Cloud computing: to the sky and beyond

Delian Partners
Nov 19, 2020
3 min read

Cloud based platforms are virtual networks which have been on the market since the early 2000s. In recent years they have experience a staggering growth as organizations globally have started looking for agile and scalable solutions to store, analyze and share an exponentially increasing amount of data.

The traditional company’s IT infrastructure seems increasingly inadequate to properly manage the massive flows of data generated daily, due to its non-scalable data storage capability and high management costs. The migration towards cloud-based technology solutions is becoming mandatory for organizations to stay ahead of the competition.

The global lockdowns experienced this year have only accelerated this trend due to the pressing need for companies to provide flexible solutions to allow employees to work efficiently from everywhere. Cloud computing systems can potentially have an impact on any business in the world, by enabling companies of all sizes, needs, and industries to embrace the digital transformation and avoid fixed costs such as equipment, staff training, or tools development.

Cloud technologies allow companies to scale up and speed their data management system from the get-go by sharing all information through the internet connection, rather than requiring implementation of new software or hardware. At the same time, the acceleration in deployment of technologies such as IoT and 5G are enhancing cloud systems to keep the latency to the minimum and increase the connectivity performance also in areas which previously would not have been accessible.

An example of an innovative cloud computing platform is Snowflake, an open data warehouse providing businesses across industries with easier and secure data access thanks to its virtual architecture, without hardware or software to configure. Thanks to its integrated cloud platform, Snowflake helps companies to maximize their efficiency by using and paying for storage and computation separately, which means companies can scale up and down the service ladder according to their needs. As Snowflake reports, a total of 250 petabytes of data runs through Snowflake’s cloud platform every day, an impressive performance when compared with tech giant Google which manages “just” 20 petabytes per day.

Microsoft is also heavily investing in the market: through its Azure Space division it is working on a new, space based, cloud ecosystem aiming to make the transmission of information easier by offering high-intensity cloud computing and secure satellite connectivity worldwide.

In the current and future scenario characterized by the rise of digitalization, the need for data analysis, storage and sharing is expected to increase massively. As reported by Markets&Markets research, the cloud industry is projected to continue its strong growth over the next years, growing from $371.4B in 2020 to $832.1B by 2025, at a CAGR of 17.5% during the forecasted period. In summary, cloud computing will act as a key enabler for companies by providing them with the flexibility, agility, and efficiency to accelerate their digital transformation and enhance their chance of survival in an extremely competitive environment.

The information in this article should not be regarded as a description of services provided by Delian Partners SA. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in this article are subject to change at any time without notice.

How far are we from fully autonomous vehicles?

Delian Partners
Jul 16, 2020
2 min read

In a recent interview Tesla’s CEO Elon Musk announced being “very close” to launching a level 5 autonomous driving vehicle and that he is investing billions to achieve this milestone quickly. The key difference between Level 5 and currently existing Level 4 vehicles is to make cars completely self-driving and autonomous without needing any human control. But concretely, how far are we from seeing fully autonomous driving vehicles on our streets?

Waymo, for example, part of Alphabet, is currently considered to have developed the most advanced autonomous vehicle in the market. Waymo’s vehicles have driven an aggregate 20 million miles, more than any other autonomous vehicle, within a fully connected environment, supported by its advanced machine learning algorithms and interaction with the ubiquitous Google maps. Waymo’s cars have been tested to identify obstacles and distance of road features and statistically reducing driving accidents.

In reality, to meet the expectation to simplify the driving experience and improve safety on the road, a fully connected ecosystem is necessary: through vehicle-to-vehicle communication, autonomous cars must transfer information with each other and at the same time, through vehicle-to-network data flow, cars must share information with urban infrastructures to solve problems connected with the traffic congestions, parking or other impediments.

A fully connected ecosystem is extremely data-hungry, making connected vehicles a potential massive source of data generation:

Chart: Data Comparison, Today’s iPhone vs. 2050 Autonomous Vehicle, source Morgan Stanley

Tech and communication companies are playing a key role in providing the digital infrastructure required by autonomous vehicles to interact with the multiple elements surrounding them by transmitting data through the 5G network.

According to Market Research, the global autonomous vehicle market is expected to rise to $65.3Billion by 2027, at a CAGR of 29.2% between 2016 and 2027. Today we are still at the early stages of this disruptive innovation wave supported by the synergistic interaction between AI, Machine Learning, and the digitalization of the automotive industry.

What is emerging right now, is the fact that automotive and tech companies are working together to evolve from specializing on specifics features like software or hardware, to being comprehensive, full-service providers for new sophisticated and generally tech-savvy customers.

5G Technology Represents a Virtuous Multi-Year Innovation Cycle

Delian Partners
Jun 18, 2020
2 min read

From the initial launch of 1G in late 1980 to analogically support basic voice communication, connectivity standards have gradually evolved towards digital, wireless technology. The advancements in spectrum usage have massively increased capacity of wireless data usage, leading to the launch of 5G in 2018/2019. This type of next-gen broadband mobility is a critical component of the upcoming cycle of technology innovation which includes Internet of Things, Advanced Display Technologies (including VR), Artificial Intelligence and Autonomous Driving.

5G is a critical component of the innovation wave because it is the most critical block of full connectivity, and a significant advancement compared to the current 4G technology. As the network performance improves dramatically over time, data users will benefit from 10 to 100 times faster speed, lower latency, higher density of connected devices, more broadband capacity, and less energy consumption.

The result is the emergence of a wide variety of potential applications, including smart cities, smart homes, industrial automation, and self-driving cars. For example, one fully connected car is essentially a “server on wheels” expected to generate about 25B of data from its sensors. For comparison, one hour of HD video streaming currently generates less than 1GB of data.

Considering that globally, the total amount of people connected to internet is also expected to grow from 3.9Billion in 2018 to 5.3Billion by 2023, the increase in data usage from connected devices is expected to surpass the network’s maximum capacity around 2028, when a more powerful 6G network will be necessary.

These findings evidence the requirement for data-centric Companies to stay aligned with the current wave of opportunities provided by the Connected Economy. 5G is creating a virtuous cycle where the increase of connection is enabling the use of software which, in turn, require more and more hardware to accommodate more advanced software applications. Therefore, the potential of these innovations cannot be ignored by investors who are focused on long-term growth opportunities, like those offered by the widespread applications depending on 5G innovation.

The 5G network upgrade is still in its initial phase, creating an exciting, multi-year, secular investment cycle that will be largely independent from the economic cycle. The synergies between augmented connectivity, IoT (Internet of Things), and advances in Artificial Intelligence represent a massive opportunity for the Connected Economy, due to the variety of advanced commercial applications which stretch beyond communication services such as mobile video applications.