CB-Insights-边缘计算的大公司-57正式版

WHATISCBINSIGHTS?CBInsightshelpstheworld’sleadingcompaniesmakesmartertechnologydecisionswithdata,notopinion.OurTechnologyInsightsPlatformprovidescompanieswithcomprehensivedata,expertinsightsandworkmanagementtoolstodrivegrowthandimproveoperationswithtechnology.CLICKHERETOSIGNUPFORAFREETRIALghtshelpsuscompressourtime-to-decisionwhengatheringandanalyzingdataandgettinganexternalviewonwhat'shappeninginthemarketsowecanquicklytakeaction.MerajMohammadVicePresident,VenturesGroup,ADPContents4OverviewWhynow?Amazon51

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3MicrosoftGoogleAppleFacebookWhat’snext?3SummaryoffindingsAdvancesinwirelessstandards—like5G—andtheexplosionofconnecteddevicesaredrivinginterestinedgecomputing,theprocessingofdataclosertoitssource.Thisemergingapproachtocomputinghasimplicationsforcloudproviders,devicemanufacturers,softwaremakers,andmore.Intricatelyinvolvedinthesetechnicalareas,Amazon,Microsoft,Google,Apple,andFacebookhaveinvestedinbuildingedgeinfrastructure,developingnewapplications,andimprovingdevicecapabilities.Thesecompaniesareaimingtoestablishfavorablepositioningforemergingtrendsassociatedwithedgecomputingandcaptureapieceofthe$500Bmarketopportunity.BigTechInEdgeComputing•

Amazon:Thee-commerce&cloudcomputingpowerhouseseekstomaintainitsdominanceincloudbyextendingitsinfrastructuretothenetworkedgeandrollingoutcapabilitiesthatsupportedgecomputingusecases(suchaspredictivemaintenance,devicemanagement,andmore.)Ithasalsoinvestedheavilyinemergingareasthatshouldbenefitfromedgecomputing,likeself-drivingcars.•

Microsoft:Theenterprisesoftwaregiantislookingtodeepenitsroleinthetelecommunicationsspacewhileextendingitspubliccloudinfrastructuretotheedgeofthenetworkandmeetingenterprisedemandsfordevicesecurityandmanagement.•

Google/Alphabet:Google’swide-ranginginitiativesincludecloudcapabilities,devices,andinvestmentsinemergingapplicationslikeaugmentedreality.ItsdataanalysisandAIcapabilitiescouldsetitapartfromthecompetitionasitapproachesedgecomputingopportunities.•

Apple:Withitsexpertiseindevices,Appleisoperatingattheveryedgeofthenetworkandlookingtoimprovethedataprocessingthatoccursthere.Thecompany’sinvestmentsinartificialintelligenceallowmorecomputingtotakeplaceondevicesratherthaninthecloud.•

Facebook:Thesocialmediagiantexpectsedgecomputingtosupportemergingapplicationslikevirtualandaugmentedreality,wherethecompanyhasinvestedheavily.Thesenewcommunicationmediumswillhelpthecompanykeepitsusersactiveandengagedonitsplatforms.4TECHGIANTSINEDGECOMPUTINGWhatisedgecomputing?5EdgecomputingistheprocessingofdataclosertowhereitisgeneratedCloudcomputingenablescompaniestostoreandprocessdata(amongothercomputingtasks)outsideoftheirownphysicalhardware,acrossanetworkofremoteservers.Fogcomputingreferstothenetworkconnectionsbetweenedgedevicesandthecloud,i.e.,theextensionofthecloudtotheedgeofanetwork.Edgecomputingiscomputationalprocessingdoneatornearthe“edge”ofanetwork,i.e.,atthedevicelevel.Edgecomputingstandstocomplementcloudcomputing.Onekeydifferencebetweenthetwoisthecentralizednatureofcloudcomputingandthedecentralizedorlocalnatureofedgecomputing.CBInsights6Edge’spotentialisattractingmediaattention•

