According to TrendForce's latest survey of the server market, many cloud service providers (CSPs) have begun large-scale investments in the kinds of equipment that support artificial intelligence (AI) technologies. This development is in response to the emergence of new applications such as self-driving cars, artificial intelligence of things (AIoT), and edge computing since 2018. TrendForce estimates that in 2022, AI servers that are equipped with general-purpose GPUs (GPGPUs) accounted for almost 1% of annual global server shipments. Moving into 2023, shipments of AI servers are projected to grow by 8% YoY thanks to ChatBot and similar applications generating demand across AI-related fields. Furthermore, shipments of AI servers are forecasted to increase at a CAGR of 10.8% from 2022 to 2026.

NVIDIA has recently reported its Q4 earnings, and the earnings call following the report contains exciting details about the company and its plans to open up to new possibilities. NVIDIA's CEO Jensen Huang has stated that the company is on track to become an AI-as-a-Service (AIaaS) provider, which technically makes it a cloud service provider (CSP). "Today, I want to share with you the next level of our business model to help put AI within reach of every enterprise customer. We are partnering with major service -- cloud service providers to offer NVIDIA AI cloud services, offered directly by NVIDIA and through our network of go-to-market partners, and hosted within the world's largest clouds." Said Mr. Huang, adding that "NVIDIA AI as a service offers enterprises easy access to the world's most advanced AI platform, while remaining close to the storage, networking, security and cloud services offered by the world's most advanced clouds. Customers can engage NVIDIA AI cloud services at the AI supercomputer, acceleration library software, or pretrained AI model layers."

In addition to enrolling other CSPs into the race, NVIDIA is also going to offer DGX machines on demand in the cloud. Using select CSPs, you can get access to an entire DGX and harness the computing power for AI research purposes. Mr. Huang noted "NVIDIA DGX is an AI supercomputer, and the blueprint of AI factories being built around the world. AI supercomputers are hard and time-consuming to build. Today, we are announcing the NVIDIA DGX Cloud, the fastest and easiest way to have your own DGX AI supercomputer, just open your browser. NVIDIA DGX Cloud is already available through Oracle Cloud Infrastructure and Microsoft Azure, Google GCP, and others on the way."

Microsoft's Windows Server 2008 and 2008 R2 customers still represent a large group, as Microsoft has announced an additional year of Extended Security Updates (ESU) with a caveat. Only available for Microsoft Azure customers, the ESU program will allow Windows Server 2008 and R2 users on Azure cloud to get security updates until January 9, 2024. By no means is this not a free program, and Microsoft will bill this extensively as it is available internationally. Many customers are forced to join the ESU program for their Windows Server 2008 and R2 systems, as upgrading the OS to the latest version is not always possible without significant downtime or a hardware update.

The following customer base has legibility to the fourth year of the ESU program:

• Windows Server 2008 R2 Service Pack 1 (SP1)
• Windows Server 2008 Service Pack 2 (SP2)
• Windows Embedded POSReady 7
• Windows Embedded Standard 7
• All Azure virtual machines (VMs) running Windows Server 2008 R2 and Windows Server 2008 operating systems on Azure, Azure Stack, Azure VMWare Solutions, or Azure Nutanix Solution.

Today, we are announcing the third phase of our long-term partnership with OpenAI through a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.

This agreement follows our previous investments in 2019 and 2021. It extends our ongoing collaboration across AI supercomputing and research and enables each of us to independently commercialize the resulting advanced AI technologies.

IonQ, Inc. (NYSE: IONQ), an industry leader in quantum computing, today announced plans to open the first known dedicated quantum computing manufacturing facility in the U.S., located in the suburbs of Seattle, Washington. The new facility will house IonQ's growing R&D and manufacturing teams, as they develop systems to meet continued customer demand. With public support from U.S. Senator Patty Murray (D-WA) - an early proponent of the CHIPS and Science Act - and Congresswoman Suzan DelBene, US representative from Washington's 1st congressional district,today's announcement is part of IonQ's broader intent to invest $1 billion through expansion in the Pacific Northwest over the next 10 years.

