Tuesday, December 26th 2017

NVIDIA Forbids GeForce Driver Deployment in Data Centers

NVIDIA recently updated the end-user license agreement (EULA) for their GeForce Software. There's one particular statement in the limitations section that caught our eye. And it reads: No Datacenter Deployment. The SOFTWARE is not licensed for datacenter deployment, except that blockchain processing in a datacenter is permitted. It seems that NVIDIA isn't too happy with data centers that utilize GeForce and TITAN graphics cards instead of the more expensive Quadro or Tesla cards. With this prohibition in place, data centers are forced to either invest in NVIDIA's pricier offerings or completely switch over to AMD. Data centers that are using GeForce products for cryptocoin mining are unaffected by this change in the EULA.
Clearly, NVIDIA isn't wasting any time and has already started to enforce their new EULA. Sakura Internet, one of the largest data centers in Japan, was the first to receive a notice from NVIDIA to stop providing servers with TITAN X products.

Here's the Google-translated press release from Sakura:

Sakura's dedicated servers High-firing series Quad GPU new provision temporary suspension
December 21, 2017 Dear customers, Sakura Internet Inc. Thank you very much for your continued patronage of Sakura Internet.

On November 30, 2017, the licensing terms for the use of NVIDIA Corporation's driver software have been revised and the license terms for the latest GeForce driver software. The provision of "prohibition of introduction to the data center" has been added. For details, refer to Article 2.1.3 from the following URL.
  • Japanese:
www.nvidia.co.jp/content/DriverDownload-March2009/licence.php?lang=jp&type=geforcem
  • English:
www.nvidia.com/content/DriverDownload-March2009/licence.php?lang=us&type=geforcem

In addition, we received written notice from NVIDIA Corporation. According to this notice, NVIDIA Corporation agrees to the above license terms on the GPU server service (Sakura's dedicated server high-fire series Quad GPU model) equipped with TITAN X provided by the Company, Based on the view that downloading the driver software for GeForce on the server is an infringement of copyright (reproduction right). We urge customers who have downloaded it on or after December 7, 2017 to stop offering the Quad GPU model.

We are currently considering NVIDIA Corporation's notice content with experts as well, but considering the possibility of inconvenience to our customers, we are considering the following "Sakura's dedicated server. We will temporarily suspend the new provision of the high-fire series Quad GPU model ".
  • Quad GPU (Pascal) model: TITAN X (Pascal architecture) installed
  • Quad GPU (Maxwell) model: TITAN X (Maxwell architecture) installed
TITAN X non- loading models (TESLA V100 model, TESLA P100 model, TESLA P40 model). We will continue to offer.

We are sorry to cause inconvenience, but we will do our utmost to make it possible for our customers to use our services with confidence. We sincerely appreciate your continued patronage.
Sources: NVIDIA, Sakura Internet
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90 Comments on NVIDIA Forbids GeForce Driver Deployment in Data Centers

#51
Fluffmeister
Nice problem to have, everyone wants your products. Great efficiency and great ecosystem.

Think of the children!!!!!1
Posted on Reply
#52
lexluthermiester
notbAnd are you sure this applies to commercial use? I.e. does a company also have the right to use things however it wants? Or is it just the consumers?
In the USA, and most of the civilized world, entities are treated as actual citizens, unfortunately. This status gives them the same, if not similar, rights.
notbWhat about typical software licenses?
They do not apply the same way. Any software that is required by or requires to function a specific hardware part, is legally bound to that hardware as a package. Manufacturers do not ever have the right to tell a private entity, be they are person, government, busines, etc., what they may or may not do with property they own. To lesser degree, the same applies to software as a stand alone product.
notbIf you're right about NV, what stops companies from using non-commercial software?
Nothing, they do it all the time. It's not illegal or even unethical. The software dev can ask, they can even try to require that only commercial/business products be used in such environments, but statutory ownership/usage rights superceed those conditions and even copyright law itself.
notbIn most cases (Microsoft, for example) a fully featured free version is available for learning. Why are companies paying millions for commercial SQL Server or Visual Studio?
Academic software is trickier, but at the end of the day, once you purchase academic software, it is yours to use in a manner that fits your needs. There are severe complexities that make software usage in a business/commercial environment somewhat iffy, but again that depends on use. In the context of NVidia's clauses, they state whatever they wish. What they can enforce is something else entirely.
RhysehThis is an update to the GeForce EULA. How is this different to any other EULA enforcement case?
Just because something is in a contract doesn't automatically make it enforceable or even lawful. That's why consumer protection laws exist the world over. Those same laws generally apply to all consumers, including businesses. In this case, NVidia is blowing wind out their bum.
Posted on Reply
#53
notb
lexluthermiesterIn the USA, and most of the civilized world, entities are treated as actual citizens, unfortunately. This status gives them the same, if not similar, rights.
By all means, no. Not true.
They do not apply the same way. Any software that is required by or requires to function a specific hardware part, is legally bound to that hardware as a package. Manufacturers do not ever have the right to tell a private entity, be they are person, government, busines, etc., what they may or may not do with property they own. To lesser degree, the same applies to software as a stand alone product.
Can you support it with something? :-D
And you're wrong in the general statement that I've underlined. Manufacturers don't tell you what you can do. They tell you what you can't do - and they are allowed to do that - based on copyright.
The software dev can ask, they can even try to require that only commercial/business products be used in such environments, but statutory ownership/usage rights superceed those conditions and even copyright law itself.
Wrong again. Copyright is the fundamental ownership right. It is above the rights that the buyer/user has. Otherwise it wouldn't make any sense.
Just because something is in a contract doesn't automatically make it enforceable or even lawful. That's why consumer protection laws exist the world over. Those same laws generally apply to all consumers, including businesses. In this case, NVidia is blowing wind out their bum.
Licensing is both enforceable and lawful. It has been for decades.
I just don't get how you missed that. What have you been doing for the last 30 years? :-P
Posted on Reply
#54
londiste
Consumer protection laws do not generally apply to all consumers. Or rather, they do, but businesses are not always defined to be part of consumers.