Faster(orreal-time)dataprocessingandanalysis:Dataisprocessedclosertothesource,notinanexternaldatacenterorcloud,whichreduceslagtime.•

Lowercosts:Enterprisesspendlessondatamanagementsolutionsforlocaldevicesthanforcloudanddatacenternetworks.Newsmentionsof“edgecomputing,”2015—2020YTD(12/16/20)•

Lessnetworktraffic:WithanincreasingnumberofIoTdevices,datagenerationcontinuestoriseatrecordrates.Asaresult,networkbandwidthbecomesmorelimited,overwhelmingthecloudandleadingtoagreaterbottleneckofdata.•

Increasedapplicationefficiency:Withlowerlatencylevels,applicationscanoperatemoreefficientlyandatfasterspeeds.CBInsights7TECHGIANTSINEDGECOMPUTINGWhyNow?8AconvergenceoftechnicaltrendsiscreatingasizablemarketopportunityRolloutof5GProliferationofedgedevicesIn2020,therewere50billionIoTdevices—anumberonlyexpectedtogrow.Thenewwirelessstandardsupportsbandwidth-intensive,low-latencyapplications.EmergingtechnologiesNewtechnologieslikeautonomousvehicles,virtualreality,andtheinternetofthings(IoT)willbebestservicedbyanedgecomputingmodel.AnexplosionofdataBytheyear2025,an$500BEdgecomputingmarketestimated463exabytesworthofdatawillbecreatedperdayglobally—equivalenttoover200millionDVDsperday.CBInsights,NetworkWorld9EdgecouldhugelyimpactBigTech’sbusinesslinesEdgecomputingwillimpactnumerouscomponentsoftoday’scomputingmodelinwhichBigTechisentrenched.•

Cloud:Cloudprovidersofferthetoolstomanagedevicesandanalyzedata,butfacechallengessupportingnewlow-latencyapplications.•

Devices:Theincreasinglydiversedevicelandscape,withwearables,smartphones,smarthomeproducts,andmore,requiresanewcomputingmodel.•

Applications:Anedgecomputingmodelwillbestservemanyemergingapplicationsandusecases—likeautonomousdriving—thatrequirehighbandwidthandlowlatency.CBInsights10BigTechhasanincentivetoactThelast80yearshaveseenshiftsincomputingtrendsfromcentralizedmainframestodecentralizedpersonalcomputerstocentralized,hyperscaledatacenters(i.e.,cloudcomputing).Thesechangeshavemadetechnologycompanieshouseholdnames:firstIBM,thenMicrosoft,andfinallyAmazon.Edgecomputingwouldrepresentaswingbacktothedecentralizedapproachtocomputing,akintothePCsoftheearly2000s.Withsubstantialrevenueimplications,theriskofinactionbybigtechcompaniesissignificant.1950s–1970s:Themainframecomputerisintroduced,IBMdominatesthemarket1970s–2000s:Thepersonalcomputer(PC)isintroduced,withMicrosoft’sWindowsbecomingtheandprovideshostedcomputedominantoperatingsystemresources2000s–present:AmazoncreatesAmazonWebServicespursuingseveralapproachestodataprocessingattheedgePresent–??:Companiesare11BigTechhastheresourcestoinvest=$15B$138BQ32020cash&short-terminvestmentholdingsbycompany$132.6B$91B1.5B

ActiveDevices$68.7B$55.8B2020ThirdQuarterCash&ShortTermInvestments12TECHGIANTSINEDGECOMPUTINGAmazoninEdgeComputing13AMAZON’SCORECOMPETENCIESFOREDGECOMPUTINGAmazonhasinvestedfromtheclouddowntodevicesAmazonseekstoestablishafootholdinedgecomputingbyextendingthecapabilitiesofAmazonWebServices(AWS)andinvestinginemergingapplicationslikesmarthomesandautonomousdriving.Thecompanyhasalsoinvestedindevicesthatoperateonedge,likesmartspeakers,tablets,anddrones.CBInsights14AMAZON’SCORECOMPETENCIESFOREDGECOMPUTING:CLOUDCOMPUTINGAmazonleveragesitscloudcapabilitiesTheleaderbyrevenueinthepubliccloudspace,Amazonisturningtoitscloudservicestodifferentiateitselfontheedge.•