"IonQ making the decision to open the first ever quantum computing manufacturing facility in the country right here in Bothell is a very big deal—and it's great news for Washington state," said Senator Murray. "Opening this facility will absolutely help ensure Washington state continues to be a leader in innovation and cutting-edge technologies—but it also means jobs that will be an investment in our families and their futures. These are the kinds of investments that happen when we pass legislation like the CHIPS and Science Act to invest in American manufacturing and build the economy of the future right here at home."

Amidst the global economic downturns, Microsoft is reportedly joining other tech giants in reducing the amount of the company's working staff. According to Sky News, citing its sources, Microsoft will lay off as many as 5% of its workers. The company's massive team of over 220,000 employees will affect a large group estimated to be close to 11,000 people. In addition, Sky News' Wall Street Analyst source suggests that the people familiar with the matter would not be surprised if the reported figure is higher. If finalized, the decision is expected to be made official by Microsoft's chairman and CEO, Satya Nadella, on January 24.

The company's current market capitalization is $1.79 trillion, making it one of the world's most valuable companies. However, more than the investment in expanding Azure cloud services is needed to offset the stagnating consumer segment where Microsoft dominates with its Windows and Office services, so the company is forced to cut a part of its workforce. We don't have exact details on which segment is getting the highest deduction in staff; however, we expect to hear more at the company's Q4 2022 results call on January 24.

Today, we shared our vision for the next era of the Windows PC, where the PC and the cloud intersect and tap into innovative AI technology that unlocks new experiences. So that each of us can participate, be seen, heard and express our creativity.

For nearly 40 years, the Windows PC has held a place at the center of our lives. It's contributed to new levels of productivity, kept us all connected, and unlocked our creativity and potential through innovations we couldn't have imagined when we first began this journey. Just think about how far we've come in how people interact with it. From the very first text-based keyboard input to the precision of point and click with the mouse, up to today, where touch, voice, pen and gestures all help people use the Windows PC more naturally and intuitively. From its inception, Surface has been a catalyst for that change.

AAEON, an industry leading developer of edge computing platforms, is happy to announce that it has joined the Azure Certified Device program, ensuring customers get IoT solutions up and running quickly with hardware and software that has been pre-tested and verified to work with Azure IoT. This certification assures that AAEON's new NVIDIA Jetson AGX Orin -powered BOXER-8641AI has been tested for functionality and interoperability, ensuring that it has used the Microsoft reference configuration to become one of the market's first Azure-certified NVIDIA Jetson Orin devices.

This announcement illustrates AAEON's continued innovation in the edge AI space, as the BOXER-8641AI has been validated to work with Azure and the latest versions of IoT Edge. Such a certification gives AAEON customers confidence that when choosing the BOXER-8641AI for their application, it is fully IoT Edge compatible.

AMD announced that the AMD Pensando Distributed Services Card, powered by the industry's most advanced data processing unit (DPU)1, will be one of the first DPU solutions to support VMware vSphere 8 available from leading server vendors including Dell Technologies, HPE and Lenovo.

As data center applications grow in scale and sophistication, the resulting workloads increase the demand on infrastructure services as well as crucial CPU resources. VMware vSphere 8 aims to reimagine IT infrastructure as a composable architecture with a goal of offloading infrastructure workloads such as networking, storage, and security from the CPU by leveraging the new vSphere Distributed Services Engine, freeing up valuable CPU cycles to be used for business functions and revenue generating applications.

Microsoft is announcing the general availability of the latest Azure Virtual Machines featuring the Ampere Altra Arm-based processor. The new virtual machines will be generally available on September 1, and customers can now launch them in 10 Azure regions and multiple availability zones around the world. In addition, the Arm-based virtual machines can be included in Kubernetes clusters managed using Azure Kubernetes Service (AKS). This ability has been in preview and will be generally available over the coming weeks in all the regions that offer the new virtual machines.

Earlier this year, we launched the preview of the new general-purpose Dpsv5 and Dplsv5 and memory optimized Epsv5 Azure Virtual Machine series, built on the Ampere Altra processor. These new virtual machines have been engineered to efficiently run scale-out, cloud-native workloads. Since then, hundreds of customers have tested and experienced firsthand the excellent price-performance that the Arm architecture can provide for web and application servers, open-source databases, microservices, Java and.NET applications, gaming, media servers, and more. Starting today, all Azure customers can deploy these new virtual machines using the Azure portal, SDKs, API, PowerShell, and the command-line interface (CLI).

