\/span><\/p>\n In this Breaking Analysis we update our scenario on security leader CrowdStrike. We\u2019ll review the company\u2019s recent progress, share survey data that shows where it is strong and where there may be icebergs ahead. And we\u2019ll preview Fal.Con 2023 which takes place next week in Las Vegas.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 196 \u2013 Copilot or competitor \u2013 How gen AI bolsters and buffets UiPath\u2019s Northstar <\/strong>\u00a0\u2013<\/strong> UiPath\u2019s recent earnings beat and raise provides some evidence that thus far, Gen AI has not been dilutive for the company. As an early leader that is transforming beyond RPA toward end-to-end enterprise automation, UiPath, like all automation providers, has always faced adoption headwinds beyond isolated deployments. In this sense, Gen AI should bolster adoption and be a positive force. The flip side is that widely available tools like chatbots and generalized foundation models could eat away at the low end of the automation TAM, highlighting the urgency for companies like UiPath to move up market and accelerate innovation that brings differentiation from commoditized tools; and, importantly, create distance from embedded AI within mainstream enterprise SaaS platforms like Slack GPT and Salesforce Einstein. <\/span><\/p>\n In this Breaking Analysis we briefly review the recent earnings print from UiPath. We\u2019ll look at ETR survey data that shows Microsoft Power Automate\u2019s impact on the automation market and how it is forcing UiPath to target larger accounts with a more functional product set. As well we\u2019ll look at the impact that AI is having in these larger accounts and test UiPath management assertions that Gen AI will be a tailwind for the company.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 195 \u2013 Google goes all in on the AI cloud <\/strong>\u00a0\u2013<\/strong> At Cloud Next, Google showcased its strong leadership position in data and AI. In our view, Google\u2019s messaging, demos and tech-centric narrative have broad appeal for developers and next generation startups. As well, the company\u2019s focus on solutions, contrasts its strategy to the typically disjointed services we\u2019ve seen from AWS over the past decade. Google also showed off an expanded ecosystem of GSIs and smaller CSPs, encouraging the broad use of Google\u2019s kit globally. While Google remains a distant third in the Iaas\/PaaS race, with revenue one-fifth the size of AWS, it is playing the long game and betting the house on AI as a catalyst to its cloud future.<\/span><\/p>\n In this Breaking Analysis we unpack the key takeaways from Google Cloud Next with Rob Strechay and George Gilbert. We\u2019ll share ETR data that positions Google\u2019s AI relative to other leaders and we\u2019ll contrast Google\u2019s data-centric strategy with traditional architectural models.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 194 \u2013 Snowflake has Momentum with AWS & Microsoft\u2026Why Google may not be Next <\/strong>\u00a0\u2013<\/strong> Recent earnings prints from Amazon and Snowflake, along with new survey data, have provided additional context on top of the two events that Snowflake and Databricks each hosted last June. Specifically, we believe that the effects of cloud optimization are still being felt but are nearing the end of peak negative impact on cloud companies.<\/span><\/p>\n Snowflake\u2019s recent renewal with Microsoft better aligns sales incentives and should improve the company\u2019s traction with Microsoft Azure, a platform that has long favored Databricks. Google however remains a different story as its agenda is to build out its own data cloud stack, rather than supporting Snowflake\u2019s aspirations.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 193 \u2013 VMware\u2019s Future \u2013 Navigating Multi cloud Complexity & GenAI Under Broadcom\u2019s Wing <\/strong>\u00a0\u2013<\/strong> The FTC continues to drag its feet on approving Broadcom\u2019s acquisition of VMware. Ironically, in our view, these delays only hurt the very competitive environment the FTC claims to be protecting. The AI era is accelerating at a breakneck pace and the big 3 hyperscale cloud vendors already have a sizable lead on legacy incumbents. If preserving competition is truly the agenda of the U.S. government, it should recognize that VMware, its enterprise ecosystem and market forces have the potential to neutralize cross cloud complexity and give customers a viable alternative to increasingly powerful public cloud players. <\/span><\/p>\n In this Breaking Analysis and ahead of VMWare Explore 2023, we revisit our views on Broadcom\u2019s rationale and likely actions post acquisition. We\u2019ll share current ETR survey data to place VMware\u2019s position in context to the major cloud players, speculate on its AI agenda and give a preview of next week\u2019s VMware Explore. To do so we welcome CUBE analyst Rob Strechay and friend , Zeus Kerravala, principal of ZK Research.