| | | Apple, Tesla to Lead ‘Edge’ Computing, Says Guggenheim
The era of the “fat” cloud and the thin smartphone is yielding to one of fatter phones and “edge” computing, so writes Robert Cihra of Guggenheim today in a 58-page think piece.
That has implications for companies such as Apple ( AAPL), Tesla ( TSLA), and Western Digital ( WDC), among others.
Driven by the rise of artificial intelligence, the fat clouds of Amazon ( AMZN) AWS, Microsoft ( MSFT) Azure, and Alphabet’s ( GOOGL) Google Cloud have been leading the development of machine learning. That’s all serving existing thin smartphones, observes Cihra.
In fact, we’re in the cloud-phone era of AWS plus iPhone, he writes:
We believe the two most important developments in tech over the past decade were Apple’s launch of the iPhone in 2007 and Amazon’s launch of AWS a year earlier in 2006, which have headlined a THIN CLIENT + FAT CLOUD computing model where billions of mobile devices rely on the cloud for data, processing, storage and increasingly now machine learning (ML) for artificial intelligence (AI).
But, driven by a need for lower latency and more local processing, edge computing is poised to come in a big way, he writes:
But we think EDGE COMPUTING looks like the incremental growth opportunity, increasingly necessary to overcome cloud overhead in latency and bandwidth, to enable billions of new IoT end-points and real-time LOCAL AI/ML for autonomous systems. As applications push processing back out to the edge, we see devices bifurcating into either Cloud Conduits or Edge Computers that will require much more local horsepower.
Read More – Barron’s
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