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5 Companies That Came To Win This Week – CRN: Technology news for channel partners and solution providers

The Week Ending Feb. 7

Topping this weeks list of companies that came to win is Intel, which is preparing to launch a significant upgrade of its Cascade Lake Xeon Scalable server processors.

Also making the "Came to Win" list are AMD, whose laptop CPU sales got a boost in late 2019 from Intels CPU shortage; Dell Technologies for debuting significant enhancements and additions to its partner program; Oracle for firing up five new data centers as part of its effort to be a major IaaS provider; and cloud cybersecurity provider Netskope for raising an impressive $340 million in new financing.

Not everyone in the IT industry was making smart moves this week, of course. For a rundown of companies that were unfortunate, unsuccessful or just didn't make good decisions, check out this week's Five Companies That Had A Rough Week roundup.

Intel Set To Unleash Cascade Lake Refresh To Counter AMD EPYC

Intel is set to refresh its second-generation Xeon Scalable server processors in a bid to put pressure on rival AMDs EPYC multicore processor blitz a move that could alleviate the ongoing Xeon processor shortage.

The 18 new processors, code-named Cascade Lake Refresh, will provide partners with additional cores, higher clock frequencies and higher cache within the mainstream and value segments of the Xeon Scalable lineup, according to a CRN story that cited information from three industry sources with knowledge of Intels plans.

The Cascade Lake Refresh processors are seen as Intels bid to fight back with higher core counts against the AMD EPYC Rome processors that debuted last year.

The new processors could also help improve Xeon supply constraints that have been felt around the channel.

Intel is expected to announce the new processors on Feb. 23.

AMD Laptop CPUs Get Q4 Sales Boost Due To Intel Shortage: Researcher

While the ongoing shortage of Intel CPUs were a problem for many, it was a gain for AMD in that it boosted sales of the companys laptop processors during the 2019 holiday season, especially in the low end of the market.

That was the conclusion of Mercury Research, an Arizona-based firm that tracks processor shipments. The company reported that AMDs laptop processor unit market share grew four points to 16.2 percent in the fourth quarter compared to one year earlier.

The researcher concluded that Intels shortage of low-end processors was one of the main reasons for AMDs gain.

The researcher also said that AMD gained market share in desktop and server processors in the quarter. But it was in the laptop market where AMD made its biggest gain.

Dell Technologies Offers New Incentives, Tools And Rebates In Partner Program Upgrade

Dell Technologies is looking for growth from its channel partners in its just-begun fiscal 2021 and this week the company rolled out a number of partner program enhancements all in keeping with the vendors channel goals of simple, predictable and profitable to help make that happen.

Topping the list of offerings is the new Integrated Quoting Platform that the company said will drive much more predictability in pricing for partners with deal registration, providing the best online price for servers, storage and networking products.

Dell also offered new target customers for server sales through its Partner Preferred Program, improvements to the Cloud Service Provider Program, a consolidated product rebate structure, elimination of the quarterly target process and point-of-sales reporting requirements, simplified training requirements, and reduced tier revenue requirements for partners that operate in smaller markets.

Dell is also expanding program benefits for sell-out compensation to include deals with authorized cloud services partners, a move that should increase sales-channel cooperation by compensating core sales reps on deals involving authorized partners. And the company is streamlining its sales operations by combining its enterprise and commercial sales organizations into one entity.

Oracle Brings Five Data Centers Online As Part Of Ambitious Global Cloud Expansion

Oracles efforts to be a major player in the Infrastructure-as-a-Service arena took a significant leap forward this week when it went live with five new data centers around the world. The facilities are aimed at delivering redundancy within countries to satisfy the disaster recovery demands of enterprises hosting mission-critical workloads.

The new data centers are located in Jeddah, Saudi Arabia; Osaka, Japan; Melbourne, Australia; Montreal, Canada; and Amsterdam in the Netherlands. The data centers represent Oracles latest step in building out what it calls its Gen 2 infrastructure with geographic redundancy a differentiating strategy.