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 192 \u2013 Cloud vs. On-Prem Showdown: The Future Battlefield for Generative AI Dominance <\/strong>\u00a0\u2013<\/strong> The data from enterprise customers is clear but conflicted. While 94% of customers say they\u2019re spending more on AI this year, they\u2019re doing so with budget constraints that will steal from other initiatives. As well, the choice of where customers plan to run generative AI is split almost exactly down the middle in terms of public cloud vs. on-premises\/edge. Further complicating matters, developers report the experiences in the public cloud with respect to feature richness and velocity of innovation has been outstanding. At the same time, organizations express valid concerns about IP leakage, compliance, legal risks and cost that will limit their use of the public cloud. <\/span><\/p>\n In this Breaking Analysis we\u2019ll share the most recent data and thinking around the adoption of large language models and address the factors to consider when thinking about how the market will evolve. As always, we\u2019ll share the latest ETR data to shed new light on key issues customers face balancing risk with time to value.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 191 \u2013 Tech Stocks Beyond the Magnificent Seven <\/strong>\u00a0\u2013<\/strong> After a tough 2022, the first half of 2023 has shown impressive strength paying off earlier technology bets. For sure investors in the so-called Magnificent Seven, i.e. Apple, Alphabet, Amazon, Microsoft, Meta, Nvidia and Tesla have been rewarded. But sharp investors have sought alpha beyond these names, riding the wave of secular trends in AI, cybersecurity, cloud infrastructure and software as well as other emerging spaces like cleantech and robotics. As we enter the second half of 2023, the run up in tech combined with macro uncertainty has many investors taking a cautious posture. But prudent earnings guidance sets up for a positive outlook in the mid-term, especially for those companies that can capitalize on the AI wave.<\/span><\/p>\n In this Breaking Analysis we\u2019re pleased to have back, founder and Chief Investment Officer of Spear Invest, Ivana Delevska to assess the current state of the market and explore how this investor is playing AI\u2019s rising tide. We\u2019ll also analyze ETR data to drill deeper into semis, cloud infrastructure, generative AI, cybersecurity and Snowflake.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 190 \u2013 What Leaked Court Docs Tell us About AWS, Azure & Google Cloud Market Shares <\/strong>\u00a0\u2013<\/strong> Recently leaked court documents during the Microsoft Activision hearing require us to revisit our cloud forecasts and market share data. The poorly redacted docs, which have since been removed from public viewing, suggest that Microsoft\u2019s Azure revenue is at least 25% lower than our previous estimates. As a result, we\u2019ve cut and revised our Azure revenue figures which in turn increases AWS\u2019 big 4 hyperscale cloud market share. Our new estimates show that AWS maintains a greater than 50% share of revenue through 2023. While the change also helps Google Cloud, its market share is only modestly affected. <\/span><\/p>\n In this Breaking Analysis we update our hyperscaler cloud revenue estimates and market share data. We\u2019ll also explain how the ETR data on cloud should be interpreted in this context and look forward to potential catalysts for cloud growth, including acceleration in Q4 attributable to generative AI.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 189 \u2013 AI gives cyber attackers the advantage\u2026for now <\/strong>\u00a0\u2013<\/strong> Cloud complexity, tools sprawl and the AI awakening further tip the balance in favor of cyber attackers. Combined with corporate inertia, AI-washing, LLM inconsistency and the pace of change, we believe for now anyway, adversaries have the advantage over defenders. Moreover, macro spending headwinds continue to force organizations to make budget tradeoffs, not the least of which is how to fund AI experiments and deployments. Notably, however, 45% of organizations are using LLMs in production for use cases that may very well improve the productivity of SecOps teams in the long run and accelerate the cat and mouse game back to a state of quasi-equilibrium. <\/span><\/p>\n In this Breaking Analysis we share key takeaways from Supercloud 3 \u2013 AI meets cloud security \u2013 and put forth new spending data from the latest ETR survey that shows which security firms are best positioned in the AI race to capitalize on the wave.