There are four businesses that are very difficult for an equipment manufacturer in the IT sector to make any money on: smartphones, PCs, datacenter servers, and services. …
Here is how you know you are in a tough business: No matter what you do, no matter how hard your people work and how smart they are, no matter that you are riding the wild tiger of AI growth and revenues have grown marvelously, you can’t make any money. …
Spending on AI systems in 2024 just utterly blew by the expectations of the major market researchers and those who dabble in metrics like we do. …
All trends with AI point up and to the right, and usually pretty sharply. …
A pattern seems to be emerging across the original equipment manufacturers, or OEMs, who have been largely waiting on the sidelines to get into the generative AI riches story. …
We have been tracking the financial results for the big players in the datacenter that are public companies for three and a half decades, but starting last year we started dicing and slicing the numbers for the largest IT suppliers for stuff that goes into datacenters so we can give you a better sense what is and what is not happening out there. …
It is hard to keep a model of datacenter infrastructure spending in your head at the same time you want to look at trends in cloud and on-premises spending as well as keep score among the key IT suppliers to figure out who is winning and who is losing. …
If the original equipment manufacturers of the world had software massive software divisions – like many of them tried to do a two decades ago as they tried to emulate IBM and then changed their minds a decade ago when they sold off their software and services businesses and pared down to pushing tin and iron – then maybe they might have been on the front edge of AI software development and maybe they would have been closer to the front of the line for GPU allocations from Nvidia and AMD. …
If you are in the traditional HPC community, it is not hard to be of two minds about the rise of AI and the mainstreaming of generative AI. …
We think that server spending is a leading indicator of economic growth or decline, and we are tracking the public companies that peddle systems to try to get a sense of how they are doing to get a better sense of what enterprises, governments, academic institutions, and other organizations separate from the hyperscalers and cloud builders, the latter of which comprise around half of server shipments and slightly less than half of server spending. …
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