Oracle is looking to break into the leader board of IaaS providers, competing against the likes of Amazon Web Services, Google, Microsoft and Facebook.

Cloud Security Firm Netskope Raises $340 Million

The IT security industry took notice this week when Netskope, a provider of cloud-delivered cybersecurity and cloud access security broker services, raised a stunning $340 million in new financing.

The Series G round of funding, led by Sequoia Capital Global Equities, puts the companys valuation at nearly $3 billion. The funding makes Netskope one of the most valuable venture-funded, pure-play cybersecurity vendors in the industry.

Netskope will use the new financing to maintain its growth trajectory. The Santa Clara, Calif.-based company said it grew its customer base by 80 percent in the last year and now serves 25 percent of the Fortune 100.

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Azubuike named Kareem Abdul-Jabaar Center of the Year Award finalist – Salina Post

Image courtesy kuathletics.com

SPRINGFIELD, Mass. Kansas senior Udoka Azubuike has been named one of 10 finalists for the 2020 Kareem Abdul-Jabaar Center of the Year Award, the Naismith Memorial Basketball Hall of Fame announced Friday.

On most every national player of the year watch lists, Azubuike leads the NCAA in field goal percentage at 76.3 percent. The Delta, Nigeria, center also leads the Big 12 in rebounding (9.5) and is second in blocked shots (2.5) and double-doubles (9). Azubuike has been a force in Big 12 play averaging 11.6 points, 10.3 rebounds and 3.2 blocks against league foes with four double-doubles. He is the only player in the Big 12 averaging a double-double in conference play. He was named the Big 12 Player of the Week on Jan. 27 and averages 12.6 points overall.

As a sophomore in leading Kansas to the 2018 Final Four, Azubuike led the nation with a 77.0 field goal percentage, which set the KU and Big 12 single-season records and ranks second-best for a season in NCAA history. He averaged 13.0 points and 7.0 rebounds in 2017-18 while being named an All-Big 12 Third Team selection.

Azubuike is on pace to break the Kansas, Big 12 and NCAA career field goal percentage records. He has a 75.0 field goal percentage in his three-plus seasons at KU with the school record being set by Mark Randall (1987, 1989-91) who made 62.0 percent. The Big 12 mark is 63.5 percent set by Ricardo Ratliffe of Missouri from 2010-12. The NCAA record is 74.0 percent by Tacko Fall of UCF (2016-19).

New to the award this season is Fan Voting presented by Dell Technologies in each of the three rounds. In March, five finalists will be presented to Mr. Abdul-Jabaar and the Hall of Fames selection committee.The winner of the 2020 Kareem Abdul-Jabaar Award will be presented at The College Basketball Awards presented by Wendys in Los Angeles on April 10, 2020, along with the other four members of the Mens Starting Five.

2020 Kareem Abdul-Jabbar Center of the Year Award Candidates*

Vernon Carey Jr., Duke

Omer Yurtseven, Georgetown

Filip Petrusev, Gonzaga

Luka Garza, Iowa

Udoka Azubuike, Kansas

Daniel Oturu, Minnesota

Kaleb Wesson, Ohio State

Onyeka Okongwu, USC

Isaiah Stewart, Washington

Nathan Knight, William and Mary

*Players can play their way onto and off of the list at any point in the 2019-20 season.

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Bitcoin vs. Altcoins: Which Will Make You More Money in 2020? – Bitcoinist

Now that market sentiment has changed and traders are feeling bullish, comes the age old question, Bitcoin or Altcoins? Lets take a look at which investment strategy may have the bigger payoff.

The bullish sentiment is back, and traders have been placing their allocations on their favorite blockchain projects. The question on most investors minds is which coin will have the biggest payoff? Is it Bitcoin, the largest coin by market cap, or smaller cap Altcoins?

