Breaking Analysis with Dave Vellante

Tech spending is poised to rebound as the economy re-opens in 2021. CIOs and IT buyers expect a 4% increase in 2021 spending and we believe the number will actually be higher-- in the 6-7% range. Drivers are: continued fine-tuning of and investment in digital strategies-- e.g. cloud, security, AI, data, and automation. Application modernization initiatives continue to attract attention. We also expect more support with work from home demand - e.g. laptops. We’re even seeing pent up demand for data center infrastructure. The major risk to this scenario remains the pace of reopening. However even if there are speed bumps to the vaccine rollout and herd immunity, we believe tech spending will grow at least 2 points faster than GDP, currently forecast at 4.1 percent.

The next 10 years of cloud will differ dramatically from the past decade. The future will bring a much more data-centric, real time, intelligent, hyper-decentralized cloud that will comprise on-prem, hybrid, cross-cloud & edge workloads. With a services layer that abstracts the complexity of the underlying infrastructure.This was a key takeaway of the guests from theCUBE on cloud, a virtual event hosted by SiliconANGLE and theCUBE, which brought together CEOs, CIOs, data practitioners, technologists, cloud experts, analysts and opinion leaders to unpack the future of cloud computing.

When it comes to silicon manufacturing, volume is king. The core issue Intel faces is it has lost the volume game, forever. Incoming CEO Pat Gelsinger faces seemingly difficult decisions. On the one hand, he could take some logical steps to shore up the company’s execution, outsource a portion of its manufacturing & make incremental changes. On the other hand, Gelsinger could make much more dramatic moves, shed its vertically integrated heritage & transform Intel into a leading designer of chips for emerging multi-trillion dollar markets.We believe that Intel actually has no choice. It must create a deep partnership (e.g. JV) with a manufacturer that covets a bigger presence on U.S. soil, outsource production & focus Intel’s resources on design.

In our 2020 predictions post, we said that organizations would slow down experimentation & begin to operationalize digital transformation PoCs this year. We also said that security companies like CrowdStrike and Okta, Inc. were poised to rise above the rest along w/ accelerated cloud migrations. And we predicted the S&P 500 would surpass 3700 in 2020!https://www.linkedin.com/feed/update/urn:li:activity:6749707102035472385/

New data suggests that tech spending will be higher than we previously thought for 2021. COVID learnings, a faster than expected vaccine rollout, productivity gains & gain-sharing; along with broad-based cloud adoption, lead us to raise our outlook for next year. We now expect a 3-5% increase in 2021 technology spending, roughly double our previously forecasted growth rate.

The storage business as we know it has changed forever. On premises, external storage was once a virtually unlimited and untapped bastion of innovation, VC funding and lucrative exits. Today it is a shadow of its former self and the glory days of storage in the data center will not return.https://lnkd.in/daYA9A5

2020 has acted as a hasty but effective proof of concept for how to digitally transform businesses. CIOs report that generally, technology spending levels have either rebounded or will do so in the near future, setting up what could be a stronger 2021 than we’ve previously reported.https://lnkd.in/d_bhfYA

Cloud computing has been the single most transformative force in IT over the last decade – what will Cloud 2030 look like? As we enter the 2020s, we believe that cloud will become the underpinning of a ubiquitous, intelligent and autonomous resource that will disrupt the operational stacks of virtually every company in all industries.

Remote work has caused CISOs to shift spending priorities toward identity access management, endpoint and cloud security. COVID has been a benefactor to "NextGen" security companies that participate in these sectors. Notably, we believe tactical responses to the coronavirus have resulted in productivity improvements that will create permanent change in the way organizations defend themselves against cyber threats.https://bit.ly/393OP4H

Breaking Analysis: How Snowflake Plans to Fix a Flawed Data ModelSnowflake will not grow into its valuation by simply stealing share from the on-prem data warehouse vendors. Even if it got 100% of the data warehouse business it wouldn’t come close to justifying its market cap. Rather Snowflake must create a new market based on completely changing the way organizations think about monetizing data.