Enforcability is actually a really good question. I have a feeling that Nvidia has no plans to take this to court because that would just take too long. Cloud service provider likely has other contracts with Nvidia that will be used as leverage. Btw, Titans are almost exclusively sold by Nvidia themselves and warranty terms also state that datacenter usage voids warranty.
Posted on Reply
#55
remixedcat
newtekie1Hosting machines don't use Titans. This won't affect hosting costs one bit.


Or, you know, it could be that the data center companies advertise machines with desktop cards right on their websites...
it will because a lot more companies are offering them for compute ops. database performance is much faster.
Posted on Reply
#56
lexluthermiester
londisteOr rather, they do, but businesses are not always defined to be part of consumers.
True, and that's why I stated the term "generally". There are exceptions and whatnot. But many of those protections are there for business consumers.
londisteEnforcability is actually a really good question. I have a feeling that Nvidia has no plans to take this to court because that would just take too long. Cloud service provider likely has other contracts with Nvidia that will be used as leverage. Btw, Titans are almost exclusively sold by Nvidia themselves and warranty terms also state that datacenter usage voids warranty.
The court option is always possible, whether or not it would succeed is going to depend on how good each legal counsel team is. Most companies would look at a loss of warranty status' as a part of the cost model. Not really gonna hold them back given the costs of the alternatives.
Posted on Reply
#57
londiste
Also, I do not think the current TitanX case is the real problem Nvidia wants to tackle. Given the timing of EULA change, they want to prevent Titan Vs from being deployed in datacenters in large numbers.
Posted on Reply
#58
lexluthermiester
londisteAlso, I do not think the current TitanX case is the real problem Nvidia wants to tackle. Given the timing of EULA change, they want to prevent Titan Vs from being deployed in datacenters in large numbers.
That is very likely the motivation. The TitanV is a monstrous number cruncher.
Posted on Reply
#59
qubit
Overclocked quantum bit
This nasty tactic is what happens when competition disappears - monopoly practices. Notice how NVIDIA don't say no to cryptomining. Why? Because AMD are still competitive there and actually beat NVIDIA hands down, that's why.

It could well be that a lawsuit will stop them doing this. After all, datacentre operators have got money behind them unlike the average Joe like us and can fight back against such malpractice.
Posted on Reply
#60
londiste
qubit, what exactly makes this tactic nasty? Product segmentation is done by everyone.

They are not excluding cryptomining because AMD is more competitive there. They are excluding it because there is money in it for them unlike using Geforces for GPGPU/HPC applications.

Lawsuit, which is not likely to happen or I would say is not likely to be won by datacenter operators, would probably result in no more fully functional Titans rather than any other outcome. The reason datacenter operators have got money behind them is that they make money off the service that at least in part relies on the hardware in question. That makes it contractually and legally different from consumer use of cards.
Posted on Reply
#61
Aquinus
Resident Wat-man
qubitThis nasty tactic is what happens when competition disappears - monopoly practices. Notice how NVIDIA don't say no to cryptomining. Why? Because AMD are still competitive there and actually beat NVIDIA hands down, that's why.

It could well be that a lawsuit will stop them doing this. After all, datacentre operators have got money behind them unlike the average Joe like us and can fight back against such malpractice.
nVidia, the way you're meant to get played.

