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Why Cloud Vendors are Investing in New Sources of Compute Power

Writer: Service Ventures TeamService Ventures Team

In 2014, data was declared the “oil of the digital economy,” and the analogy remained accurate until recently. In 2020, however, data reflected oil only in the parallels to the 2020 oil glut — too much production, not enough consumption, and the wholesale commoditization of storage.


Today, the overriding demand is for data’s refined end product — business insight. And the most crucial link in the data insights supply chain is compute power. This makes the infrastructure of CPU cycles that enables distillation of value from mountains of data the new oil of the digital economy. And it’s driving some dramatic changes in the computing hardware ecosystem.


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