Keshawa Perera

Cloud Tech Quarterly Report Q2 24

Cloud Tech Q2 2024 hero

Cloud Tech (Q2 2024): Funding rebounds amid IBM’s HashiCorp and RHEL AI plays

Building future-ready applications in the cloud

Cloud-native Tech

<div>
 <ul>
 <li>
 
 Funding rebounded, driven by edge computing. Cloud optimization tools made a comeback
 
 </li>
 <li>
 
 IBM expanded cloud capabilities with HashiCorp acquisition
 
 </li>
 <li>
 
 Red Hat launched RHEL AI for open-source AI, while the edge computing sector saw numerous AI chip releases
 
 </li>
 <li>
 
 Edge AI ecosystem strengthened through partnerships aimed at GenAI deployment
 
 </li>
 </ul>
 
 
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 Funding
 
 <ul>
 <li>
 
 Edge Computing mega rounds stood out: 
 Cloud Tech funding reached its highest in the past three years, raising USD 3.7 billion across 19 funding rounds (+4x QoQ and +1.5x YoY). Edge Computing accounted for ~82% of the total raised, led by 
 <a href="https://sp-edge.com/companies/51144">
 EdgeConneX
 </a>
 &rsquo;s (USD 1.9 billion) and 
 <a href="https://sp-edge.com/updates/28498">
 DataBank
 </a>
 &rsquo;s (USD 725 million) large-debt rounds to expand global data center capacity. Other Edge Computing startups 
 <a href="https://sp-edge.com/updates/29959">
 Yondr
 </a>
 , 
 <a href="https://sp-edge.com/updates/28115">
 Hailo
 </a>
 , and 
 <a href="https://sp-edge.com/updates/29003">
 Blaize
 </a>
 also raised USD 100+ million each, with a notable shift towards growth-stage rounds. Funding in Cloud-native Tech, Serverless Computing, and Cloud Optimization Tools saw significant gains, with Cloud Optimization Tools experiencing an exceptional 45x YoY growth.
 
 </li>
 </ul>
 
 Product updates
 
 <ul>
 <li>
 
 Red Hat launched RHEL AI:
 Red Hat Enterprise Linux AI (
 <a href="https://sp-edge.com/updates/29181">
 RHEL AI
 </a>
 ) enables the efficient, flexible deployment of AI models at the edge by providing optimized container images, hybrid cloud capabilities, and seamless integration with enterprise IT operations. It simplifies scaling AI across distributed edge environments, accelerating the adoption of AI-powered applications in resource-constrained, distributed settings.
 
 </li>
 <li>
 
 Focus on edge AI hardware innovation: 
 The edge AI landscape witnessed a flurry of new chip releases, with 
 <a href="https://sp-edge.com/updates/29739">
 EdgeCortix
 </a>
 , 
 <a href="https://sp-edge.com/updates/28101">
 Hailo
 </a>
 , and 
 <a href="https://sp-edge.com/updates/30099">
 Kneron
 </a>
 introducing advanced edge AI accelerators and servers. Incumbents like Intel and AMD also made significant advancements, with Intel launching edge-optimized 
 <a href="https://sp-edge.com/updates/28301">
 CPUs, GPUs, 
 </a>
 <a href="https://sp-edge.com/updates/28301">
 and
 </a>
 <a href="https://sp-edge.com/updates/28301">
 FPGAs
 </a>
 and AMD unveiling its 
 <a href="https://sp-edge.com/updates/28366">
 Versal adaptive 
 </a>
 <a href="https://sp-edge.com/updates/28366">
 SoC
 </a>
 . Alongside these hardware innovations, we noted numerous product announcements focused on enhancing Kubernetes adoption and capabilities in Cloud-native Tech.
 
 </li>
 </ul>
 
 Partnerships
 
 <ul>
 <li>
 
 Simplifying AI deployments and enhancing edge management:
 Collaboration between incumbents and disruptors aimed to simplify and enhance AI deployments and edge management. Noteworthy partnerships included 
 <a href="https://sp-edge.com/updates/29002">
 Vapor IO and VAST Data
 </a>
 integrating edge and core AI systems and Red Hat with 
 <a href="https://sp-edge.com/updates/29309">
 Intel
 </a>
 , 
 <a href="https://sp-edge.com/updates/29311">
 Cloudera
 </a>
 , 
 <a href="https://sp-edge.com/updates/29347">
 Veeam
 </a>
 , and Nutanix to bolster AI, security, and virtualization. Additionally, 
 <a href="https://sp-edge.com/updates/29818">
 Dell partnered with Nvidia
 </a>
 to accelerate edge AI adoption.
 
