Blog
Ubiquiti Networks June 2020 Quarter Review
Like many companies that sell campus networking gear, Ubiquiti Networks saw a slowdown in 2Q20. Its Enterprise-related revenues grew only 4% Y/Y and were down 16% Q/Q. We reviewed the public material from its disclosures this morning, plus as we do during each of the quarters, we are making checks… Read More »Blog
AWS Dominance continues (650 Group cloud report)
AWS (Amazon Web Services) grew nearly 30% Y/Y, remarkable results for a $10B a quarter business. 650 Group enterprise interviews indicate that IaaS is the preferred platform for new application development in the new-normal COVID-19 world. We do expect at some point enterprises will move some of these workloads back… Read More »Blog
Apple – Cloud Expansion, But Still Sub-Scale to the Other Four US Hyperscalers
Apple’s Cloud business remains locked between business models. Apple monetizes the Cloud portion via hardware sales with little direct revenue coming from Cloud services. While Apple announced a significant networking advancement with Nokia’s new data center switches, a substantial step in the right direction, we have yet to see a… Read More »Blog
Microsoft – Different Clouds to Different People
The only negative in Microsoft’s earnings in 2Q20 was Bing, expected based on consumer behavior trends. Azure continues to grow robustly as the company experiences supply constraints, just like everyone else in 2Q20. Over the next 4-6 quarters, we expect Project Jedi, the DoD’s Cloud project awarded in 2019 to… Read More »Blog
Facebook – Robust Search and Social Revenue Growth Counter trend to Overall Market
Facebook revenue grew robustly in 2Q20, and its CAPEX guidance remained consistent for 2020 compared to previous revisions in the last two quarterly results. Facebook’s results were counter trend to our expectations that many advertisers would pull back spending do to COVID-19 based on lack of supply (no need to… Read More »Blog
Google – Revenue Down Y/Y in Search While IaaS Shows Robust Growth
Google, the largest US Hyperscaler by revenue, reported Search and Social results that declined Y/Y for the first time while IaaS revenue grew nearly $1B Y/Y. We were a little surprised at Facebook’s robust growth compared to Google’s. Google’s results were in line with our overall expectations for Search and… Read More »Blog