Microsoft Corp. today announced the following results for the quarter ended June 30, 2022, as compared to the corresponding period of last fiscal year:

• Revenue was $51.9 billion and increased 12% (up 16% in constant currency)
• Operating income was $20.5 billion and increased 8% (up 14% in constant currency)
• Net income was $16.7 billion and increased 2% (up 7% in constant currency)
• Diluted earnings per share was $2.23 and increased 3% (up 8% in constant currency)

"We see real opportunity to help every customer in every industry use digital technology to overcome today's challenges and emerge stronger," said Satya Nadella, chairman and chief executive officer of Microsoft. "No company is better positioned than Microsoft to help organizations deliver on their digital imperative - so they can do more with less."

Hyperscalers such as Microsoft, Google, Amazon, etc., all run their cloud divisions with a specific goal. To provide their hardware to someone else in a form called instance and have the user pay for it by the hour. However, instances are usually bound by a specific CPU and memory configuration, which you can not configure yourself. But instead, you can only choose from the few available options that are listed. For example, when selecting one virtual CPU core, you get two GB of RAM and can go as high as you want with CPU cores. However, the available RAM will also double, even though you might not need it. When renting an instance, the allocated CPU cores and memory are yours until the instance is turned off.

And it is precisely this that hyperscalers are dealing with. Many instances don't fully utilize their DRAM, making the whole data center usage inefficient. Microsoft Azure, one of the largest cloud providers, measured that 50% of all VMs never touch 50% of their rented memory. This makes memory stranded in a rented VM, making it unusable for anything else.

At Azure, we find that a major contributor to DRAM inefficiency is platform-level memory stranding. Memory stranding occurs when a server's cores are fully rented to virtual machines (VMs), but unrented memory remains. With the cores exhausted, the remaining memory is unrentable on its own, and is thus stranded. Surprisingly, we find that up to 25% of DRAM may become stranded at any given moment.

The recent semiconductor shortage has put an unprecedented amount of focus on the industry. Both commercial and government entities have come to recognize the lack of advanced node semiconductor manufacturing capabilities onshore in the United States. Intel Foundry Services (IFS) entry into the commercial foundry space is poised to change all that. As part of IFS Accelerator program, Intel recently announced their new IFS Cloud Alliance program, with Microsoft Azure as one of the inaugural members.

This is the latest chapter in a partnership between Intel and Microsoft that stretches back decades all the way back to the early days of the personal computer. In the last few years, Intel and Microsoft have collaborated on advancing semiconductor design on the cloud by working together to bring out EDA centric cloud compute such as the FX series on Azure, working with EDA vendors to enhance their software to better take advantage of the elasticity of the Azure cloud, as well as collaborating on a secure cloud-based semiconductor development platform for the US Department of Defense RAMP and RAMP-C programs.

Today, Microsoft launches Azure Virtual Machines (VM) based on the Ampere Altra Cloud Native Processor. This marks an important milestone as developers can now take advantage of these modern high-performance VMs for their existing and greenfield applications. The Ampere Altra processor family leads in performance across a range of broadly deployed cloud workloads and is now making available the Arm architecture on Azure.

Industry leading performance and the most sustainable solution
Cloud users who have pushed the limits of legacy x86 architectures now have a high-performance compute alternative that scales up in a linear fashion and delivers predictable performance even at full utilization. For example, Ampere Altra VMs outperform equivalently sized Intel and AMD instances from the same generation by 39% and 47%, respectively.* In addition to being the high-performance choice, Ampere Altra processors are extremely power efficient, directly reducing users' overall carbon footprint.

IonQ, a leader in quantum computing, today announced that it had signed an agreement with Microsoft to bring IonQ Aria to the Azure Quantum platform. The partnership will add IonQ Aria, the company's latest quantum system, to the cloud platform which already features IonQ's prior generation of systems among the lineup of available hardware. IonQ Aria is IonQ's most advanced commercially available quantum computer. Featuring 20 Algorithmic Qubits (#AQ), it is also the industry's most powerful quantum computer based on standard application-oriented industry benchmarks. Through this partnership, anyone with an internet connection will be able to harness IonQ Aria's abilities, furthering the democratization of quantum computing.