Bitcoin is the most decentralized project, with the most users, and the best minds in computer science currently working on advancing the networks development. It has the largest network effect, the most supporting infrastructure built out around it, and the best trade-offs for self sovereignty. Perhaps most importantly for traders, Bitcoin also has the most liquidity, and is the most secure network, with the highest amount of POW hash rate to validate transactions.

Altcoins on the other hand are usually a lot more volatile and risky. They are not as secure, dont have as much liquidity, and can often be attacked since they have a lower hash rate, or they are less secure consensus-wise like many PoS coins. Some altcoins have competent devs, others do not. Each altcoin should be looked at on a case by case basis and intimately studied by investors, before they go long.

Large cap altcoins like Bitcoin Cash or Ethereum do have a fair amount of infrastructure complementing the networks. For example DeFi is almost at a billion dollars investment on ETH. That being said, each of these projects built on top of an altcoin platform needs to be scrutinized individually, as there are usually tradeoffs.

Many altcoin traders like the added volatility of small cap altcoins because they offer a much larger profit if they do start to moon. Most altcoins rise when Bitcoin rises, sometimes by a lot more than BTC itself, but the same holds true if BTC starts to dump also.

During the 2017 bull run some traders became millionaires from a super small altcoin that suddenly received a bunch of interest because of a partnership, or new feature. Regardless, most altcoins lost over 90% of their value during the bear market and some projects died leaving investors holding a bag of worthless tokens.

Bitcoin has fallen in price dramatically and lost more than 80% of its price several times, but has also gone from $0.06 to its all-time high of $19,891, gains of 33,151,566.66%. It is very volatile, but due to its limited supply, and consensus rules, a very secure investment, with almost unlimited upside potential.

Altcoins should be viewed more as penny stocks. You may be able to pick out the next Google, Amazon or Tesla, but it isnt very likely. Its more likely to be dumb luck. Each Altcoin is very different from every other, and also very different from Bitcoin.

If you plan to invest in Alts, please do your own research and be aware that disingenuous marketing sensationalizes almost every altcoin project. Altcoins, and the companies behind the projects are also vulnerable to regulation, Bitcoin is not.

Bitcoin is the far better investment for 2020. Not only is it seen as a safe haven asset, but its also the original cryptocurrency and continually leads blockchain development through its BIP process. Altcoins can make you more money than Bitcoin, its true, its just a lot riskier, and you could lose everything in an instant.

Altcoins or Bitcoin, where will you put your money this year? Add your thoughts below!

Images via Shutterstock

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Three Crypto Assets Surged More Than 175%, Beating Bitcoin, As Altcoin Market Exploded in January – The Daily Hodl

January was a stellar month for most crypto assets. The total market cap of the overall crypto market jumped 35%, from $193 billion to $255 billion.

A new report from Binance Research highlights the strength of the altcoin market which excludes Bitcoin throughout the month. It grew from $61 billion to $86 billion, posting gains of over 40%. The increase in the altcoin market cap led to a 3% drop in Bitcoins market dominance, from 68% down to 65%.

Spearheading the altcoin charge were two mid-cap coins Dash (DASH) and ZCoin (XZC). Dash surged by 181% last month while ZCoin was not far behind with a 179% spike. Binance excluded the fifth-largest cryptocurrency, Bitcoin SV (BSV), which does not trade on the exchange and rallied 177% in January.

Bitcoin Cash surged by 85.2%, followed by Litecoin and Cardano. Both coins climbed by 65.1% last month, leading the pack of several other large-cap cryptocurrencies that turned green.

Binance Research is also revealing insight on how its institutional clients played the market throughout the month.

The company says its institutional trading desk saw a high number of buy flows for mid-to-low cap altcoins at the start of the month. That fell off by mid-January as traders began to buy Bitcoin. By the end of the month, Binance says fewer traders sold their altcoin positions, realizing that many altcoins were performing as well as if not better than BTC.

