Barely five months after last year's event, Ignite 2021 was in some ways a timely opportunity for Microsoft to reconnect with customers in the throes of their digital transformation efforts. As the pace of digitization continues to accelerate in businesses, the event offered IT leaders announcements in several areas of interest: Teams collaboration, mixed reality computing, zero-trust security and developer productivity, to name a few.
However, a standout area this year was at the intersection of several of Microsoft's most important strategic domains: hybrid cloud and edge computing, artificial intelligence (AI) and industry clouds. Each of these areas are growing in influence in their own right, but it's becoming more and more important to watch where Microsoft's products cross paths. As the firm continues to strengthen the ties between its enormous flywheel of solutions, it's at these intersections where you can get a good glimpse of Microsoft's strategic direction and longer-term differentiation in the cloud market.
Let's take a closer look at this in the context of Ignite's highlights and what they mean for Microsoft.
The opening keynotes at Ignite 2021 balanced big-picture vision in areas such as cloud computing, mixed reality collaboration and AI at scale, with lauding the resilience of IT professionals and developers over the past year in helping their firms transform at an unprecedented rate.
Noting Microsoft's own, decade-long journey in cloud technologies, CEO Satya Nadella outlined five elements (see images below) that will enable cloud innovation over the next 10 years, driving Microsoft's overall cloud strategy and road map. The company's role, Nadella said, is to help customers build " tech intensity" an ethos driving companies to adopt technology, break down silos, change culture and build up their digital capabilities to enable their own digital transformations.
Related Article: Microsoft's Flywheel Kicks Into Gear at Ignite 2020
The first element, "ubiquitous, decentralized computing," is arguably Microsoft's greatest area of focus right now. This essentially calls out the new era unfolding for more distributed cloud computing, coming off the current "peak centralization" of the cloudand is a reincarnation of theintelligent cloud and intelligent edge concept Microsoft first introduced at Build 2017.
The hybrid cloud, and specifically Azure Arc, has become one of the core vehicles of Microsoft's cloud strategy over the past year and focus of several of the leading announcements at Ignite 2021 as a result. The firm announced the general availability of Azure Arc-enabled Kubernetes, allowing organizations to manage and govern Kubernetes clusters deployed on-premises, in the public cloud or at the network edge.
The flexibility that Arc-enabled Kubernetes provides will be welcome news for customers, especially as the platform matures. In the next few years, we expect over 40% of large firms will continue to run more than 40% of their IT workloads on-premises, with 46% of companies adopting multi-cloud strategies, according to CCS Insight's latest survey data.
Microsoft also announced a major move at the intersection of hybrid cloud and AI. Azure Arc-enabled machine learning allows customers to build machine learning models and run inference where data lives, whether in on-premises data centers, on dedicated AI hardware, in edge environments or in multiple public cloud environments, for example.
Customers are looking for more flexibility in the environments in which they run their machine learning applications, and want the option to use their existing hardware investments. This is where Azure Arc is squarely positioned. According to my firms "Senior Leadership IT Investment Survey, 2020," for example, close to a quarter of organizations said that the ability to support a hybrid IT or on-premises environment was the top consideration for their investment in machine learning, and 55% said they wished to pursue a multi-cloud approach for AI.
With the exception of IBM, which launched Watson Anywhere in 2019, Microsoft leads other players in this trend, giving it a unique window of opportunity against its cloud rivals. Google Cloud has announced a few hybrid AI capabilities this year, such as Speech-to-Text On-Prem, building on the 2020 release of BigQuery Omni, its hybrid, multi-cloud analytics solution. But so far, Google has fallen short within its core platform. Similarly, Amazon Web Services (AWS) has yet to announce compatibility between Amazon SageMaker and AWS Outposts, although I expect it will do so imminently.
Related Article: IBM and Microsoft Sign 'Rome Call for AI Ethics': What Comes Next?
Another big move targeted the intersection of AI, the internet of things and edge computing, strengthening Microsoft's play in industrial settings.
The Azure Percept hardware and services platform aims to solve the challenges of using AI on low-power, connected devices in factories and warehouses, spanning device management, machine learning model development and analytics. Microsoft released two hardware development kits as part of the solution,pre-integrated with Azure IoT Hub for secure deployment and management, as well as with Azure Cognitive Services, Azure Machine Learning and Azure Video Analytics.
The move is part of a bigger push by Microsoft to infuse AI everywhere: in its products, in its research and in its operational practices. Together, these give customers options to forge their own paths with the technology, whether it's a classical big data and machine learning path through enhancements to Azure Machine Learning, a modern AI approach through its large-scale models through Project Turing and its supercomputing resources in Azure, or with edge solutions for industries such as Azure Percept. This flexibility and variety of options is quickly becoming a hallmark of Microsoft's differentiation and strategy in AI.
