Is This NVIDIA’s Next Big Opportunity?
- However, the company’s data center business — which has Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) as clients — is putting both gaming and automotive to shame in terms of growth.Data from NVIDIA.
- As data centers handle both these data types, they will need upgraded GPUs to enhance computing speeds and control costs simultaneously.As it turns out, NVIDIA’s Tesla GPUs for the data center deliver on both counts — faster speed and lower costs.
- But, apart from the construction of new datacenters, NVIDIA will also benefit from the upgrades to the existing ones.Upgrades will drive GPU demandCloud service providers have started upgrading their existing data centers to meet the rise in data volumes and tackle complexity.
- Amazon Web Services used eight Tesla accelerators, with each of them being powered by a pair of GPUs.The NVIDIA GPUs were used to add a new virtual server, known as P2, to Amazon’s data center.
- This will increase the demand for NVIDIA’s GPUs as they will be used to accelerate computing power and capacity in data centers to enable IaaS growth.The Foolish takeawayThe data center market is going to get bigger in the long run and NVIDIA counts the biggest cloud service providers as its clients.
Image source: NVIDIA.
@evankirstel: Is This #NVIDIA’s Next Big Opportunity? on @madisondotcom #IoT #cloud
Gaming is NVIDIA’s (NASDAQ: NVDA) biggest revenue source while the automotive business is said to be its next big play. However, the company’s data center business — which has Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) as clients — is putting both gaming and automotive to shame in terms of growth.
The 205% year-over-year growth in NVIDIA’s data center revenue during the fourth quarter eclipsed both gaming and automotive, which reported “moderate” growth of 66% and 37%, respectively over the same time period. Data center is the company’s second-largest business, with over 13% of revenue, and it could continue to grow for two reasons: the deployment of more data centers and upgrades to the existing ones.
Nowadays, the type and volume of information that data centers process has become more complex than ever. The growing usage of 3D applications in virtualized workspace environments is creating the need for high-performance computing that is enabled by GPUs. Instead of deploying a 3D-graphics-enabled application on an individual workstation, enterprises are now using the data center to install the 3D apps so they can be accessed by users remotely.
The Internet of Things generates two categories of data. The first is the large data type that consists of images and videos generated by different electronic devices. The second is the passive or small data type that is generated by different sensors and low-energy devices powering the Internet of Things. As data centers handle both these data types, they will need upgraded GPUs to enhance computing speeds and control costs simultaneously.
As it turns out, NVIDIA’s Tesla GPUs for the data center deliver on both counts — faster speed and lower costs. These are capable of enhancing computing speeds by five times and reduce costs by 60%, according to Shanker Trivedi, the company’s VP of Enterprise Business. The advantages delivered by these GPUs have allowed the company to rack up an impressive clientele in datacenters, especially in high-performance computing.
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