Featured Image: Shutterstock/ymcgraphic

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Three Crypto Assets Surged More Than 175%, Beating Bitcoin, As Altcoin Market Exploded in January - The Daily Hodl

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Bitcoin bull trend approaches 10K as altcoin season is a reality – FXStreet

The last 24 hours have seen the crypto sphere surge strongly on almost all cryptocurrencies and tokens. Bitcoin (+5.89%) is approaching the psychological 10K level again, as its altcoins BCH (+16.7%) and BSV (+14.75%) soar, leading the way up. Also noticeable it Ethereum (+10.65%) jumping over the $200 barrier. But almost all top cryptos move actively.

The Ethereum tokens also move bullishly, with BAT (+7.09%), OMG(+6.66$), HT(+6.1%), ZB(+5.67%), CRO(+4.3%) and LINK (+3.1%) being the best performers of the top capitalized.

The bullishness of the last 24 hours is evident by the 11.62 percent growth in the market capitalization of the crypto sector, which currently is $288.2 billion and is approaching the $300 billion level. The volume traded in the last 24 hours was $56.577 billion, a 41 percent increase. This movement has placed Bitcoin dominance to 65 percent.

The spread of the coronavirus has led to the cancellation or delays of several major crypto events across the planet. Asia is one of the most affected, among which are Hong Kong's Blockchain week 2020, Token 2049, and Binance Blockchain Week Vietnam, which are very well known events with lots of industry leaders participating.

The German Financial Supervisory Authority - BaFin- has released a guide for the new cryptocurrency custody law, This new law will apply to firms outside the German territory but serving German citizens. Under this law, the firms already serving the German market won't be penalized for not having a license, with was effective on Jan 1, but these firms must announce their intent to apply for a license before March 31. Crypto custodian companies not currently serving the German market must apply for a license before starting their operations in the German market.

Bitcoin has had a big day, and its price has made a new high, moving above the previous one at $9,550. Currently, the price is making a consolidation movement, after touching twice the +3SD Bollinger line, which is indicative of the overbought condition.

From the chart, we can see that the price action takes place in an upward channel. The current move shows that BTC still has room for more upsides before hitting the resistance line of the upper channel. The MACD is also in its initial stage of the bullish phase. Therefore, we estimate that Bitcoin will continue up and soon to challenge the 10K psychological level.

Support

Pivot Point

Resistance

9,300

9,500

9,830

9,100

10,068

8,970

10,400

Ripple made a sideways action that brought its price to the +1SD line, as we estimated yesterday. Now it is starting to move upwards and is currently trying to overcome the $0.283 level. The price continues moving following the +1SD Bollinger line, and the Bands and averages point upwards. Therefore, the uptrend is evident, and the targets of 0.29 and $0.3 are in hand.

Support

Pivot Point

Resistance

0.2260

0.2740

0.2830

0.2600

0.2900

0.2550

0.3000

Ethereum had a very strong movement yesterday that brought the price from $190 up to $212, piercing the upper trendline of its ascending channel. That shows a solid increase in its bullish momentum. We see also that the price action took place close to the +3SD Bollinger line (amber), and that has also created an overextension of the price. Thus, although it is evident the bullish trend of the Ether, we consider it will experience a consolidation phase for some hours, that move the action closer to the +1SD line.

Support

Pivot Point

Resistance

191.50

200.00

212.00

180.00

221.00

172.00

230.00

Litecoin has finally broken the triangular formation to the upside and moved slightly above the previous top of $73. The price is making a short consolidation near $74. The MACD shows bullishness, and the price moves above the +1SD line, thus the upward movement is ready to resume.

Support

Pivot Point

Resistance

69.00

71.30

74.24

65.50

77.00

64.00

79.00

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Alt Season Cancelled: XRP, Ethereum, and Litecoin All Trigger Sell Signal – newsBTC

Ever since the clock first struck midnight turning into the new year, altcoins like XRP, Ethereum, Litecoin, and many others have been tearing up the price charts and going on massive price rallies.

