Comments on: Sweetened IT Spending Forecast Is Not Precisely A GenAI Boom https://www.nextplatform.com/2024/04/23/sweetened-it-spending-forecast-is-not-precisely-a-genai-boom/ In-depth coverage of high-end computing at large enterprises, supercomputing centers, hyperscale data centers, and public clouds. Thu, 02 May 2024 15:49:01 +0000 hourly 1 https://wordpress.org/?v=6.5.5 By: Slim Jim https://www.nextplatform.com/2024/04/23/sweetened-it-spending-forecast-is-not-precisely-a-genai-boom/#comment-223591 Thu, 25 Apr 2024 02:22:34 +0000 https://www.nextplatform.com/?p=144034#comment-223591 “seeing where this GenAI wave might lead before they jump on it and spend big bucks”

Right on! Plus there’s been availability issues for the top gear (mostly for training?) which likely reduced the amount of on-prem experimentation that might otherwise have occurred, that may consequently have been somewhat reduced in scale, or temporarily moved to the cloud. And there’s no denying that AI is in a state of multidimensional flux with its ground floor constantly shifting with novel model shrinkage strategies (eg. Llama 3, Phi3) leading to CPU and edge devices being increasingly suitable to running (at least) inference ( https://www.nextplatform.com/2023/04/05/why-ai-inference-will-remain-largely-on-the-cpu/ ) — at very low cost.

The dot-com boom promised (and delivered) a tangible expansion in addressable consumer base. AI’s benefits may not be as easily identifiable (or substantial) as DLRMs may provide some sales uplift, and benefits related to “labor cuts” could turn out to be a double-edged sword. The tech-boom similarities might not necessarily be perceived as translating into similar enhancements to enterprise revenue streams — beyond kit manufacturers (I guess).

]]> By: Michael Alan Bruzzone https://www.nextplatform.com/2024/04/23/sweetened-it-spending-forecast-is-not-precisely-a-genai-boom/#comment-223579 Wed, 24 Apr 2024 19:48:32 +0000 https://www.nextplatform.com/?p=144034#comment-223579 TPM notes, “Here is a paradox: Spending on infrastructure to support generative AI is apparently booming, as clearly evidenced by the skyrocketing revenues and profits of Nvidia. But spending on datacenter hardware is not changing all that much. IT spending coming out of Gartner, and reviewing the stats that the company gave out in a webinar aptly titled, IT Spending Forecast, 1Q24 Update: GenAI – Where is All the Money? That is what we have been asking for more than a year, and the answer is obvious: “Nvidia has it all. But seriously, our sense of this, based on data out of both IDC and Gartner for the past year on server and storage spending, is that aside from the Internet behemoths, IT organizations have been deferring spending on more generic IT infrastructure to come up with the dough to invest in GenAI?”

And the answer is the analyst revenue watchers are missing the volume market. In the last eight weeks Xeon Skylake secondary sales exceed all of AMD Epyc from Bergamo and Genoa and Sienna, Milan and Rome back to Naples, plus all Threadripper generations. Plus all Intel Emerald and Sapphire Rapids, Ice Lake, Cascade Lakes channel inventory available today. Xeon Sky Lake sales in the last eight weeks equals more than all subsequent AMD and Intel generations available for sale which is also equivalent to all Broadwell v4 available today.

Perhaps IDC and Gartner are watching the secondary market instead of the primary market?

Mike Bruzzone, Camp Marketing

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