"We're excited to bring IonQ Aria's leading capabilities to more customers through Microsoft Azure and our Expanded Beta program," said IonQ President and CEO Peter Chapman. "We believe the future of quantum computing relies on getting the power of today's systems into the hands of as many people as possible, and building on our existing partnership with Microsoft is an important step along that path."

The 58th annual edition of the TOP500 saw little change in the Top10. The Microsoft Azure system called Voyager-EUS2 was the only machine to shake up the top spots, claiming No. 10. Based on an AMD EPYC processor with 48 cores and 2.45GHz working together with an NVIDIA A100 GPU and 80 GB of memory, Voyager-EUS2 also utilizes a Mellanox HDR Infiniband for data transfer.

While there were no other changes to the positions of the systems in the Top10, Perlmutter at NERSC improved its performance to 70.9 Pflop/s. Housed at the Lawrence Berkeley National Laboratory, Perlmutter's increased performance couldn't move it from its previously held No. 5 spot.

Today, AMD announced its continued momentum and collaboration with Microsoft Azure, who is offering the 3rd Gen AMD EPYC processor in the latest generation of Dasv5 and Easv5 Azure Virtual Machines (VMs). Azure is also introducing new confidential VMs, DCasv5 and ECasv5, which use the latest advanced security features available in 3rd Gen EPYC processors, including Secure Encrypted Virtualization-Secure Nested Paging (SEV-SNP).

The new Azure confidential VMs, DCasv5 and ECasv5, the first EPYC processor-based confidential VMs at Azure and the first confidential VMs to use SEV-SNP, will enable customers to have the data in their security focused applications encrypted in use, in transit and at rest. The updated Dasv5 VMs, optimized for general purpose workloads, and the Easv5 VMs, optimized for memory-based workloads, deliver better price-performance for most general purpose and memory intensive workloads compared to prior EPYC processor-based Microsoft Azure VMs.

NVIDIA (NASDAQ: NVDA) today reported record revenue for the second quarter ended August 1, 2021, of $6.51 billion, up 68 percent from a year earlier and up 15 percent from the previous quarter, with record revenue from the company's Gaming, Data Center and Professional Visualization platforms. GAAP earnings per diluted share for the quarter were $0.94, up 276 percent from a year ago and up 24 percent from the previous quarter. Non-GAAP earnings per diluted share were $1.04, up 89 percent from a year ago and up 14 percent from the previous quarter.

"NVIDIA's pioneering work in accelerated computing continues to advance graphics, scientific computing and AI," said Jensen Huang, founder and CEO of NVIDIA. "Enabled by the NVIDIA platform, developers are creating the most impactful technologies of our time - from natural language understanding and recommender systems, to autonomous vehicles and logistic centers, to digital biology and climate science, to metaverse worlds that obey the laws of physics.

While the server industry transitions to the latest generation of processors based on the x86 platform, the Intel Ice Lake and AMD Milan CPUs entered mass production earlier this year and were shipped to certain customers, such as North American CSPs and telecommunication companies, at a low volume in 1Q21, according to TrendForce's latest investigations. These processors are expected to begin seeing widespread adoption in the server market in 3Q21. TrendForce believes that Ice Lake represents a step-up in computing performance from the previous generation due to its higher scalability and support for more memory channels. On the other hand, the new normal that emerged in the post-pandemic era is expected to drive clients in the server sector to partially migrate to the Ice Lake platform, whose share in the server market is expected to surpass 30% in 4Q21.

At this year's International Supercomputing 2021 digital event, AMD (NASDAQ: AMD) is showcasing momentum for its AMD EPYC processors and AMD Instinct accelerators across the High Performance Computing (HPC) industry. The company also outlined updates to the ROCm open software platform and introduced the AMD Instinct Education and Research (AIER) initiative. The latest Top500 list showcased the continued growth of AMD EPYC processors for HPC systems. AMD EPYC processors power nearly 5x more systems compared to the June 2020 list, and more than double the number of systems compared to November 2020. As well, AMD EPYC processors power half of the 58 new entries on the June 2021 list.

"High performance computing is critical to addressing the world's biggest and most important challenges," said Forrest Norrod, senior vice president and general manager, data center and embedded systems group, AMD. "With our AMD EPYC processor family and Instinct accelerators, AMD continues to be the partner of choice for HPC. We are committed to enabling the performance and capabilities needed to advance scientific discoveries, break the exascale barrier, and continue driving innovation."

