Breaking Analysis with Dave Vellante

New data suggests that tech spending will be higher than we previously thought for 2021. COVID learnings, a faster than expected vaccine rollout, productivity gains & gain-sharing; along with broad-based cloud adoption, lead us to raise our outlook for next year. We now expect a 3-5% increase in 2021 technology spending, roughly double our previously forecasted growth rate.

The storage business as we know it has changed forever. On premises, external storage was once a virtually unlimited and untapped bastion of innovation, VC funding and lucrative exits. Today it is a shadow of its former self and the glory days of storage in the data center will not return. https://lnkd.in/daYA9A5

2020 has acted as a hasty but effective proof of concept for how to digitally transform businesses. CIOs report that generally, technology spending levels have either rebounded or will do so in the near future, setting up what could be a stronger 2021 than we’ve previously reported. https://lnkd.in/d_bhfYA

Cloud computing has been the single most transformative force in IT over the last decade – what will Cloud 2030 look like? As we enter the 2020s, we believe that cloud will become the underpinning of a ubiquitous, intelligent and autonomous resource that will disrupt the operational stacks of virtually every company in all industries.

Remote work has caused CISOs to shift spending priorities toward identity access management, endpoint and cloud security. COVID has been a benefactor to "NextGen" security companies that participate in these sectors. Notably, we believe tactical responses to the coronavirus have resulted in productivity improvements that will create permanent change in the way organizations defend themse...

Breaking Analysis: How Snowflake Plans to Fix a Flawed Data Model Snowflake will not grow into its valuation by simply stealing share from the on-prem data warehouse vendors. Even if it got 100% of the data warehouse business it wouldn’t come close to justifying its market cap. Rather Snowflake must create a new market based on completely changing the way organizations think about monetizing data.

As we watch an historic election unfold before our eyes, we look back at the early days of this millennium and the memorable presidential race of 2000. That decade was defined by 9/11, which permanently re-shaped our thinking. We exited the ’00s at the tail end of a massive financial crisis only to enter the 2010’s with hope, and the momentum of fiscal stimulus, a flat globe, job growth and very i...

Azure Cloud is the linchpin of Microsoft’s go forward innovation strategy. Big tech came under fire again this week but Microsoft CEO Satya Nadella was not one of those CEOs getting grilled. Unlike Google, Microsoft does not heavily rely on ad revenues. Rather the company’s momentum is steadily building around Azure Cloud which by my estimates is now ~19% of Microsoft’s overall revenues.

The cookie apocalypse is coming. Massive changes in public policy threaten Google's traditional business. The company's response to the DoJ’s antitrust suit should be to double or triple its focus on cloud and edge computing – a multi-trillion dollar opportunity.

As we reported in our last update, tech spending overall continues to be significantly muted relative to 2019. We currently project a 4% to 5% decline in 2020 spending and a tepid 2% increase in 2021. Nonetheless, there are some sector and vendor bright spots in an overall challenging market.

In the most recent September ETR spending survey, CIOs expect a slight sequential improvement in Q4 spending relative to Q3– but still down 4% from Q4 2019. So the picture is still not pretty but not bleak either. Firms are adjusting to the “new abnormal” and are taking positive actions that can be described as a slow thawing of the deep freeze. In this Breaking Analysis we will review fresh surve...

Breaking Analysis: Application Performance Management…From Tribal Knowledge to Digital Dashboard For years, application performance monitoring/management (APM) has relied on alerts, logs, traces and even tribal knowledge. In the pre-distributed systems world, this was fine. But things got much more complicated architecturally with cloud and are changing so fast with containers and serverless. Toda...

Now that Snowflake's IPO has hit, we're getting inundated with inbounds & questions. What have we learned? Is the stock over valued? Can Snowflake grow into its valuation? Should I buy? When should I buy? Can Snowflake compete with the big cloud vendors? In this segment we try to answer these & other questions with opinions backed by data from our friends at Enterprise Technology...

Stock market recoil pulls the rug out from many tech investors. Leaving them wondering what’s next?  The steepest drop in the stock market since June 11th flipped the narrative and sent investors scrambling. Tech got hammered after a 2-month run and people are asking questions. Is this a bubble popping or a healthy correction? Are we now going to see a rotation into traditional stocks like banks a...

Enterprise software markets are dominated by mega cap companies like SAP, Oracle, Salesforce and Microsoft. SaaS leaders like ServiceNow and Workday have solidified their market positions by, to a great extent, replicating the Salesforce model in their respective domains. There is still room for innovative upstarts that are introducing new cloud native services and value pricing models but the tra...

Cloud, IAM & Endpoint Security are rocking the markets. Over the past 150 days, everyone in the technology industry has become an expert on COVID in some way shape or form. We have all lived the reality that COVID-19 has accelerated by at least 2 years, many trends that were in motion well before the virus hit. The cyber security sector is no exception and one of the best examples where we hav...

While cloud computing is a bright spot in tech spending, the sector is not immune from the effects of COVID-19. Recent ETR survey data shows that the V-shaped recovery in the stock market looks much more like a square root sign for IT spending in 2020. And even the cloud will be negatively impacted, albeit much less so than many other sectors.

Survey data shows robotic process automation ( #RPA ) solutions remain one of the most attractive investments for business technology buyers-- On par with AI/ML, ahead of containers and cloud computing. In this week's CUBE Insights, Powered by ETR, we introduce new thinking on the Automation TAM & explore the competitive spending dynamics between Automation Anywhere , UiPath , Blue Prism...

According to reports, Snowflake recently filed a confidential IPO document with the U.S. Security and Exchange Commission. Sources suggest that Snowflake’s value could be pegged as high as $20B.   In this week’s Breaking Analysis we address five questions that we’ve been getting from theCUBE, Wikibon and ETR communities. ETR’s Erik Bradley provides data and insights from customer roundtable discus...

Despite its faster growth in infrastructure-as-a-service relative to AWS and Azure, Google Cloud Platform remains a third wheel in the race for cloud dominance. Google begins its Cloud Next online event starting July 14th in a series of nine rolling sessions through early September. Ahead of that, we want to update you on our most current data on Google’s cloud business.  In this week’s Wikibon CU...

theCUBE host Dave Vellante (@dvellante) shares his analysis of new rules for digital technology events

Last week, the The Wall Street Journal reported that Dell Technologies was exploring options with its VMware ownership. The stocks of both companies jumped on the news and gave short sellers something to think about. In this Breaking Analysis we identify and analyze five (5) strategic scenarios we think Michael Dell is considering with his team.

theCUBE host Dave Vellante (@dvellante) is joined by Sagar Kadakia (@S_Kadakia) as they reflect upon ETR data regarding the recovery economy  Recorded originally on 5/27/2020

theCUBE host Dave Vellante (@dvellante) shares his analysis of ETR data  Originally recorded on 5/12

The latest survey data from ETR shows that CIO sentiment is shifting to perceived 'safe bets.' Some emerging tech companies are seeing accelerated momentum but on balance, the COVID pandemic is favoring larger, more established players at the expense of emerging tech vendors.