Above all though, Ignite 2021 also showcased Microsoft's growing commitment to industry verticals. It's here that we see several products meet, spanning several of Microsofts clouds including Azure, Microsoft 365 and Dynamics 365.
In the days before the event, the firm introduced three new industry cloud offerings, adding Microsoft Cloud for Financial Services, Microsoft Cloud for Nonprofit and Microsoft Cloud for Manufacturing to its existing solutions for healthcare and retail. The launch is its response to customers pushing Microsoft harder to integrate and align innovation between its entire portfolio with industry outcomes and data protection standards.
Unlike other industry clouds, Microsoft's approach combines its infrastructure services, software-as-a-service applications for individual sectors, co-development initiatives with industry customers and a partner ecosystem to address specific business processes and industry challenges. Although it's early days in the shift to industry clouds, Microsoft's solution-centric and integrated approach to its cloud offerings will be a big part of how it plans to differentiate against other industry offerings.
CCS Insight has predicted for the past several years that 2021 will be the year of vertical clouds, as cloud providers ramp up activities to make their largely horizontal platforms more relevant to various sectors. In the past 12 months, we've seen IBM launch its Cloud for Financial Services, AWS deepen its capabilities in government, telecommunication and industrial sectors, and Google Cloud announce a focus on several industries for its AI solutions. In my view, Microsoft's announcements in this area leapfrog many of these efforts at this early stage of the game.
Related Article: Choosing a Cloud Provider for Business Innovation
Microsoft's relentless focus on achieving greater synergy and strengthening the connective tissue between its growing portfolio of products is perhaps its greatest strength in the market right now given the improved differentiation, product "stickiness" and customer value this strategy affords it. The area is also becoming an important source of innovation as well, especially at the intersection of some of its most important domains such as hybrid cloud and edge computing, AI and industry clouds as well as other areas including Teams and security, all of which came alive at Ignite 2021.
But as Microsoft continues down the right strategic paths in 2021, a new economic reality faces swathes of companies, putting pressure on IT budgets around the globe. How Microsoft complements this innovation with improvements to its commercial and licensing models to help customers reduce financial risk will be a vital new area on which it must now focus. Areas such as new bundling options across its clouds, more dedicated SMB offerings and above all, as it pursues industry solutions, a deeper focus on outcome-based pricing models should all come into play.
With many businesses across the globe struggling, helping customers find new ways to finance and consume its products will be just as important moving forward as the integration and intersecting areas of its portfolio are to Microsoft's strategy today.
Nicholas McQuire is vice president, enterprise research and artificial intelligence research at CCS Insight. He has over 15 years' experience in enterprise technology advisory services. He leads CCS Insight research in cloud computing, machine learning and the digital workplace.
Follow this link:
Microsoft Innovates at the Intersection of Hybrid Cloud AI and Industries at Ignite 2021 - CMSWire
- Chinese national arrested and charged with stealing AI trade secrets from Google - NPR - March 8th, 2024 [March 8th, 2024]
- President Biden Calls for Ban on AI Voice Impersonations During State of the Union - Variety - March 8th, 2024 [March 8th, 2024]
- Revolutionize Your Business with AWS Generative AI Competency Partners | Amazon Web Services - AWS Blog - March 8th, 2024 [March 8th, 2024]
- Broadcom Expects AI Demand to Help Offset Weakness Elsewhere - Yahoo Finance - March 8th, 2024 [March 8th, 2024]
- Micron Hits Record High With Analysts Calling It an 'Under-Appreciated AI Beneficiary' - Investopedia - March 8th, 2024 [March 8th, 2024]
- The Adams administration quietly hired its first AI czar. Who is he? - City & State New York - March 8th, 2024 [March 8th, 2024]