These kinds of business practices along with the hostility against the open source community is the very reason why I'm tolerating my 390.
Posted on Reply
#62
lexluthermiester
Aquinushostility against the open source community
They're not that hostile. Not like this nonsense anyway.
Posted on Reply
#63
qubit
Overclocked quantum bit
londistequbit, what exactly makes this tactic nasty? Product segmentation is done by everyone.

They are not excluding cryptomining because AMD is more competitive there. They are excluding it because there is money in it for them unlike using Geforces for GPGPU/HPC applications.

Lawsuit, which is not likely to happen or I would say is not likely to be won by datacenter operators, would probably result in no more fully functional Titans rather than any other outcome. The reason datacenter operators have got money behind them is that they make money off the service that at least in part relies on the hardware in question. That makes it contractually and legally different from consumer use of cards.
There's a difference between genuine product segmentation and an obvious money grab, which this is.

A genuine example of product segmentation is between a GeForce card and it's Quadro or Tesla equivalent. Those professional cards will have near enough the same processing power in games, but have other hardware and software differences, such as more reliable hardware (eg ECC memory) cherry picked GPUs and general board design and greater effort spent on debugging and validation of the hardware and drivers as well as better customer support from NVIDIA. That's where all that extra money goes - as well as a reassuringly expensive markup, of course. ;)

And yes, it's exactly because they know AMD is competitive in crypto. What do you think would happen if they excluded that too? All data centres using their cards for crypto would go AMD. Duh!

Yes, there are those legal differences, but I don't think they trump what I've said above.
AquinusnVidia, the way you're meant to get played.

These kinds of business practices along with the hostility against the open source community is the very reason why I'm tolerating my 390.
One does wonder how much influence Microsoft has in fostering such "hostilities" in the background. I'm thinking about their anti-Linux propaganda about a decade ago regarding "naked PCs" etc.
Posted on Reply
#64
londiste
qubitThere's a difference between genuine product segmentation and an obvious money grab, which this is.

A genuine example of product segmentation is between a GeForce card and it's Quadro or Tesla equivalent. Those professional cards will have near enough the same processing power in games, but have other hardware and software differences, such as more reliable hardware (eg ECC memory) cherry picked GPUs and general board design and greater effort spent on debugging and validation of the hardware and drivers as well as better customer support from NVIDIA. That's where all that extra money goes - as well as a reassuringly expensive markup, of course. ;)
Wait, what are you saying? When we look at what Quadro or Tesla equivalents provide over Geforce, then:
Hardware differences - Perhaps minor but check
Software differences - Check
More reliable hardware, board design etc - Check.
Greater effort on debugging validation etc - Check
Drivers and support - Check
Reassuringly expensive markup - Definitely check
What makes it not a genuine segmentation?
qubitAnd yes, it's exactly because they know AMD is competitive in crypto. What do you think would happen if they excluded that too? All data centres using their cards for crypto would go AMD. Duh!
Why would they want to exclude cryptomining? What would be the reasoning behind it? They do not have crypto-specific hardware that they would rather want to sell. Or maybe they do but crypto-specific cards have so far been cheaper than standard Geforces and they probably do not mind all that much about someone buying more expensive stuff. AMD being more competitive is more of an afterthought here.
Posted on Reply
#65
qubit
Overclocked quantum bit
londisteWait, what are you saying? When we look at what Quadro or Tesla equivalents provide over Geforce, then:
Hardware differences - Perhaps minor but check
Software differences - Check
More reliable hardware, board design etc - Check.
Greater effort on debugging validation etc - Check
Drivers and support - Check
Reassuringly expensive markup - Definitely check
What makes it not a genuine segmentation?
I'm not sure you're comprehending properly here. I said, "A genuine example of product segmentation is between a GeForce card and it's Quadro or Tesla equivalent" and then went on to list those differences you checked off. So how did you manage to understand the opposite? Maybe you just got confused which I could forgive you for. Also, I wouldn't call a more expensive type of RAM with error correction a minor difference.

