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Despite rising investments in artificial intelligence (AI) by today’s enterprises, trust in the insights delivered by AI can be a hit or a miss with the C-suite. Joe & I discuss in this article published in Harvard Business Review on what you can do to mitigate it.
Analyst Blog
Human-Centered Digital Transformation: Insights from Sridhar Vembu, Kathy Azeez-Narain & Seth Goldenberg – DisrupTV Episode 287
In DisrupTV Episode 287, hosts R “Ray” Wang and Vala Afshar dive into the intersection of technology, healthcare, and innovation with three visionary leaders:
Video
News Analysis: Big Tech Earnings in Q2 2022 Show Tech Rebound Among The MATANA Stocks
rwang0
Sun, 07/31/2022 - 13:54
Not All Big Tech Companies Are Equally Created
The MATANA stocks continue to do well despite a confluence of crises. MIcrosoft, Apple, Tesla, Alphabet, Nvidia, and Amazon, collectively showed that big tech, digital giants who:
Build the biggest networks
Disintermediate customer account control
Compete for data supremacy
Maximize digital monetization
Execute with a long term mindset
will continue to deliver on both growth and margins. These companies build data-driven digital networks (DDDNs) that serve as 100-year mulit-sided platforms.
Watch the latest video at foxbusiness.com
Source: Fox Business
Digital Giants Companies Continue To Show Outsized Growth
As the NASDAQ finds a floor in 11,000, and tech company forecasts for Q3 2022 reassure investors that growth is still in play, the digital giants have shown what's required to grow both market share and margins. Five trends emerged from this quarters tech earnings:
Not all digital advertising is created equal. Search based digital advertising is more bullet proof than social. Tech companies such as Facebook, Meta, Snap, and Twitter carry more risk while Amazon grew digital advertising revenue via commerce to 8.76B. Search based and commerce based digital advertising appear to be more recession proof
Enterprise cloud growth continues to surprise many. The tech industry is in the 3rd inning of a 9 inning market battle for cloud dominance. The public cloud providers have shown that even amidst intense competition, growth remains in high double digits. For example, Microsoft Azure grew 46%. Google Cloud grew revenue 47% and market leader Amazon grew 33% year over year for the quarter.
Successful digital giants build multi-sided platform businesses with data driven digital networks (DDDNs). Apple showed they were still able to grow iPhone sales and services sales. Apple added 160 million paid subscribers in the last quarter bringing its total to 860M paid subscribers for services. Services revenue grew 12% to $19.6 billion
One-trick ponies do not fare well in a recession. Apple, Amazon, Google , and Microsoft guidance show the dichotomy of multiple digital monetization models. Digital giants have diversified busines models and multiple monetization models. Successful digital giants monetize more than one area in ads, search, goods, services, subscriptions, and memberships. One trick pony monetization models of Meta (Facebok), and Netflix show lethargy in growth.
Enterprise tech companies remain undervalued. While much attention is focused on the mega cap digital giants, especially consumer oriented stocks, the mega cap enterprise stocks remain very attractive. Nvidia, Oracle, Adobe, Salesforce.com, Adobe, IBM, ServiceNow, Snowflake and Atlassian have positioned themselves for a lot of upside. Cybersecurity stocks such as Palo Alto Networks, Fortinet, and Crowdstrike remain recession proof as well.
The Bottom Line: MATANA Digital Giants Dominate Return To Tech Rotation
Move over FAANG, focus on the digital giants. During the world's biggest margin call (as my friend Keith Fitzgerald has proclaimed,) overall tech socks are mostly trading at 10 to 15% of historical lows. With a strong dollar, weak Europe, zero-COVID locked down China, and high interest rates, the quest for alpha will prove to be even harder. Those investors taking a longer term view of 12 to 18 months may want to buy at historic lows in the cycle. Given that the world has psyched themselves into a recession, few sectors will have the 20 to 40% growth rates of big tech and now may be a strategic time to buy back into the market.
Your POV
Do you think we hit the bottom for big tech? Are you diving back in or are you dollar cost averaging? Where do you think we will be during the recession?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your strategy efforts. Here’s how we can assist:
Developing your metaverse and digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2022 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
DisrupTV Episode 286: Leadership, Education, and the Future of Web3
In DisrupTV Episode 286, hosts R “Ray” Wang and Vala Afshar engage in a compelling discussion with four distinguished guests:
Video
Despite rising investments in artificial intelligence (AI) by today’s enterprises, trust in the insights delivered by AI can be a hit or a miss with the C-suite. Joe & I discuss in this article published in Harvard Business Review on what you can do to mitigate it.
