Brian Gracely, a cloud and AI commentator; Aaron Delp, a cloud industry analyst; and Brandon Whichard, a tech news expert, dive into July 2024's cloud and AI happenings. They discuss the chaotic impact of CrowdStrike's outage and legal troubles with Delta Airlines, as well as challenges in chip manufacturing with Intel. The trio also explores the optimism in emerging tech job opportunities, AI's genuine impact versus hype, and strategies for navigating current political and professional uncertainties.
The increasing integration of technology in all businesses, even traditional sectors, highlights a fundamental shift towards viewing companies as software entities.
The CrowdStrike incident exemplifies the growing legal accountability in the tech sector, potentially reshaping risk management practices for IT service providers.
Deep dives
The Ubiquity of Software
The podcast highlights a significant trend where almost every company is now identified as a software company, regardless of its primary business. This shift demonstrates the increasing importance of technology in various sectors, including traditional industries like farming and fencing. An anecdote shared by the host illustrates this point, as a fencing company was described as a technology company, showcasing how every aspect of business is becoming intertwined with software development. This reflects a broader societal change where technology underpins diverse business operations.
Impact of Recent Outages in Tech
A major focus of the discussion revolves around the CrowdStrike outage, which had significant consequences for Delta Air Lines, prompting a lawsuit against the cybersecurity firm. This incident underscores the potential legal ramifications and shifts in accountability within the tech landscape, as companies may face deeper scrutiny following such outages. The conversation suggests that if Delta's claims are validated in court, it could set a precedent affecting all IT service providers and change how companies approach risk management. This situation highlights an evolving environment where the expectations for accountability and transparency in tech are becoming stricter.
Challenges Facing Major Tech Companies
The podcast explores the myriad of challenges confronting major tech players like Intel and AWS. Intel's recent layoffs and struggles to meet deadlines reflect deeper issues within U.S. chip manufacturing and competitive positioning in the global market. Concurrently, AWS is in the midst of a transformation under new leadership, with a renewed focus on streamlining services to remain competitive. Additionally, the discussion touches on broader market trends, such as decreasing software valuations and increasing pressure on companies to deliver consistent profitability amidst fluctuating economic conditions.
Shifting Dynamics in AI and Investment
The discussion reveals a growing skepticism regarding the immediate return on investment in AI technologies, with venture capitalists and tech leaders reevaluating their strategies. Despite the initial hype around AI advancements, there is a noticeable shift as stakeholders seek long-term, sustainable business models rather than quick wins. The potential consolidation in the AI space, characterized by aqua hiring trends, may reshape the landscape as talent is absorbed by larger firms seeking competitive advantages. The hosts reflect on the need for a more nuanced understanding of AI's capabilities and potentials, as expectations align more closely with reality.
Trend 1 - What do you tend to do (at work, or outside work) when things seem overly bad in lots of areas?
Trend 2 - Are people starting to feel like AI is more sizzle (hype) than steak (reality)?
Trend 3 - As you’re looking at 2HCY24 now, with all the things that happened in July, are you expecting anything new/different than you thought a couple months ago?
Trend 4 - Are we likely to be in “wait and see” mode for the rest of the year, with all the political uncertainty?