Taking to the Economic Times Churchward said that data challenges for the Internet of Things or driverless cars were huge,
He said that millions of driverless cars, and billions of other internetconnected devices will not be Big Data. “What you have is not big data, it is actually `small data’ – because what it is, is billions and billions of small data objects.”
EMC expects IoT to create a sprawl of billions of autonomous devices, which will create security, storage and management nightmares in future.
Churchward warned that “small data sprawl” will take the challenges of Big Data and make them 100x more difficult.
Security, storage, management and applications would be completely different in a world filled with billions of devices, each of which will have its own big data. None of the currently available tools and applications would work in such environments.
Part of EMC’s over $2.3-billion research and development budget is being used to address this `small data’ problem but the company thinks that it will take between three to five years to start bearing fruit.
Its senior vice president and general manager of the computing and graphics business group John Byrne thinks that it is much wiser to keep pushing into the PC market, which is still a $40-billion-a-year opportunity.
Talking to Venture Beat he said that AMD has to execute on its upcoming Carrizo family of accelerated processing units (APUs), which will be focused on the mobile computing market. About 300 million PC processors and 90 million graphics chips are sold each year, and Byrne wants AMD to get its fair share of those sales.
Byrne thinks that setting up a chip making operation for the Internet of Things is just an invitation to lose money.
Byrne said while it concentrated on the IoT, Intel it was missing opportunities in the classic PC market.
“There’s still 300 million PCs, still 90 million graphics chips. If I look at Intel, Nvidia, and my revenue, that’s still a $40 billion market — even before you get to the IoT. If you look at the gross margin profile of that business, it’s still significantly more than AMD as a company’s average. There’s still significant market opportunities in the classic PC space,” Byrne said.
He said that AMD still had work to do in the PC chip market. It had to work on its x86 performance, ensuring that each product it bought to market is better x86. There needed to be improvements in graphics, notebooks needed to improve battery life.
Byrne said that it all meant that AMD could push into the commercial market a long more. He pointed out that AMD won the industry’s largest single tender in commercial 18 months ago in India and Elitebook with HP last year.
“Wait until you see the lineup of commercial platforms I have with Carrizo. It allows us to continue to attack that i3, attack that i5 consumer, and really get to penetrate the commercial market space. We’ll attack graphics. That’s going to be my strategy next, he said.
While he said that the Internet of Things is important there are two ways to make cash from it. Intel is concentrating on the silicon inside the wearable. However, that will cost under $10 and not make huge amounts of cash.
“You’re seeing that with Quark and some of the other investments our competitors are making. I’m not in business to lose money. Share and revenue is nice but so is profitability,” he said.
But all of those devices have to be connected and it is those higher end devices that AMD will be targeting.
At the CES show at Las Vegas this week, Intel Chief Executive Brian Krzanich showed off a computer built into a jacket button and a wristband that transforms into a selfie-snapping flying camera drone.
It says a lot about where Intel sees the future of computing. Gone are the days of number crunching business computers, instead the world’s chip makers are developing gadgets which are better at photographing their own users.
Already tourist destinations are full of people carrying their phones on sticks so that they can take snaps of themselves at famous monuments without needing a friend. Now it seems that Intel sees a future for machines that can take pictures of bald heads at famous monuments while at the same time navigating through a sea of Japanese drones re-enacting a narcissistic battle of Midway on the Spanish Steps.
Krzanich used most of his keynote to talk up Intel’s efforts in computerised apparel and other sensor-packed gadgets as consumers get bored with their tablets and start selling their kidneys for the next shiny thing.
Curie, a new button-sized computer for smart clothes, is due out later in 2015 and includes Bluetooth radio as well as the latest from Intel’s Quark line of low-power chips. However Krzanich did sound a little like an East End market barrow boy when he talked about “rings, bags, bracelets, pendants, and yes, even the buttons on our jackets.” They are not dodgy, not dodgy.
Intel is working with Oakley to launch a smart gadget for athletes later this year, Krzanich said. The chipmaker in December announced it was developing smart glasses with Luxottica, which owns the Oakley brand.
Krazanich also said that he was spending $300 million to get more women and minorities in the technology and the video game industries. Note that money will be spent training women and minorities, there is no guarantee that Intel or any other technology company will hire them.
Intel has a poor record of accomplishment employing women and some minorities. While it is happy to hire Chinese and Indian workers, because they are nice and cheap, only a quarter of Intel’s US employees in 2013 were women and 12 percent of its workforce were Hispanic or African American.
Last year Intel made a huge mistake by backing the misogynistic GamerGate campaign to pull advertising from gaming news sites who dared to slam sexism in the gaming industry. In the end it changed its mind and resumed advertising.
Intel bought preferred stock that is convertible into common shares equivalent to 30 percent of Vuzix, Vuzix said in a press release.
New York-based Vuzix develops computerised, internet-connected glasses and other video eyewear aimed at consumers, businesses and entertainment. Intel is dead keen to get its foot in the door of such market having been too late into the smartphones and tablets fad.
It is the second big deal to be announced in a month. In December, Italy’s Luxottica said it was joining forces with the US chipmaker to develop glasses that combine its top fashion brands with technology that could allow wearers to access information about their health or location.
Intel has also teamed up with watch retailer Fossil and fashion brand Opening Ceremony to develop wearable devices such as fashion bracelets with communications features and wireless charging.
It is all early days yet, but it seems that Intel is preparing the ground.
The MEMS category of semiconductors includes accelerometers, pressure sensors, timing components and microphones.