NVIDIA today announced it is turbocharging the NVIDIA HGX AI supercomputing platform with new technologies that fuse AI with high performance computing, making supercomputing more useful to a growing number of industries.

To accelerate the new era of industrial AI and HPC, NVIDIA has added three key technologies to its HGX platform: the NVIDIA A100 80 GB PCIe GPU, NVIDIA NDR 400G InfiniBand networking, and NVIDIA Magnum IO GPUDirect Storage software. Together, they provide the extreme performance to enable industrial HPC innovation.

Thanks to their flexible pricing schemes and diverse service offerings, CSPs have been a direct, major driver of enterprise demand for cloud services, according to TrendForce's latest investigations. As such, the rise of CSPs have in turn brought about a gradual shift in the prevailing business model of server supply chains from sales of traditional branded servers (that is, server OEMs) to ODM Direct sales instead. Incidentally, the global public cloud market operates as an oligopoly dominated by North American companies including Microsoft Azure, Amazon Web Services (AWS), and Google Cloud Platform (GCP), which collectively possess an above-50% share in this market. More specifically, GCP and AWS are the most aggressive in their data center build-outs. Each of these two companies is expected to increase its server procurement by 25-30% YoY this year, followed closely by Azure.

AMD today announced its 3rd generation EPYC (7003 series) enterprise processors, codenamed "Milan." These processors combine up to 64 of the company's latest "Zen 3" CPU cores, with an updated I/O controller die, and promise significant performance uplifts and new security capabilities over the previous generation EPYC 7002 "Rome." The "Zen 3" CPU cores, AMD claims, introduce an IPC uplift of up to 19% over the previous generation, which when combined by generational increases in CPU clock speeds, bring about significant single-threaded performance increases. The processor also comes with large multi-threaded performance gains thanks to a redesigned CCD.

The new "Zen 3" CPU complex die (CCD) comes with a radical redesign in the arrangement of CPU cores, putting all eight CPU cores of the CCD in a single CCX, sharing a large 32 MB L3 cache. This the total amount of L3 cache addressable by a CPU core, and significantly reduces latencies for multi-threaded workloads. The "Milan" multi-chip module has up to eight such CCDs talking to a centralized server I/O controller die (sIOD) over the Infinity Fabric interconnect.

AAEON, an industry leader in Edge Computing solutions, announces the SRG-3352C Compact Edge IoT Gateway System. The SRG-3352C brings reliable, cost effective gateway operations with expandability and wireless communication support designed to quickly deploy edge networks in a variety of environments.
The SRG-3352C builds upon the features, durability and reliability of the SRG-3352 Edge IoT Gateway System with expanded support for more connections and wireless communications. All of this is packed into a compact form factor that makes deploying the SRG-3352C even easier, powering more flexible edge network deployments.

The SRG-3352C is powered by the Arm Cortex-A8 800 MHz RISC processor. This innovative processor reduces the energy requirements of the system, allowing for a more efficient system to help save electricity costs. While powerful enough to connect edge networks together, the low energy usage can help cities with achieving green energy goals, and even allow the system to operate on solar power or batteries. It also eliminates the need for dedicated heatsinks, allowing the system to operate in wider temperatures, from 0°C up to 60°C without loss in performance.

Hewlett Packard Enterprise (HPE) today announced it is accelerating space exploration and increasing self-sufficiency for astronauts by enabling real-time data processing with advanced commercial edge computing in space for the first time. Astronauts and space explorers aboard the International Space Station (ISS) will speed time-to-insight from months to minutes on various experiments in space, from processing medical imaging and DNA sequencing to unlocking key insights from volumes of remote sensors and satellites, using HPE's Spaceborne Computer-2 (SBC-2), an edge computing system.

Spaceborne Computer-2 is scheduled to launch into orbit on the 15th Northrop Grumman Resupply Mission to Space Station (NG-15) on February 20 and will be available for use on the International Space Station for the next 2-3 years. The NG-15 spacecraft has been named "SS. Katherine Johnson" in honor of Katherine Johnson, a famed Black, female NASA mathematician who was critical to the early success of the space program.