Analyst Blog
Leading with Influence: Technology, Market Strategy & Digital Trailblazing – DisrupTV Episode 285
In DisrupTV Episode 285, hosts R “Ray” Wang and Vala Afshar engage with three leaders at the intersection of technology, markets, and digital transformation:
Video
rwang0 Thu, 06/30/2022 - 07:05
Customers Can Expect Physics-Based And Photo Realistic Digital Twins Today
On June 29th, 2022, a venerable digital industrial and one of the leaders in the metaverse, announced a collaboration to create an industrial metaverse. The goal - accelerate the adoption and mainstream use of industrial automation. At the core of this relationship is Siemens digital transformation platform, Siemens Xcelerator, and NVIDIA's Omniverse™, a 3D-design and collaboration platform. Siemens brings physics-based digital models to the partnership while NVIDIA brings its real-tie AI to increase decision velocity. As NVIDIA states, "Omniverse is a multi-GPU scalable virtual world engine that enables teams to connect 3D design and CAD applications for collaborative design workflows and allows users to build physically accurate virtual worlds for training, testing and operating AI agents such as robots and autonomous machines." NVIDIA boasts 25,000 companies using their metaverse platform.NVIDIA
Source: NVIDIA
As part of the partnership, Omniverse joins the Siemens Xcelerator open partner ecosystem. Roland Busch, CEO of Siemens's, emphasized how data integration from mechanical, electrical, software, plant systems, IoT, edge networks, will drive the convergence of IT and OT. Siemen's Xcelerator brings a curated data marketplace and common set of API's to the digital twin platform.
The NVIDIA Omniverse delivers a rich AI powered, virtual world engine. Coupled with NVIDIA.AI, Siemens has access to a powerful computational engine to render the rich digital representations in real-time. In addition, one of the benefits of the NVIDiA Omniverse is the adoption and standardization on PIxar's Universal Scene Description (USD) to create photo realistic simulations from an integrated circuit to an entire factory. NVIDIA's CEO, Jensen Huang, noted at the press conference at Siemens HQ, that these tools start you "down the journey of the industrial metaverse".
BMW Creates A Digital Twin With iFACTORY
During the press conference, Jensen Huang and Roland Busch joined Dr. Milan Nedeljković BMW Group AG’s Member of the Board of Management to share how BMW Group has progressed in their Digital Twin efforts.
Source: Siemens
Nedeljković shared how iFACTORY would enable the carmaker to make its factories more "lean, green, and digital". BMW sees a faster concept to market opportunity with their joint partnership with Siemens and NVIDIA. BMW expects the digital factory in Debrecen, Hungary to be up and running by 2025. Other customers in attendance include AT&T, GT Rail UK, and Merck Group,
The Bottom Line: Industrial Metaverse Will Accelerate Digital TTansformation
While most small and medium sized entities may not be able to afford the digital twins, companies that have NX or Tecnomatix platforms may gain access later in the year. The availability of digital twins will offer customers a highly immersive experiences and allow real time decisions in both the physical and digital worlds. Key benefits give customers the ability to:
Create creative environments for rich immersive simulations
Improve productivity for operations
Optimize processes across the product lifecycle
Access to real-time performance data
Rapid turnaround of industrial IoT solutions
Deliver greater decision velocity from data to decisions
With competitors such as Unity doubling down on its digital twins and other 3D engine companies and digital industrials in hot pursuit, customers and prospects can expect many more competitors and alternatives to arise in the delivery of data-driven digital networks (DDDNs) that will accelerate digital transformation
Your POV
Do you trust Siemens and NVIDIA to deliver an open platform for collaboration? Will you jump in to create your next digital twin? Does this announcement peak your interest in the metaverse economy?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your strategy efforts. Here’s how we can assist:
Developing your metaverse and digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2022 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
Offering Overview
Executive Summary
Resilient Leadership, Cloud Strategy & Human-Centered Success | DisrupTV Episode 284
In this episode of DisrupTV, hosts R “Ray” Wang and Vala Afshar sit down with an incredible lineup of thought leaders:
Video
We are thrilled and honored to announce the nominees for the 2023 Business Transformation 150 (BT150). The executives named on this year’s BT150 exemplified outstanding leadership and disruptive innovation over the past twelve months.
Analyst Blog
Digital Transformation Executives Recognized for Leadership Amid 2022’s Challenging Environment and Beyond SILICON VALLEY, Calif – June 21, 2022 – Today, Constellation Research announced its sixth annual Business Transformation 150 (BT150), an influential list of executives who are paving new paths for exponential digital transformation.
Press Release
Designing Resilient, People-Centered Tech: Insights from DisrupTV Episode 283
In DisrupTV Episode 283, hosts R “Ray” Wang and Vala Afshar are joined by three thought leaders who explore the intersection of technology, leadership, and humanity:
Video
The gap between Snowflake’s bold and innovative vision and its product and customer realities were on display at Snowflake Summit 2022.
Attend any big annual enterprise tech show, and you’re likely to hear about the vendor’s far-reaching vision for innovation. That’s why we’re shown those “forward-looking statements” disclaimer slides that nobody ever bothers to read.
Analyst Blog
Doug Henschen, VP & Principal Analyst, Constellation Research, sits with Lisa Martin & Dave Vellante, as they Kick-Off Day 1 at Snowflake Summit 2022 at the Caesar’s Forum Convention Center in Las Vegas, NV.
Video
ConstellationTV is here to bring you the latest in what is disruptive and reshaping business and technology. In every episode, you’ll hear from our fellow analysts, from leaders across our network of business transformation experts and influencers, as well as from cutting-edge vendors.
Video