AWSIoTGreengrassmanagesconnecteddevicesandenablesthemtorunapplicationsofflinebyprovidingaccesstoserverlessfunctionsandDockercontainers.•

SageMakerNeohelpscompaniescreatemachinelearningalgorithmsinthecloudthatcanrunautonomouslyontheedge.•

AWSRoboMakerallowscompaniestodeployroboticapplicationsattheedge.Amazon15AMAZON’SCORECOMPETENCIESFOREDGECOMPUTING:EDGEINFRASTRUCTUREAmazonisextendingitscloudtotheedgeAWSLocalZonesprovidesclients—typicallylocatedindenselypopulatedareas—withdatacentersclosertotheiroperationstodeliverafaster,moreresponsiveexperiencetoend-users.AmazonhasalreadyrolledoutthisnewinfrastructuremodelinLosAngelesandcountsNetflixandLumaPicturesamongitsinitialcustomers.Wavelengthsupports5Gapplicationsbyusingtelecomproviders’infrastructuretoplaceAWSstorageandcomputeresourcesonthewirelessnetwork.Thefirstofthesetelecom-AWSarrangementsisinChicago,whereBethesdaSoftworksandtheNationalFootballLeagueareearlyadopters.Amazon,Amazon16AMAZON’SCORECOMPETENCIESFOREDGECOMPUTING:EDGEINFRASTRUCTURETelecomoperatorsarepartnersinanedgefutureTelecomprovidersareupgradingtheirinfrastructuretosupporttheemergingwirelessstandard5G.Partofthisupgradeprocessincludesthevirtualizationofnetworkinfrastructure,essentiallythereplacementofhardwareusedfornetworkfunctionswithsoftwarerunninginthecloud.Thistransitiontosoftwaremakestelecomprovidersvaluablepotentialcustomersforcloudproviders,aswellaspromisingpartnersfortheroll-outofnewcloud-basedapplications.AmazonhaspartneredwithseveraltelecomsaspartofitsWavelengthinitiativetobringcloudresourcestothenetwork’sedge.Amazon,

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Insights17AMAZON’SCORECOMPETENCIESFOREDGECOMPUTING:APPLICATIONSAmazon’sedgeinfrastructurewillsupportnewapplicationsEdgecomputingappliestonumerousemergingapplicationsthatrequireorcouldbenefitfromincreasedresponsiveness.Applicationslikegaming,autonomousdriving,andfactoryoperations,wherereal-timedecisionmakingiscritical,wouldbenefitfromcloserdataprocessing.Amazonseeksnotonlytosupportthislocaldataprocessingbutalsotoinvestintheemergingapplicationsexpectedtobenefitfromit.Amazon18“AWSWavelengthprovidesthesameAWS…thatthey’reusingtodayattheedgeofthe5Gnetwork.Whilesomeultra-low-latencyusecaseslikesmartcars,streaminggames,VR,andautonomousindustrialequipmentarewellunderstoodtoday,wecan’twaittoseehowbuildersuse5Gedgecomputingtodelighttheirmobileendusersandconnecteddevicecustomers”AndyJassy,AmazonWebServicesCEO19Source:AmazonAMAZON’SCORECOMPETENCIESFOREDGECOMPUTING:APPLICATIONSAbigbetonautonomousdrivingSelf-drivingvehiclescouldrelyonAmazon’scloudandedgeinfrastructuretosupportreal-timedecisionmakingandensureregularsoftwareupdates.TheemergingapplicationcouldalsobenefitAmazon’squicklygrowingdeliverybusiness.InJune2020,AmazonacquiredautonomousvehicledeveloperZoox