- AI likely to increase energy use and accelerate climate misinformation report - The Guardian - March 8th, 2024 [March 8th, 2024]
- This Artificial Intelligence (AI) Stock Could Double, and It Is Way Cheaper Than Nvidia - Yahoo Finance - March 8th, 2024 [March 8th, 2024]
- Fake images made to show Trump with Black supporters highlight concerns around AI and elections - The Associated Press - March 8th, 2024 [March 8th, 2024]
- Artificial intelligence and illusions of understanding in scientific research - Nature.com - March 8th, 2024 [March 8th, 2024]
- Analysis | House AI task force leaders take long view on regulating the tools - The Washington Post - March 8th, 2024 [March 8th, 2024]
- Don't Give Your Business Data to AI Companies - Dark Reading - March 8th, 2024 [March 8th, 2024]
- NIST, the lab at the center of Bidens AI safety push, is decaying - The Washington Post - March 8th, 2024 [March 8th, 2024]
- Essay | AI is Coming! Tips for Staying Calm and Carrying On - The Wall Street Journal - March 8th, 2024 [March 8th, 2024]
- AI can be easily used to make fake election photos - report - BBC.com - March 8th, 2024 [March 8th, 2024]
- 5 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire - Yahoo Finance - March 8th, 2024 [March 8th, 2024]
- AI could be an extraordinary force for good. So why do our politicians still not have a plan? - The Guardian - March 8th, 2024 [March 8th, 2024]
- Mapping Disease Trajectories from Birth to Death with AI - Neuroscience News - March 8th, 2024 [March 8th, 2024]
- India plans 10,000-GPU sovereign AI supercomputer - The Register - March 8th, 2024 [March 8th, 2024]
- SAP enhances Datasphere and SAC for AI-driven transformation - CIO - March 8th, 2024 [March 8th, 2024]
- Jim Cramer names companies and sectors poised to rally on the AI wave - CNBC - March 8th, 2024 [March 8th, 2024]
- The job applicants shut out by AI: The interviewer sounded like Siri - The Guardian - March 8th, 2024 [March 8th, 2024]
- Microsoft confirms Surface and Windows AI event for March 21st - The Verge - March 8th, 2024 [March 8th, 2024]
- Adobes new Express app brings Firefly AI tools to iOS and Android - The Verge - March 8th, 2024 [March 8th, 2024]
- A Google AI Watched 30,000 Hours of Video GamesNow It Makes Its Own - Singularity Hub - March 8th, 2024 [March 8th, 2024]
- Palantir CEO Karp on TITAN, AI Warfare Technology - Bloomberg - March 8th, 2024 [March 8th, 2024]
- Elliptic Curve Murmurations Found With AI Take Flight - Quanta Magazine - March 8th, 2024 [March 8th, 2024]
- 5 AI Stocks to Buy in March 2024, According to Analysts - TipRanks.com - TipRanks - March 8th, 2024 [March 8th, 2024]
- Wix's new AI chatbot builds websites in seconds based on prompts - The Verge - March 8th, 2024 [March 8th, 2024]
- Amid record high energy demand, America is running out of electricity - The Washington Post - March 8th, 2024 [March 8th, 2024]
- AI Crypto Tokens in 5 Minutes: What to Know and Where to Start - Inc. - February 26th, 2024 [February 26th, 2024]
- 'The Worlds I See' by AI visionary Fei-Fei Li '99 selected as Princeton Pre-read - Princeton University - February 26th, 2024 [February 26th, 2024]
- AI is having a 1995 moment, analyst says - Business Insider - February 26th, 2024 [February 26th, 2024]
- Vatican research group's book outlines AI's 'brave new world' - National Catholic Reporter - February 26th, 2024 [February 26th, 2024]
- Honor's Magic 6 Pro launches internationally with AI-powered eye tracking on the way - The Verge - February 26th, 2024 [February 26th, 2024]
- Google explains Gemini's embarrassing AI pictures of diverse Nazis - The Verge - February 26th, 2024 [February 26th, 2024]
- Google cut a deal with Reddit for AI training data - The Verge - February 26th, 2024 [February 26th, 2024]
- What's the point of Elon Musk's AI company? - The Verge - February 26th, 2024 [February 26th, 2024]
- AI agents like Rabbit aim to book your vacation and order your Uber - NPR - February 26th, 2024 [February 26th, 2024]
- Announcing Microsofts open automation framework to red team generative AI Systems - Microsoft - February 26th, 2024 [February 26th, 2024]
- After Nvidia's latest blowout, here are 20 AI stocks expected to rise as much as 44% - Yahoo Finance - February 26th, 2024 [February 26th, 2024]
- 1 Exceptional AI Chip Stock Investors Need to Know About in 2024 - The Motley Fool - February 26th, 2024 [February 26th, 2024]
