• Telco AI Leader: Data center industry leaders like Vertiv and Equinix are supporting the need for more liquid cooled data center infrastructure to meet demands of rising GPU use.
• Dream Bigger: While today hyperscalers are deploying the technology, private AI will drive demand for liquid cooling in smaller enterprise data centers, with potential for bottlenecks.
Data centers around the world hosting consumer and enterprise applications may see a shift towards using liquid cooling techniques, as opposed to the various forms of air cooling (e.g., room, rowm and rack) that are used for the vast majority of data center workloads today. Liquid cooling instead uses water or a refrigerant to dissipate heat from CPUs and GPUs. The advantage of liquid cooling is the higher thermal efficiency of transferring heat through water as opposed to the air. While liquid cooling is not a new technology, it has been eschewed in favor of air cooling due to the more CapEx-intensive nature of building liquid cooling systems within data halls, and the ability of air conditioning systems to largely keep up with the heat generated by IT workloads, up until this point in time.
• Qatar-based telecoms group Ooredoo and US chipmaker Nvidia signed a deal for Ooredoo to buy and deploy thousands of Nvidia graphic processing units (GPUs).
• Ooredoo will build its AI cloud services platform and offer GPU-as-a-service to customers across its footprint: Qatar, Algeria, Kuwait, Tunisia, Oman, and the Maldives.
In one of the most significant moves made by any telecoms operator in MENA to turbocharge AI capabilities, Ooredoo Group is boosting its 26 data centers by incorporating Nvidia’s high-density GPUs. It is also becoming the region’s first Nvidia Cloud Provider. As a result, Ooredoo will develop an AI – and an ML-ready platform powered by Nvidia’s stack of software and services, including generative AI (GenAI).
• The complexities of implementing generative AI (GenAI) and integrating it with existing systems present a challenge to enterprises; most organizations report that deployments take much longer than originally anticipated.
• Telefónica Tech is wise to expand its AI offerings for business customers and to offer tools focused on data management and governance.
On June 18, 2024, Telefónica Tech announced it was expanding its partnership with IBM to help businesses in Spain adopt artificial intelligence (AI), including GenAI. The companies will offer Shark.X, a platform designed for data management, analytics, and AI. The platform will incorporate key technologies from IBM, including IBM Cloud Pak for Data and IBM watsonx AI and Data. However, the partnership is not limited to hardware and software: The companies will work together to provide training and educational programs as well as to develop use cases and to help customers implement pilot projects.
• With AWS’ first-time attendance, all three cloud giants were present at FinOps X this year.
• The cost of AI will impact FinOps budgets.
No one is “running” in FinOps, said FinOps Foundation executive director J.R. Storment during last week’s June 19-22, 2024 FinOps X keynote speech. Storment described new community project stages as either being in the crawl, walk, or run phase, depending on their technology evolution and adoption rates. The FinOps X conference has only been around since 2022 but is quickly garnering a following, not only of technology and cloud leaders, but also various personas dedicating careers to the emerging space. Workers range from traditional IT operations professionals to non-IT workers coming from accounting and finance backgrounds as part of a reskilling trend happening in this sector. FinOps, short for financial operations, refer to sets of cloud cost management tools. The practice encompasses a relatively new operational framework and initiative being more broadly recognized among enterprises undergoing digital transformations by migrating applications to the cloud and/or creating cloud native apps.
• Telcos can use AI both internally and in customer facing-roles to achieve differentiation.
• There is an opportunity for telcos to help enterprises adopt AI and become AI enablers – both for large enterprises and the SMB market.
“Nobody knows how AI will impact networks!” so said the CEO of one of the world’s largest telecoms technology vendors at a recent industry event. In this statement lies the potential opportunity and the potential challenge for telcos in becoming major players in the AI boom.
• The addition of Juniper’s enterprise business is unlikely to have a serious anticompetitive effect on the robust campus access market, which includes LAN and WLAN networks, as well as the management and policy software that runs them.
• Juniper will make HPE’s data center business more attractive to enterprises, but often the server/storage decision and networking decision is made separately, especially in greenfield situations.
The UK’s Competition and Markets Authority (CMA) has started an investigation into HPE’s plan to acquire Juniper Networks, which is set to complete in late 2024 or early 2025. With a deal size of approximately $14 billion dollars and HPE’s position in the enterprise infrastructure market, it’s not a surprise that the deal is receiving scrutiny by regulators. There has been a spate of acquisitions in the tech sector that have been blocked in the last few years, including Nvidia buying Arm and the CMA also put the acquisition of VMware by Broadcom under considerable scrutiny.
Gary Barton – Analyst, Business Network and IT Services
Summary Bullets:
• Technology complexity and skills shortages are leading more enterprises to look towards managed network and security solutions
• Enterprises should look for flexible, reliable providers who can offer a full range of managed and professional services from day zero to day two
GlobalData’s conversations with enterprises over the last two years have highlighted a growing trend towards managed network services – a trend that is borne out by GlobalData’s Market Opportunity Forecasts. This trend is true even among large and multinational enterprises in the US who have traditionally favored a DIY approach. Enterprises have indicated multiple reasons for this move, primary among which are complexity and skills shortages.
Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services
Summary Bullets:
• In a report to Congress, the Government Accountability Office (GAO) said the cyber threat environment is throwing challenges at public and private sector entities alike that put national security, the economy, the environment, and human safety at risk. As evidence, the GAO cited the fact that federal agencies reported 30,659 cybersecurity incidents to the Department of Homeland Security’s US Computer Emergency Readiness Team in 2022.
• The report urged government agencies to work in tandem with the private sector to ward off threats.
A GAO report to Congress flagged the serious, and in many cases unaddressed, risks that could jeopardize national security. Since 2010, the agency has recommended to other agencies 1,610 steps to close security gaps. The current cyber risk report noted that nearly 600 of these haven’t been acted upon, putting the security of federal systems and critical infrastructure at risk. The GAO blamed a mix of competing budget priorities, communications failures, and the inability of some agencies to accurately measure outcomes.
Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services
Summary Bullets:
• In an opinion piece published in The New York Times, US Surgeon General Dr. Vivek H. Murthy calls for a warning label for social media to educate adolescents and adults about the links between the medium and negative mental health effects.
• Referencing research that ties adolescent depression, poor body image, and harassment to social media consumption, Murthy says that while a warning label will not correct the issues, it would go a long way toward educating the public about the potential for harm associated with sites like Snapchat and Instagram.
Social media companies have long been under fire for using algorithms to manipulate sometimes vulnerable populations into viewing potentially harmful content. By its nature, social media encourages overuse to the point of near-addiction. Research has uncovered links between anxiety and depression in adolescents and social media use. A JAMA Network survey of 6,595 US adolescents finds that spending just 30 minutes on social media leads to an increase in internalizing issues and becoming depressed. The longer the session, the higher the rate of anxiety and depression. The study indicates that teenagers who spend three or more hours daily on social media are at a higher risk for mental health issues.
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