for$1.2B.ThecompanyalsopurchasedaminoritystakeinelectricvehiclecompanyRivian

in2020andparticipatedinself-drivingcarcompanyAurora’sSeriesBin2019.CB

Insights20AMAZON’SCORECOMPETENCIESFOREDGECOMPUTING:APPLICATIONSAmazonsetsitssightsonotheremergingareasOverthepastfewyears,Amazonhasinvestedinseveralareasexpectedtobenefitfromadvancesinedgecomputing.SmarthomeGamingDronesHomesarebecominganInSeptember2020,Amazonannounceditscloudgamingplatform,Luna.ThecompanyalsoownsthepopulargamestreamingserviceTwitch,whichitpurchasedin2014.AmazonhasfiledpatentsfornewdronedesignsandinAugust2020receivedapprovalfromtheFederalAviationAdministrationtodeliverpackagesviadrones.ecosystemofconnecteddevices,andAmazondoubleddowninthisareain2018withits$839MacquisitionofhomesecurityproviderRing.CB

Insights21WHERECOULDAMAZONGONEXT?Abrick-and-mortarcloudstrategyFromitsrootsasanonlinemarketplace,Amazonhasquicklyexpandeditsbrick-and-mortarpresencebybuildingAmazonstoresandacquiringthegrocerychainWholeFoods.Thecompanynowoperatesmorethan500physicalretaillocationsaswellas100+distributioncenters.ItspartnershipswithtelecommunicationsprovidersfurtherextenditsphysicalpresenceacrosstheUnitedStatesandbeyond.Thisbrick-and-mortarnetworkcouldserveastheinfrastructureforadistributedcomputingmodelthatservicesitsownedgeneeds(suchasdronesandautonomousvehicles),aswellastheneedsofitsclients.Walmart,Amazon’soften-citedretailrival,hasreportedlyexploredleveragingitsmuchlargerstorepresenceforedgecomputingpurposes.22CNET,

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JournalTECHGIANTSINEDGECOMPUTINGMicrosoftinEdgeComputing23MICROSOFT’SCORECOMPETENCIESFOREDGECOMPUTINGMicrosoftisbettingbigonedgecomputingIn2018,Microsoftannounceditwouldinvest$5BoverthenextfouryearsinIoTandIntelligentEdge.TheseinvestmentslargelycenteronextendingMicrosoft’sAzurecloudservicesandcapabilitiestotheedgeofthenetwork.Beyondedgeinfrastructureandthecloud,Microsoft’sdevices,virtual/augmentedreality,andgamingbusinessescouldbenefitfromanedgecomputingmodel.Microsoft24MICROSOFT’SCORECOMPETENCIESFOREDGECOMPUTING:CLOUDCOMPUTINGPubliccloudsupportsedgeusecasesMicrosoft’sAzurecloudplatformdeliversservicesfordevices(industrialassets,drones,etc.)attheedgeofthenetwork.•

AzureSphere:Securesedgedevicesandmonitorstheiractivity.InJune2020,MicrosoftboostedtheseedgesecuritycapabilitieswithitsacquisitionofIoTsecurityproviderCyberX.•

DigitalTwins:Createsadigitalmodelofreal-worldenvironments(e.g.,devices,processes,people)totestandpredictconnecteduse-cases.•