- Nvidia briefly hits $2 trillion valuation as AI frenzy grips Wall Street - Reuters - February 26th, 2024 [February 26th, 2024]
- AI Chatbots Can Guess Your Personal Information From What You ... - WIRED - October 18th, 2023 [October 18th, 2023]
- Harvard IT Launches Pilot of AI Sandbox to Enable Walled-Off Use ... - Harvard Crimson - October 18th, 2023 [October 18th, 2023]
- Advancing policing through AI: Insights from the global law ... - Police News - October 18th, 2023 [October 18th, 2023]
- Hochul announces new SUNY, IBM investments in AI - Olean Times Herald - October 18th, 2023 [October 18th, 2023]
- Nvidia's banking on TensorRT to expand its generative AI dominance - The Verge - October 18th, 2023 [October 18th, 2023]
- AI expands from MRFs to vehicles - Plastics Recycling Update - October 18th, 2023 [October 18th, 2023]
- AI Reads Ancient Scroll Charred by Mount Vesuvius in Tech First - Scientific American - October 18th, 2023 [October 18th, 2023]
- A DEEPer (squared) dive into AI Harvard Gazette - Harvard Gazette - October 18th, 2023 [October 18th, 2023]
- Florida bar weighs whether lawyers using AI need client consent - Reuters - October 18th, 2023 [October 18th, 2023]
- Cognizant and Vianai Systems Announce Strategic Partnership to ... - PR Newswire - October 18th, 2023 [October 18th, 2023]
- How AI could speed up scientific discoveries, from proteins to ... - NPR - October 18th, 2023 [October 18th, 2023]
- AI challenge to deliver better healthcare | Western Australian ... - Government of Western Australia - October 18th, 2023 [October 18th, 2023]
- Henry Kissinger: The Path to AI Arms Control - Foreign Affairs Magazine - October 18th, 2023 [October 18th, 2023]
- Stability AI releases StableStudio in latest push for open-source AI - The Verge - May 18th, 2023 [May 18th, 2023]
- Google CEO Sundar Pichai Predicts That This Profession Will Be ... - The Motley Fool - May 18th, 2023 [May 18th, 2023]
- Frances privacy watchdog eyes protection against data scraping in AI action plan - TechCrunch - May 18th, 2023 [May 18th, 2023]
- Investing in Hippocratic AI - Andreessen Horowitz - May 18th, 2023 [May 18th, 2023]
- As Alphabet flexes its AI prowess, there's a 'new elephant in the room' for Google - MarketWatch - May 18th, 2023 [May 18th, 2023]
- The Boring Future of Generative AI | WIRED - WIRED - May 18th, 2023 [May 18th, 2023]
- OpenAI readies new open-source AI model, The Information reports - Reuters.com - May 18th, 2023 [May 18th, 2023]
- What every CEO should know about generative AI - McKinsey - May 18th, 2023 [May 18th, 2023]
- AI creates images of the 'perfect' man and woman - Sky News - May 18th, 2023 [May 18th, 2023]
- Audit AI search tools now, before they skew research - Nature.com - May 18th, 2023 [May 18th, 2023]
- 3 Reasons C3.ai Stock Could Be Your Golden Ticket to the AI ... - InvestorPlace - May 18th, 2023 [May 18th, 2023]
- Zoom makes a big bet on AI with investment in Anthropic - VentureBeat - May 18th, 2023 [May 18th, 2023]
- AI voice phone scams are on the rise. Here's how to avoid them - USA TODAY - May 18th, 2023 [May 18th, 2023]
- Amazon is building an AI-powered conversational experience for ... - The Verge - May 18th, 2023 [May 18th, 2023]
- AI speculators need to 'differentiate between actual spending and investment' and hype: Strategist - Yahoo Finance - May 18th, 2023 [May 18th, 2023]
- AI Can Be Both Accurate and Transparent - HBR.org Daily - May 18th, 2023 [May 18th, 2023]
- You're Probably Underestimating AI Chatbots | WIRED - WIRED - May 18th, 2023 [May 18th, 2023]
- AI presents political peril for 2024 with threat to mislead voters - The Associated Press - May 18th, 2023 [May 18th, 2023]
- We need AI to help us face the challenges of the future - The Guardian - May 18th, 2023 [May 18th, 2023]
- End Of Googles Dominance? Stock Gets Rare Analyst Downgrade Over AI Fears - Forbes - May 18th, 2023 [May 18th, 2023]
- Watch 44 million atoms simulated using AI and a supercomputer - New Scientist - May 18th, 2023 [May 18th, 2023]
- AI Is The New Electricity: Bank Of America Picks 20 Stocks To Cash In On ChatGPT Hype - Forbes - March 2nd, 2023 [March 2nd, 2023]
- Tech Giants Are Barreling Headfirst Into an AI Arms Race - February 20th, 2023 [February 20th, 2023]
- Bing's AI Is Threatening Users. That's No Laughing Matter - TIME - February 20th, 2023 [February 20th, 2023]