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 188 \u2013 AI won\u2019t be a winner takes all market <\/strong>\u00a0\u2013<\/strong> The AI heard \u2019round the world has put the machine intelligence sector back in the spotlight. But when you squint beyond the press hype, the data shows that artificial intelligence is now the number one sector in terms of relative spending velocity in the ETR taxonomy. Normally market hype leads deployments, but the data suggests that spending activity and market penetration for AI are coinciding with the hype. While hyperscale cloud players are reaping the rewards, we think this is a rising tide that\u2019s going to lift all AI ships, those both plainly in sight and others that may not be so visible.<\/span><\/p>\n In this Breaking Analysis we dig deeper into the AI space with spending data from ETR and one of the best minds in tech generally, and AI specifically, Jeff Jonas, CEO, founder, and chief scientist at Senzing.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 187 \u2013 Connecting the dots on the emerging Databricks tech stack <\/strong>\u00a0\u2013<\/strong> The recent Databricks Data+AI Summit attracted a large audience and, like Snowflake Summit, featured a strong focus on large language models, unification and bringing AI to the data. While customers demand a unified platform to access all their data, Databricks and Snowflake are attacking the problem from different perspectives. In our view, the market size justifies the current enthusiasm seen around both platforms but it\u2019s unlikely that either company has a knockout blow for the other. This is not a head on collision. Rather Snowflake is likely years ahead in terms of operationalizing data. Developers can build applications on one platform, like Oracle when it won the market, that perform analysis and take action. Databricks likely has a similar lead in terms of unifying all types of analytic data \u2013 e.g. BI, predictive analytics & generative AI. Developers can build analytic applications across heterogeneous data, like Palantir today. But they have to access external operational applications to take action. <\/span><\/p>\n In this Breaking Analysis we follow up last week\u2019s research by connecting the dots on the emerging tech stack we see forming from Databricks. With an emphasis on how the company is approaching generative AI, unification and governance\u2026and what it means for customers. To do so we tap the knowledge of three experts who attended the event, CUBE analysts Rob Strechay and George Gilbert and AI market maven Andy Thurai of Constellation Research.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 186 \u2013 Connecting the Dots on Snowflake\u2019s Data Cloud Ambitions <\/strong>\u00a0\u2013<\/strong> Over the past several months we\u2019ve produced a number of in-depth analyses laying out our mental model for the future of data platforms. There are two core themes: 1) Data from people, places, things, and activities in the real world drives applications, not people typing into a UI; and 2) Informing and automating decisions means all data must be accessible. That drives a change from data locked in application silos to application logic being embedded in a platform that manages an end-to-end representation of an enterprise in its data. <\/span><\/p>\n This week\u2019s Snowflake Summit further confirmed our expectations with a strong top line message of \u201cAll Data \/ All Workloads\u201d and a technical foundation that supports an expanded number of ways to access data. Squinting through the messaging and firehose of product announcements, we believe Snowflake\u2019s core differentiation is its emerging ability to be a complete platform for data applications. Just about all competitors either analyze data or manage data. But no one vendor truly does both. To be precise, managing data doesn\u2019t mean running pipelines or serving analytic queries or AI\/ML models. It means managing operational data so that analytics can inform or automate operational activities captured in transactions. With data as the application foundation, the platform needs robust governance.<\/p>\n In this week\u2019s Breaking Analysis, we try to connect the dots between Snowflake\u2019s high level messaging and its technical foundation to better understand the core value it brings to customers and partners. As well, we\u2019ll explore the ETR data with some initial input from the Databricks Data + AI Summit to assess the position and prospects of these two leaders along with the key public cloud players.