But those rallies have now triggered a sequence of candlesticks that according to a world-renowned market analyst typically result in a reversal and selloff following.

Towards the start of 2020, the total cumulative altcoin market cap and a number of individual altcoins broke out from downtrend resistance, including large-cap cryptocurrencies like XRP, Ethereum, and Litecoin.

Related Reading | Global Altcoin Breakout Could Usher Return of Alt Season Crypto Riches

The breakout of downtrend resistance caused the largest buy volume on weekly timeframes that the altcoin market has ever seen, and underlying price patterns showed a strong resemblance to early Bitcoin price charts, hinting that life-changing wealth could be ahead for altcoin investors.

But before that happens, anyone who bought the recent altcoin bottom may have to hold through a strong retracement first.

According to the TD Sequential Indicator, created by financial market whiz Thomas DeMark, each of the three aforementioned altcoins XRP, Ethereum, and Litecoin have all reached a 9 sell signal on daily timeframes after a series of positive candle closes.

The sell signals appear on XRP/USD, ETH/USD, and LTC/USD. However, the three major altcoins arent alone in triggering sell signals on daily timeframes.

Cardano and Monero both also triggered TD 9 sell signals on their USD pairs, while Cardano and Litecoin also triggered TD 9 sell signals on their BTC trading pairs as well.

All this week, the ongoing rallies have resulted in a number of crypto analysts reviving talk about an upcoming alt season. And while it cannot be ruled out at this point, alt season may be canceled or at the very least postponed until after a retracement occurs.

Even a fall from current levels would likely be extremely bullish, so long as former resistance confirms as support and holds strong.

A confirmation of resistance turned support would likely lead to even more confidence in bullish crypto investors, and could put the final nail in the bear market coffin.

Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun

After two full years of a long, arduous bear market, numerous bullish factors suggest that the crypto market is ready for a new bull run.

Altcoins like XRP, Ethereum, and Litecoin are all down significantly from their all-time highs, but all it will take is a short-lived alt season during the next bull market, and many of them will reclaim much lost ground.

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Bitcoin Falls Back While Stocks and Altcoins Surge Ahead – Live Bitcoin News

Today is something of a mixed day for cryptocurrencies. Bitcoin the worlds leading cryptocurrency by market cap has ultimately taken a few steps back and is now trading in the $9,100 range, when just yesterday it was circling around $9,200.

Prior, it was trading at an even $9,400, so it appears some of the bullish marks that have been hitting the currency as of late are beginning to take a rest.

Bitcoin was potentially on a path to shutter past its previous level of resistance, which stands at $9,500. This level was hard to breach for the coin (again), which arguably resulted in the fallback for the worlds top cryptocurrency.

In addition, global indicators suggest that bitcoin is in danger of being oversold. The last time we saw this was during the midway point of last month, and the currency was experiencing a slight dip then as well, so this recent fall of a few hundred dollars seems to make sense.

The currencys price also seems to have correlated with fears surrounding Chinas new coronavirus, a deadly disease that has thus far, taken the lives of more than 400 people. Nigel Green chief executive officer of deVere Group explained:

The ongoing upward trajectory of the price of bitcoin correlates to the spread of the coronavirus. Bitcoins price is likely to continue to rise until the coronavirus peaks.

Well, it looks like that fear is starting to subside. News has arrived that the stock market has seemingly jumped more than 400 points over the past few hours given that the scare and hype surrounding the virus have begun to shrink down. Whenever stocks do well, it looks like bitcoin tends to do poorly and vice versa. Thus, now it looks like BTC is taking a short break while stocks get their day in the spotlight.

Chinas stock market has also opened for business again for the first time since the Lunar New Year. Prior, stocks had plunged nearly ten percent and the yuan Chinas national fiat currency was in a serious rut when compared to entities like the U.S. dollar. Now that China is getting back on track, perhaps bitcoin is considered not as necessary.

