Technology
Tuesday, April 9th, 2024 2:01 pm EDT
Key Points
- Google aims to enhance cloud computing affordability with a custom-built Arm-based server chip, set to launch in 2024, marking a catch-up effort against rivals Amazon and Microsoft.
- Despite deriving the majority of revenue from advertising, Google’s cloud segment is rapidly growing, representing nearly 11% of company revenue and holding 7.5% of the cloud infrastructure market in 2022, while Amazon and Microsoft collectively control around 62%.
- The introduction of the Axion chip promises improved energy efficiency, with 60% more efficiency than x86-based VMs, and 30% better performance than existing Arm-based virtual machines, potentially leading to broader industry adoption and lower carbon emissions.
Google aims to revolutionize cloud computing affordability with a custom-built Arm-based server chip, unveiled at its Cloud Next conference in Las Vegas. Set to debut later in 2024, this move marks Google’s endeavor to close the gap with rivals like Amazon and Microsoft, long proponents of Arm-based strategies in the cloud infrastructure market. While advertising still dominates Alphabet’s revenue stream, cloud services are rapidly expanding, constituting nearly 11% of company revenue and boasting profitability within the segment. Despite Google’s 7.5% share in the cloud infrastructure market in 2022, Amazon and Microsoft collectively command around 62%, according to Gartner estimates. Amazon Web Services initiated the trend with its Graviton Arm chip in 2018, a move followed by Alibaba and Microsoft in subsequent years.
Although Google previously offered access to virtual machines powered by Ampere’s Arm-based chips, the forthcoming Axion instances promise enhanced capabilities. Notably, the transition to Arm-based architectures aligns with cost-saving objectives, as demonstrated by Amazon’s claim of up to 40% better price performance with Graviton compared to traditional x86 models. Google’s adoption of Arm chips extends beyond cloud services, with internal usage in running various applications, including YouTube advertising and database management tools. Axion’s energy efficiency, 60% more than x86-based VMs, underscores its potential in reducing carbon emissions, a significant consideration in environmentally conscious computing.
Moreover, Axion boasts superior performance, offering 30% better speed than existing Arm-based cloud VMs and 50% better performance than x86-based counterparts. Partnerships with companies like Datadog, Elastic, OpenX, and Snap signal industry support for Axion, positioning Google to compete more effectively in the cloud infrastructure market. By harnessing Arm’s architecture, Google aims to diversify its cloud offerings, ultimately enhancing its portfolio and solidifying its position in the competitive cloud computing landscape.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/09/google-announces-axion-arm-based-chips-for-energy-efficient-computing.html
