Breaking Analysis with Dave Vellante

It’s estimated that firms on average have between 60 and 75 security tools installed. Although leading vendors logically market the benefits of addressing tools sprawl and complexity through consolidation, the data suggests that more than half the firms are increasing the number of security vendors installed, with a very small percentage able to effect vendor consolidation.Adding to the challenge is an environment where security operations pros have too many priorities to manage, including identity, vulnerability management, patching, endpoint, security and information event management, antivirus, zero trust, cloud security and more. Finally, firms are investing in artificial intelligence to relieve the crushing labor burden security analysts are facing but are being forced to balance innovation with the daily battle.In this Breaking Analysis, we preview RSA Conference 2024 with our colleague Erik Bradley of Enterprise Technology Research. We’ll provide a detailed analysis of a recent survey conducted by ETR, perfectly timed ahead of RSA.

The podcast delves into the growing AI battles amongst tech giants like Google, Taiwan's semiconductor expansion, and Samsung's chip funding. It explores the shift in enterprise tech spending post the AI awakening, emergence of competition from OpenAI, Meta as llama, and anthropic, and the rise of AI projects impacting tech sector spending. The evolution of tech spending patterns in the AI sector, challenges faced by IBM and Oracle, and the dominance of AI in tech spending surveys are also discussed.

Technology leaders are reallocating funds for AI initiatives amid tight budgets, exploring shifting sentiments around IT spending. Companies investing in AI face challenges in driving measurable results and funding future projects. Comparing cost efficiency of on-premises vs cloud AI workloads using Dell-powered GPU servers. Current trends in AI investments highlight opportunities in consumer applications and enterprise use cases. Navigating the landscape of AI in business towards distributed applications and driving competitive advantage.

The podcast explores the transformative impact of AI showcased at the NVIDIA GTC event and Broadcom's Investor Day, highlighting the key players in the AI market. It discusses advancements in custom AI silicon, infrastructure, and the strategies of Broadcom and Nvidia in dominating their respective markets for the AI wave.

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?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’s 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.

Exploring the cybersecurity sector's recent dynamics, focusing on CrowdStrike's impressive momentum and growth prospects. Comparisons with Palo Alto's challenges, Zscaler's negativity, and the platform vs. product strategy. Delving into CrowdStrike's diversification and $10B ARR goal, their innovative AI-driven cybersecurity solutions, and the importance of investing in robust security measures.

Broadcom is perhaps the most unique company in the technology business. It doesn’t 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.In this Breaking Analysis we extract key nuggets from our sit down at MWC this week with Charlie Kawwas, president of Broadcom’s Semiconductor Solutions Group, and we unpack the contrarian business technology model of Broadcom.