Other currencies, however, such as Tezos (XTZ) are surging at the time of writing. Despite being a smaller altcoin and occupying only the 15th-largest spot on the crypto industrys list of the top 20 digital assets, the currency appears to have spiked by as much as 400 percent over just the last year alone.

Last February, the asset was trading at a mere 40 cents per unit. Now, the currency has jumped past the two-dollar mark. Thus, BTC is suffering marginally while its tinier altcoin cousins appear to be heading for the stars.

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MIT Spider and Off-Chain Payments – Blockchain Technology – Altcoin Buzz

Say goodbye to crypto off-chain payment congestion as MIT unveils a new crypto routing system.

According to the MIT CSAIL report, the Spider solution will help solve the major issue of congestion caused by ineffective routing systems. Spider simply put, is a new cryptocurrency routing system. Its designed by MIT researchers, including MIT graduate Vibhaalakshmi Sivaraman.

Effectively, Spider provides a more efficient payment route or Payment Channel Network (PCN). PCN transactions, unlike other crypto transactions, do not take place on the blockchain. These types of transactions are also called layer-two scaling solutions. They effectively evade blockchain and its shortcomings while still making use of its open-source, public ledger.

That said, only the opening and closing of the accounts end up on the chain. And PCNs are also considered as good accounts for remittances. Since the system only registersopening and closing records, remittance payments are faster in comparison with blockchain payments.

Confirmation of BTC payments, for example, takes about 11 minutes, whereas for Lightning it takes just a few seconds for confirmation to take place. Processing payment four times faster than any other method available today.

Thanks to MIT Spider, a major roadblock in the global adoption of cryptocurrency has finally been overcome.

According to the CSAIL report, Spider makes use of a dividing strategy. Simply put, it splits transactions into smaller batches across several channels. This method helps to reroute big payments, spreading it to a low funding level as well. This helps to evenly distribute transactions across both high funding levels and low funding levels.

Speaking on the scheme, Vibhaalakshmi pointed out that packet switching a major way to transfer data over the web was the driving force behind MIT Spider.

According to Computer World, MIT Spider uses fewer funds to complete a transaction. About 74% less than other conventional payment processors. Spider payment routes are also congestion-free. The network, instead of deleting transactions, queues them.

Facilitating cross-border payments is one of the main functions of cryptocurrency today. With the US Mexico route one of the biggest in the world.

Previously Altcoin Buzz covered how Dash plans to improve crypto adoption in Latin America via crypto remittance.

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Bitcoins Dominance is at a Critical Level That Could Determine the Fate of Altcoins – Ethereum World News

Bitcoin has been incurring steady upwards momentum since the start of 2020, which has in turn allowed most major altcoins to similarly post notable gains.

It is important to note that although many altcoins have been able to post notable gains over the past several days and weeks, Bitcoin still has significant dominance over the aggregated market, suggesting that it will have to cede some of this control in order for altcoins to incur any notable upside in 2020.

BTCs dominance does, however, appear to be at a critical level, and which direction it goes next could provide insight into where the altcoin market in general is heading next.

At the time of writing, Bitcoins dominance over the aggregated cryptocurrency market is at just under 66%, which is down slightly from its early-January highs of 69%.

It is important to note that although BTCs market dominance has been stagnating throughout 2020, it is up significantly from its 2019 lows of under 50%.

This explains why Bitcoin was able to post nearly 100% gains throughout the course of 2019, while many major altcoins saw incredibly mixed performance, with XRP and XLM both dropping over 40%.

In order for altcoins to outpace Bitcoin and see massive parabolic climbs throughout the coming year, it will likely require BTC to see a decline in dominance that stems from investors moving capital away from the benchmark crypto and into smaller altcoins.

Big Chonis, a popular crypto analyst on Twitter, spoke about Bitcoins market dominance in a recent tweet, telling his followers that he is watching a few key Fibonacci levels for insight into where altcoins will head next.

