Something has been nagging my brain since WWDC: the repeated mentions of Linux during the keynote. What if Apple was hinting at something major in the pipeline?
For years the company attempted to enter the server market, think of the generations of Xserve from the G4 to Intel. Yet while the MacOS is an exquisite consumer/workstation operating system, it has failed to make a sizable entry into the enterprise market, a market that is now dominated by various flavors of Linux. Simply put, the enterprise runs on and demands Linux.
Now let us assume once the migration to Apple Silicon (AS) is complete, and Apple has an AS competitor to Intel’s Xeon that runs more efficiently and they can profit from products that sport it with a better margin than Xeon-based systems. Why stop just with future workstations like the MacPro or iMac Pro? Why not re-introduce a server branch of the Macintosh that not only runs MacOS Server, but also some Linux variant - and let it run natively instead of within a virtual environment?
It wouldn’t be the first time the company would market a product that runs a non-native operating system, remember the Apple Network Server (1996-7), which operated using IBMs AIX? Furthermore, why stop with just offering such a product to future clients when it could herald Apple’s mass entry into the enterprise cloud computer market?
Apple is the largest tech company around, yet currently it is missing from an enterprise market where the likes of Amazon AWS, Microsoft Azure, Google cloud and others are already massive players. In fact current Apple services like iCloud, the various app stores, Apple pay, ... etc. already operate on a non-native infrastructure (its estimated Apple leases Amazon AWS services for a 30 million dollar monthly fee), even though services amount to some 22% of the company’s revenue according to the last quarterly report. This figure is second only to the sales of the iPhone and is roughly three times that of iPad sales. Why should Apple limit its future only to the iPhone / iPad cash cows, along with its various computers that account for ~ 7% of end computer users?
Once Apple starts to use its own infrastructure for services, what will prevent the company from extending such services beyond the current consumer market into an even more lucrative enterprise market? Amazon has demonstrated what can be done with their AWS Graviton custom built processors (developed using ARM Neoverse 64-bit cores) for their own AWS services, which amount to ~ 14% of quarterly revenue.
Others who are working on super processors based on ARM technology include Fujitsu, the maker of the A64FX, the processor that powers Fugaku, the worlds fastest supercomputer. Also, recently Ampere announced a 128-core server processor to complement the 80-core Altra Max they launched earlier this year.
Apple potentially can develop a powerful competitor utilizing their own AS solutions to create scalable and megalithic systems that could be managed utilizing existing tools such as Macs, iPads and even iPhones. Apple will finally be able to augment an enterprise class of products and services to its existing consumer and professional products.
In short, the way I see it Apple didn’t invest billions of dollars to develop AS just to enhance the performance of laptops and desktops for the status quo users, but among the company’s longer term goals is the domination of the enterprise cloud computing market.
For years the company attempted to enter the server market, think of the generations of Xserve from the G4 to Intel. Yet while the MacOS is an exquisite consumer/workstation operating system, it has failed to make a sizable entry into the enterprise market, a market that is now dominated by various flavors of Linux. Simply put, the enterprise runs on and demands Linux.
Now let us assume once the migration to Apple Silicon (AS) is complete, and Apple has an AS competitor to Intel’s Xeon that runs more efficiently and they can profit from products that sport it with a better margin than Xeon-based systems. Why stop just with future workstations like the MacPro or iMac Pro? Why not re-introduce a server branch of the Macintosh that not only runs MacOS Server, but also some Linux variant - and let it run natively instead of within a virtual environment?
It wouldn’t be the first time the company would market a product that runs a non-native operating system, remember the Apple Network Server (1996-7), which operated using IBMs AIX? Furthermore, why stop with just offering such a product to future clients when it could herald Apple’s mass entry into the enterprise cloud computer market?
Apple is the largest tech company around, yet currently it is missing from an enterprise market where the likes of Amazon AWS, Microsoft Azure, Google cloud and others are already massive players. In fact current Apple services like iCloud, the various app stores, Apple pay, ... etc. already operate on a non-native infrastructure (its estimated Apple leases Amazon AWS services for a 30 million dollar monthly fee), even though services amount to some 22% of the company’s revenue according to the last quarterly report. This figure is second only to the sales of the iPhone and is roughly three times that of iPad sales. Why should Apple limit its future only to the iPhone / iPad cash cows, along with its various computers that account for ~ 7% of end computer users?
Once Apple starts to use its own infrastructure for services, what will prevent the company from extending such services beyond the current consumer market into an even more lucrative enterprise market? Amazon has demonstrated what can be done with their AWS Graviton custom built processors (developed using ARM Neoverse 64-bit cores) for their own AWS services, which amount to ~ 14% of quarterly revenue.
Others who are working on super processors based on ARM technology include Fujitsu, the maker of the A64FX, the processor that powers Fugaku, the worlds fastest supercomputer. Also, recently Ampere announced a 128-core server processor to complement the 80-core Altra Max they launched earlier this year.
Apple potentially can develop a powerful competitor utilizing their own AS solutions to create scalable and megalithic systems that could be managed utilizing existing tools such as Macs, iPads and even iPhones. Apple will finally be able to augment an enterprise class of products and services to its existing consumer and professional products.
In short, the way I see it Apple didn’t invest billions of dollars to develop AS just to enhance the performance of laptops and desktops for the status quo users, but among the company’s longer term goals is the domination of the enterprise cloud computing market.
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