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 185 \u2013 HPE wants to turn supercomputing leadership into gen AI profits <\/strong>\u00a0\u2013<\/strong> HPE\u2019s announcement of an AI cloud for large language models highlights a differentiated strategy that the company hopes will lead to sustained momentum in its high performance computing business. While we think HPE has some distinct advantages with respect to its supercomputing IP, the public cloud players have a substantial lead in AI with a point of view that generative AI is fully dependent on the cloud and its massive compute capabilities. The question is can HPE bring unique capabilities and a focus to the table that will yield competitive advantage and ultimately, profits in the space?<\/span><\/p>\n In this Breaking Analysis we unpack HPE\u2019s LLM-as-a-service announcements from the company\u2019s recent Discover conference and we\u2019ll try to answer the question: Is HPEs strategy a viable alternative to today\u2019s public and private cloud gen AI deployment models, or is it ultimately destined to be a niche player in the market? To do so we welcome to the program CUBE analyst Rob Strechay and Vice President \/ principal analyst from Constellation Research, Andy Thurai.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 184 \u2013 Uber\u2019s architecture represents the future of data apps\u2026meet its architects <\/strong>\u00a0\u2013<\/strong> Uber has one of the most amazing business models ever created. The company\u2019s mission is underpinned by technology that helps people go anywhere and get anything. The results have been stunning. In just over a decade, Uber has become a firm with more than $30 billion in annual revenue, an annual bookings run rate of $126B and a market capitalization near $90 billion today.<\/span><\/p>\n Moreover, the company\u2019s productivity metrics are 3-5 times greater than what you\u2019d find at a typical technology company when, for example, measured by revenue per employee. In our view, Uber\u2019s technology stack represents the future of enterprise data apps where organizations will essentially create real time digital twins of their businesses and in doing so, deliver enormous customer value.<\/p>\n In this Breaking Analysis, we introduce you to one of the architects behind Uber\u2019s groundbreaking fulfillment platform. We\u2019ll explore their objectives, the challenges they had to overcome, how Uber has done it and why we believe their platform is a harbinger for the future.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 183 \u2013 Snowflake Summit will reveal the future of data apps\u2026here\u2019s our take <\/strong>\u00a0\u2013<\/strong> Our research and analysis points to a new modern data stack that is emerging where apps will be built from a coherent set of data elements that can be composed at scale. Demand for these apps will come from organizations that wish to create a digital twin of their business to represent people, places, things, and the activities that connect them, to drive new levels of productivity and monetization. Further, we expect Snowflake, at its upcoming conference, will expose its vision to be the best platform on which to develop this new breed of data apps. In our view, Snowflake is significantly ahead of the pack but faces key decision points along the way to its future to protect this lead.<\/span><\/p>\n In this Breaking Analysis and ahead of Snowflake Summit later this month, we lay out a likely path for Snowflake to execute on this vision; and we address the milestones and challenges of getting there. As always, we\u2019ll look at what the ETR data tells us about the current state of the market. To do all this we welcome back CUBE contributor, George Gilbert.<\/p>\n Watch the full video analysis.<\/a><\/p>\n Episode 182 \u2013 Cisco needs to simplify\u2026Here\u2019s how <\/strong>\u00a0\u2013<\/strong> With a nearly $60B revenue run rate, growing at 14% and throwing off over $5B in operating cash last quarter, Cisco has an awesome business. But customers are vocal about the complexity of Cisco\u2019s portfolio and if not addressed head on, the company risks encountering friction beyond just economic headwinds. We believe Cisco\u2019s challenges are most decidedly not product breadth and depth, rather the company\u2019s mandate is to integrate the piece parts of its intricate offerings to create more facile and seamless experiences for customers. <\/span><\/p>\n In this Breaking Analysis and ahead of Cisco Live US, we dig deeper into Cisco\u2019s business and double click on three key areas of its portfolio including: 1) Security; 2) Networking; and 3) Observability. With spending data from ETR and a guest appearance from SiliconANGLE contributor and market watcher Zeus Kerravala, principal at ZK Research.<\/p>\n