I don't know why you're still arguing about the cryptomining.
Posted on Reply
#66
londiste
qubitI'm not sure you're comprehending properly here. I said, "A genuine example of product segmentation is between a GeForce card and it's Quadro or Tesla equivalent" and then went on to list those differences you checked off. So how did you manage to understand the opposite? Maybe you just got confused which I could forgive you for. Also, I wouldn't call a more expensive type of RAM with error correction a minor difference.
You are right, I somehow completely misunderstood what you said.
But that is exactly the product segmentation that we are talking about. What makes this an obvious money grab then as opposed to normal product segmentation?
qubitI don't know why you're still arguing about the cryptomining.
While you claim it is all about AMD, there are pretty clear and simple business reasons for excluding cryptomining other than anything to do with AMD.
Posted on Reply
#67
Easo
Is this fightable in a court? After all, I am not leasing those cards from Nvidia, they belong to me (just an example) and are pointless without drivers. And there has to be a justification WHY they cannot be used for said purposes.
Then again, not many would want to go against Nvidia, they have big coffers and the court process would last years and years, as is usual in these kinds of situations...
Posted on Reply
#68
GhostRyder
I believe this will mostly affect the Titan brand cards as they were good alternatives for render machines with their high amounts of ram. I am trying to remember what big animation company used bunches of Titans in their servers to render 3D animation (Pixar maybe?). I don't think there is really going to be a problem with like GTX 1080 in data centers, just really the Titans (Unless something like the 1080ti is also being used now).

Either way, not a big fan of this. Seems the Titan series keeps losing points over and over again...
Posted on Reply
#69
valentyn0
notbThe short answer is: by buying software you're signing the EULA, which is fundamentally built around copyright (no other way, to be honest).
Buying software? where the hell did Sakura buy software? they bought gpus, not software, and EULA is worthless in courts, EULA does not mean anything in a court, btw, a peasant or a big company can use however they see fit a product they bought (except software in some cases).
Posted on Reply
#70
notb
valentyn0Buying software? where the hell did Sakura buy software? they bought gpus, not software, and EULA is worthless in courts, EULA does not mean anything in a court, btw, a peasant or a big company can use however they see fit a product they bought (except software in some cases).
No, it has been explained already. A GPU comes with drivers. There is an EULA for these drivers.

If you don't want to use the original drivers, you have 2 choices:
1) use your GPU as a paperweight, bookholder or something similar,
2) use non-manufacturer drivers.
Going with (2) you're losing manufacturer's support and warranty - a no-go for commercial datacenters.

Looking at this problem from a more customer-ish perspective, most people aren't really buying much software. They are buying computers. A computer usually includes something called Windows and something called MS Office. So, in your opinion, is this customer buying just hardware or also software?

And on the other hand, there is some software built-in the PC electronics (BIOS and other low-level stuff). These can be copyright-protected as well.

Do you own a car? Cars have huge amounts of software - not just drivers etc, but also the OS that operates the interfaces. Via the console (radio, navigation and stuff) you should be able to find the license information. So you bought a vehicle, but some software copyright is still in force.
Posted on Reply
#71
john_
DimiYeah because we should all enjoy large datacenter companies gobble up ALL of the CONSUMER oriented gpu's so prices will go even higher for regular CONSUMER grade video cards and then we can complain to Nvidia that our Geforce cards are expensive in stores right?

This is a good move from Nvidia.
Nvidia can always produce more Titan/GeForce cards, or lower the price of Tesla/Quadro cards. Whatever suits them better.
Posted on Reply
#72
anubis44
And people continue to feed this Green Goblin. They can keep doing what they want because people buy their stuff, even when it's worse than AMD's.

Posted on Reply
#73
notb
anubis44And people continue to feed this Green Goblin. They can keep doing what they want because people buy their stuff, even when it's worse than AMD's.
Oh, is it? :)
What's wrong with this guy? This channel is just pure AMD fanboyism. :-D I watched a few videos and they provide hardly any information (even about AMD) - it's mostly just bashing Intel and NVIDIA. Is this the way proper fanboys think? I'm starting to worry I'm not worth of "Intel fanboy" order. :)
And it has 58k followers! Are these all AMD GPU owners or what? :roll:

EDIT:
I've watched his video about global warming (not a very good one, but whatever) and then checked THE COMMENTS!
It seems at least some of the 58k people follow him purely for entertainment. :-D

Posted on Reply
#74
Red_Machine
Couldn't they simply elect not to install GeForce Experience? It is an optional install, after all. Just install the GPU driver.
Posted on Reply
#75
lexluthermiester
john_Nvidia can always produce more Titan/GeForce cards, or lower the price of Tesla/Quadro cards. Whatever suits them better.
anubis44And people continue to feed this Green Goblin. They can keep doing what they want because people buy their stuff, even when it's worse than AMD's.

OH for crying out loud, can we stop with the tit-for-tat fanboy crap?

Both companies make great products. End of story. NVidia products do some tasks marginally better than AMD's offerings and AMD's products do marginally better at other tasks. The details that define what you should buy is your budget, what you want to do and how long you need to do it. The smart buyer does their homework(research) and buys what fits their needs. Moron's play the brand loyalty card.
EDIT; Should clarify. There nothing wrong with brand loyalty, per-se. But when it gets in the way of sound judgment, logic and factual reasoning, that's when it becomes moronic.
Posted on Reply
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