MEMS are used in areas like asset tracking, smart grids, building and other sectors. Market research company IHS said that revenues last year were $16 million but will be worth $120 million yearly by 2019.
But MEMS will also be widely used in datacentres and this means that this sector of the market will be worth $214 million in 2018.
By 2025, shipments of MEMS for industrial IoT equipment will amount to 7.3 billion units. Last year 1.8 billion units shipped.
Datacentres will want optical MEMS, used for wavelength selective switches and optical cross connects.
According to the Xinhua news agency, both companies will work on creating 3D product displays and “visual fitting rooms”, smart hardware, and servers for enterprises for promoting online shopping.
Xinhua said jd.com is one of the world’s top 10 internet companies and Intel will help it improve its existing e-commerce services as well as working on new applications related to ID authentication, security, and database monitoring.
Jd.com has something like 25 million registered users.
No financial details of the deal between the two corporations was released.
Intel has been trying to reposition itself in the last 18 months as more of a general purpose corporation, rather than just a manufacturer of X86 chips. It also wants a chunk of the lucrative pie known as the internet of things, and is still desperate to make its mark in the mobile and tablet markets.
This deal, then, is something of an oddity.
Verizon commissioned the Harvard Business Review to conduct a report and that suggested the IoT is already here in the shape of connectivity, cloud computing, and miniaturisation of sensors “making it possible” for over 10 billion devices to be networked.
Nevertheless, HBR’s Analytic Services surveyed 269 business leaders and says the number of deployments is still relatively small.
While estimates say that IoT could add 10s of trillions of dollars to GDP in the next 10 years, HBR says defining it goes way beyond wearable devices, smart meters and connected cars.
The survey, conducted last September on early IoT adopters, concludes those using it were doing so to improve customer services, increase revenues from services and products, better using assets in the field, and picking up additional data for analytics.
Applications include asset tracking, security, fleet management, field force management, energy data management and “condition based monitoring”.
There are challenges to adopting IoT that include pivacy and regulatory compliance. HBR said most legislation and industry regulations predates the use of IoT. Managing the sheer amount of data will also be a problem, and finding people with skill sets capable of using IoT data.
The report said in healthcare, Varian, a manufacturer of medical devices, says the IoT meant a 50 percent reduction to repair connected devices. Pirelli is using the IoT to manage data from sensors embedded in its Cyber Tyre range. And Ford’s Connected Car Dashboards programme collects and analyses data from cars to better understand driving patterns and behicle performance.
That’s according to financial company Hampleton Partners, which said in a report that vendors have spent over $9 billion in the marketplace in the last few years in a bid to put their stake in the ground.
And early players in that market include Google, Samsung, Verizon and others. Apple wants to make a play in the market too.
In the next year, Hammpleton thinks that other companies will make acquistions in the next year or so to get into a market estimated to be worth many billions by the end of the decade.
Those include Intel, TI, Texas Instruments and AT&T.
One of the problems is that when there are countless devices equipped with semiconductors and the ability to be connected to the internet, is that there are few standards and so far few attempts to create such standards.
Estimates vary about the number of devices connected by the end of the decade but it’s certain the number will be in tens of billions. Each device, however, will cost very little – money to be made will be in the way such things are interconnected and structured.
A report in Taiwanese wire Digitimes said that ARM has made serious attempts to invade the server business but hasn’t succeeding in storming the Intel fortress.
And with Intel having an 80 percent share in the PC market, shareholders in the chip giant believe that despite its appalling performance in the mobile space, it will continue to make high margins from its server chip offerings.
AMD is waiting in the wings but doesn’t have a great deal of traction in the server business, the report claims.
Both ARM and Intel hope to make vast profits by being in the vanguard in offering products that will leverage the expected boom in the “internet of things”.
Intel and ARM are relying on cloud based apps to make everything work together. These things are only a tiny fraction of the internet of things, however, and it’s hard to see either company having much of a share in the expected bonanza.
But it appears that the chip giant hasn’t given up the ghost on such a plan and, according to Taiwanese wire Digitimes, is likely to pour more cash into the venture.
Intel’s problem is that it has faced overwhelming competition on price from companies that use microprocessors from Mediatek and Qualcomm, based on designs from British chip designer ARM.
Even though Intel has several ARM licences, it declines to use those to compete and wants the market to realise the important part it plays in the mobile arena. Or, to put it differently, Intel is a proud company and doesn’t want to lose face.
The subsidies to vendors have been aimed at tablets with screen dimensions of 10 inches and below, but Digitimes now says it may well extend those subsidies to tablets 12 inches and below.
Intel cannot afford not to be in the tablet business because it wants to be a key player in the so called Internet of Things. Last week the chip giant said it was going to merge its mobile and comms businesses with its PC business, which will effectively disguise the hole in its profit and loss statements in the future.
But this is only the beginning, according to research from the Gartner Group. It said that there will be 25 billion such devices in 2020 and next year’s figure of 4.9 billion is up 30 percent from this year.
Jim Tully, a VP at Gartner, said: “The digital shift instigated by the nexus of forces such as cloud, mobile, social and information, and boosed by the internet of things (IoT) threatens many existing businesses. They have no choice but to pursue IoT, like they’ve done with the consumerisation of IT.”
Gartner estimates that the IoT will support $69.5 billion of service revenues in 2015 and a staggering $263 billion by 2020.
There are security implications here. Gartner thinks that by the end of 2017, over 20 percent of organisations will have digital security services protecting devices and services in the internet of things.