 </li>
 </ul>
 
 M&amp;A
 
 <ul>
 <li>
 
 IBM acquired HashiCorp: 
 IBM's acquisition of HashiCorp for 
 <a href="https://sp-edge.com/updates/28730">
 USD 6.4 billion
 </a>
 was a strategic move to enhance its hybrid cloud and AI capabilities. By integrating HashiCorp's tools into its Red Hat OpenShift platform, IBM plans to offer customers greater flexibility in cloud deployments. The combination of IBM's expertise (including 
 <a href="https://sp-edge.com/companies/6078">
 Red Hat
 </a>
 ) and HashiCorp's security and management solutions is expected to create a holistic platform tailored for the AI era, strengthening IBM's position in the rapidly evolving cloud and AI market.
 
 </li>
 <li>
 
 Cloud-native Tech and Serverless Computing dominate activity: 
 We tracked nine other M&amp;A deals, primarily in Cloud-native Tech and Serverless Computing. Harness bolstered its product portfolio by 
 <a href="https://sp-edge.com/updates/29964">
 acquiring Split Software
 </a>
 , further strengthening its acquisition-driven growth strategy. Other notable transactions included EQT's 
 <a href="https://sp-edge.com/updates/29112">
 purchase of WSO2
 </a>
 , Timescale's 
 <a href="https://www.prnewswire.com/news-releases/timescale-acquires-popsql-to-bring-a-modern-collaborative-sql-gui-to-postgresql-developers-302108558.html">
 acquisition of 
 </a>
 <a href="https://www.prnewswire.com/news-releases/timescale-acquires-popsql-to-bring-a-modern-collaborative-sql-gui-to-postgresql-developers-302108558.html">
 PopSQL
 </a>
 , and SUSE's 
 <a href="https://sp-edge.com/updates/30568">
 buyout of 
 </a>
 <a href="https://sp-edge.com/updates/30568">
 StackState
 </a>
 . 
 
 </li>
 </ul>
 
 O
 utlook
 
 <ul>
 <li>
 
 As the cloud and Edge Computing industries continue to evolve, several critical developments are shaping the landscape for GenAI adoption. Key players like Red Hat, SUSE, NVIDIA, AMD, and Intel have unveiled innovative products and platforms to enable the deployment of GenAI models across hybrid cloud and edge environments.
 
 </li>
 <li>
 
 Red Hat's RHEL AI and OpenShift AI, for instance, aim to make open-source AI more accessible and enterprise-ready, while partnerships between companies like VaporIO, Dell, and Red Hat are positioning them to capitalize on the GenAI revolution. Additionally, cloud optimization tools are increasingly incorporating AI-based features, such as Red Hat's &quot;Lightspeed&quot; and 
 <a href="https://sp-edge.com/companies/849470">
 CAST AI
 </a>
 's AI Advisor, to enhance cloud resource management and governance. 
 
 </li>
 <li>
 
 These developments suggest a growing focus on making GenAI more scalable, cost-effective, and user-friendly across diverse cloud and edge computing setups, potentially removing key bottlenecks.
 
 </li>
 </ul>
 
 
</div>

Cloud Tech (Q2 2024): Funding rebounds amid IBM’s HashiCorp and RHEL AI plays

<div>
 <ul>
 <li>
 
 Cloud Tech continues to play a critical role in propelling the GenAI revolution
 
 </li>
 <li>
 
 Funding remained sluggish despite Databank&rsquo;s mega round and a resurgence in Serverless computing
 
 </li>
 <li>
 
 Collaborations in edge computing emerged to facilitate AI workloads
 
 </li>
 </ul>
 
 
</div>

<div>
 
 
 <ul>
 <li>
 
 Cloud tech continues to play a critical role in propelling the GenAI revolution
 
 </li>
 <li>
 
 Funding remained sluggish despite Databank&rsquo;s mega round and a resurgence in funds raised by serverless computing
 
 </li>
 <li>
 
 Collaborations in edge computing emerged to facilitate AI workloads
 
 </li>
 </ul>
 
 
</div>

Cloud Tech (Q1 2024): Powering the GenAI revolution

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 <ul>
 <li>
 
 GenAI-based product innovations and partnerships drove the Cloud Tech industries in Q4 2023
 
 </li>
 <li>
 
 Cloud Tech industries, excluding Serverless Computing, saw a funding rebound in Q4 2023
 
 </li>
 <li>
 
 Broadcom wrapped up the VMware acquisition in an eventful quarter for Cloud Tech M&amp;A
 
 
 
 </li>
 </ul>
 
 
</div>

Cloud Tech (Q4 2023): Funding rebounds amidst GenAI integration drive

<div>
 <ul>
 <li>
 
 Composable enterprise revolves around the need for agility and flexibility
 
 </li>
 <li>
 
 Composable infrastructure treats IT resources like building blocks that can be assembled, disassembled, and reassembled
 
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 <li>
 
 It is well suited for enterprises that need to be dynamic while maintaining some standardization in their processes
 
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 </ul>
 
 
</div>

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