BTC (dominance) has regained half off the dominance lost from the lows of 2018, a future test of the 38.2 first and #alts would have continued their bullish rises. A golden pocket test first and #alts would have broke bearishly probably along with #bitcoin as well, he noted while referencing the chart seen below.

If BTC does test the 38.2 retracement level he references above, it may be a sign that investors are fleeing Bitcoin in favor of its smaller counterparts, thus kicking off the next altseason.

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Cloud Capex Is Growing Again – But the Spending Is Now More Efficient – TheStreet

Three months after signs began emerging that capital spending by cloud giants on hardware and chips is poised to improve following an early-2019 slowdown, this earnings season has yielded a lot of evidence that such spending is now rebounding meaningfully.

At the same time, comments from Intel(INTC) - Get Reportand Amazon.com(AMZN) - Get Reportgive reasons to think that the current cloud capex surge wont be as massive on a percentage basis as the one seen in 2017 and 2018.

Heres a run-down of what a few Internet/cloud giants (the proverbial hyperscalers) have shared over the last two weeks about their near-term capex plans.

In addition, Intel reported that its Data Center Group (DCG), which covers sales of server CPUs and certain complementary products, saw its sales to cloud service providers grow 48% annually in Q4, after growing a modest 3% in Q3 and dropping 1% in Q2. Intel also forecast that strong cloud demand would lead its data-centric businesses (a term used to collectively describe DCG and several other units) to grow more than 25% annually in Q1.

Some other chip and component suppliers, such as memory giants Samsung and SK Hynix and hard drive and flash memory giant Western Digital(WDC) - Get Report, have also signaled this earnings season that sales to cloud clients are on the upswing. On its call, Western indicated that it expects cloud demand to remain strong through the first half of 2020.

However, while Intel forecast it would see strong cloud demand this quarter, the company also said that it expects more modest cloud capacity expansion during the rest of 2020, as cloud providers move to a digestion phase. That suggests the current cloud capex up-cycle will be briefer than the last one -- even if some suppliers see demand remaining strong beyond Q1.

The fact that the hyperscalers (aided by their top-notch engineering talent) have steadily become more efficient when it comes to the use of their data center resources appears to be helping them keep their data center capex from growing too quickly.

Here, Amazons Q4 earnings call comments are noteworthy. On the call, CFO Brian Olsavsky said that Amazon now plans to depreciate the value of capital investments in servers over four years, rather than three as it has historically done. He added that Amazon has found that the useful life of its servers is now exceeding four years, thanks to the work it has put in to make its servers last longer.

We've been operating at scale for over 13 years in this business and continue to refine our software to run more efficiently on [our] hardware, Olsavsky said. [This] lowers stress and extends the useful life both [for] servers that we use in the AWS business and also the servers that we use to support our own Amazon businesses, he said.

Microsoft has also mentioned at times that its seeing efficiency gains for its data center capex. And Google and Facebook arent exactly slouches in this department either.

The fact that the hyperscalers are spending more efficiently doesnt mean that their capex is going to be declining over the long run. The computing, storage and networking needs of many web and cloud workloads -- everything from cloud infrastructure and online video services, to AI training systems and AI-powered voice assistants, to search and news feed algorithms -- look poised to continue seeing healthy growth in the coming years.

Moreover, unlike telcos that are nervous about spending more on capex because theyre struggling to see revenue growth, the hyperscalers are still growing revenue at healthy double-digit annual clips and (both when it comes to data centers and other investment areas) have collectively shown a willingness to sacrifice near-term profits in the name of pursuing long-term bets.

But with that said, investors in companies supplying chips or hardware to the hyperscalers should keep in mind that these companies are proving to be much more efficient at using their hardware than the typical Global 2000 enterprise. This could result in cloud capex simply growing at a decent clip over the long run, rather than the sky-high rates seen for a while in 2017 and 2018.

Alphabet, Amazon, Microsoft and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club.

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Cloud Capex Is Growing Again - But the Spending Is Now More Efficient - TheStreet

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