IoTHub:Managesconnecteddevicesandtheircommunicationswiththecloud.Microsoft25MICROSOFT’SCORECOMPETENCIESFOREDGECOMPUTING:EDGEINFRASTRUCTUREMicrosoftrollsoutthreeedgecomputingmodels1.AzureEdgeZonesaremicrodatacentersincitiesthatwillsupportendusersrunninglow-latencyandhigh-bandwidthapplicationssuchasgamingormediaproduction.2.AzureEdgeZonesplaceAzurecapabilitiesonthe5Ginfrastructureoftelecomproviders.Thisproximitytothewirelessnetworkwillenableapplicationsonmobiledevicestorunwithlowlatency.3.AzurePrivateEdgeZonesbringAzure’sIoTanddevicesecurityofferingson-premises.Thismanagedservicetargetscompaniesrunningprivatewirelessnetworkstosupportapplicationsrequiringhighlevelsofreliabilityandlowlatency,suchasroboticsorassistedsurgery.Microsoft26MICROSOFT’SCORECOMPETENCIESFOREDGECOMPUTING:EDGEINFRASTRUCTURETelecomprovidershelpexpandMicrosoft’sreachMicrosofthasenteredtheworldoftelecommunicationsinearnest:•

Acquiredthecloud-nativenetworkingproviderAffirmedNetworks

inMarch2020for$1.4B.•

Acquiredvirtualizednetworksoftware-makerMetaswitch

NetworksinMay2020.•

Partnerswithleadingtelecomproviders,includingTelefonicaandVerizon.TheseacquiredcapabilitiesandbusinessrelationshipsshouldhelpMicrosoftextenditscloudcapabilitiestotheedge.Microsoft,CBInsights27“Butatthesametime,thearchitectureoftheclouditselfisgoingtobe—havethecloudandtheedge…That'swhyevenwhatwearedoingonouredgecompute,whatwedidwithAffirmedNetworks,whatwedidwitheventhelaunchofAzureEdgeZones,allspeaksto,Ithink,whatisgoingtobethesecularinfrastructurearchitecturegoingforward.”SatyaNadella,CEOofMicrosoft28Source:CBInsightsMICROSOFT’SCORECOMPETENCIESFOREDGECOMPUTING:APPLICATIONSMicrosoftpositionsforedgecomputingtailwindsFrominvestmentsingamingtoaugmentedandvirtualrealityoverthepastfewyears,Microsoftisexpandingitsfootholdinareaswithedgecomputingtailwinds.GamingAugmented/virtualrealityRoboticsInSeptember2020,Microsoftreleaseditscloudgamingplatform,xCloud.Knownforitsgamingconsole,Xbox,Microsoftmayhaveanadvantageinthehotlycontestedmarket.Microsoftupdateditschiefaugmentedrealityproduct,theHoloLens,in2019.Thisheadsettargetstheenterprisetosupportusecasesliketrainingandsituationalawareness.MicrosoftisaninvestorinandpartnerwithSarcosRobotics,adeveloperofroboticsystems.Thecompanyalsolaunchedaplatformforcreatingautonomoussystemsin2019.CBInsights,Microsoft,SarcosRobotics29WHERECOULDMICROSOFTGONEXT?AmoveintonetworkingandtelecommunicationsComponentsoftheAzureforOperatorsCloudplatformMicrosoftmadeitsinterestinthenetworkingandtelecommunicationsspaceclearwithitsacquisitionsofAffirmedNetworksandMetaswitchearlierthisyear.Theopportunemovescomeasatechnicalshifttosoftware-definednetworkingmakestheindustrymorehospitabletoMicrosoft,anenterprisesoftwarecompany.Further,amidconcernsofChinesedominancein5Gandcriticaltelecommunicationsinfrastructure,US-basedMicrosoftmayreceiveawarmwelcomeinanindustrydominatedbyjustafewfirms.CustomersofAffirmedNetworksAsforitstractioninthespace,Microsoftcitesthat200operatorshavealreadyuseditsExpressRouteservicetolinkcorporatenetworkstoAzureservices.Microsoft30TECHGIANTSINEDGECOMPUTINGGoogleinEdgeComputing31GOOGLE’SCORECOMPETENCIESFOREDGECOMPUTINGGoogle’sopportunityinedgespansmultiplefrontsTheedgecomputingopportunityforGooglewillimpactthetechgiantonseveralfronts—mostnotably,itscloudplatformandhardwareportfolio.Topositionitselfforthesechanges,thecompanyhasdevelopedrelationshipswithtelecomproviders,expandeditscloudcapabilitiestotheedge,andinvestedindeviceslikeactivitytrackersandsmartglasses.CBInsights32GOOGLE’SCORECOMPETENCIESFOREDGECOMPUTING:CLOUDCOMPUTINGGooglebringsAIfromthecloudtotheedgeGooglehassoughttodifferentiateitscloudcomputingcapabilitieswithinnovationinAIanddataanalysis.Itnowlookstobringthesecapabilitiestotheedge.AcrucialcomponentofthisinitiativeistheEdgeTPU,acustomcomputerchipdesignedtorunalgorithmsatthedevicelevel.ThischipallowscompaniestotrainalgorithmsinGoogle’scloudandrunthemattheedge,supportingusecasesfrompredictivemaintenancetoanomalydetectiontorobotics.ThroughitsIoTCoreoffering,Googleprovidesdevicemanagementandsecuritycapabilitieswhileconnectingdevicestocloud-basedanalyticstools(CloudDataflow,BigQuery,etc.).Google33GOOGLE’SCORECOMPETENCIESFOREDGECOMPUTING:EDGEINFRASTRUCTUREGooglepartnerswithtelecomprovidersGoogleisplacingitscloudcapabilitiesontheburgeoning5Gnetworkthroughaseriesofpartnershipswithtelecomproviders,includingAT&TandTelefonica.WhilethecompanyhasnotannouncedaninvestmentinlocalzoneslikeAWSLocalZonesorAzureEdgeZones,itstelecompartnershipswillexpanditsexistinginfrastructureofedgepointsofpresence(PoPs)andedgenodes.Theseoutpostscanbeusedtodelivercachedcontentand,insomeinstances,servicessuchasGoogleSearch.InMarch2020,thecompanyannouncedAnthosforTelecom,acloudapplicationplatformfortelecomproviderstorunatthenetwork’sedge.CBInsights,Google34“Organizationswithedgepresences—likeretailersoperatingbrick-and-mortarstores,transportationcompaniesmanagingfleetsofvehicles,ormanufacturersrelyingonIoT-enabledequipmentonshopfloors—haveanopportunitytomodernizeprocessesanddelivernewexperienceswithcloudcapabilitiesattheedge.”AmolPhadke,ManagingDirectoratGoogleCloud35Source:GoogleGOOGLE’SCORECOMPETENCIESFOREDGECOMPUTING:APPLICATIONSGooglebetsonlow-latencyapplicationsThroughacquisitions,anactiveventurecapitalarm(GoogleVentures),andamoonshotprogram,Googlehasmadebetsinseveralemergingareasthatcouldbenefitfromedgecomputing.AutonomousdrivingAugmented/VirtualrealityGamingGooglesubsidiaryWaymo

tookoutsideinvestment($3.2B)forthefirsttimein2020toadvanceitsself-drivingtechnology.EarlytomarketwithitsGoogleGlassproductin2014,thecompanyhasiteratedontheproductandfocusedonsellingintotheenterprisespace.Googlelauncheditscloud-basedgamingplatform,Stadia,inNovember2019.Supportingitseffortsinthisareawasa2019acquisitionofgamedeveloper,TyphoonStudios.Google,CBInsights36GOOGLE’SCORECOMPETENCIESFOREDGECOMPUTING:DEVICESGoogletakesalargerroleinconnecteddevicesGoogle’shardwareinterestsincludeaugmentedandvirtualrealitydevices(smartglasses),smartwatches(Fitbit),andsmarthomeproducts(GoogleHome).Thesedevices,runningapplicationseitheratthedevicelevelorontheedgecloud,areintegralcomponentsoftheedgecomputingmodelforgatheringandprocessingdata.Tostrengthenitshardwarechops,Googlehasacquiredseveralcompaniesinthepastfewyears:•In2020,GooglepurchasedARheadwearcompanyNorth,whichcouldboostitsGoogleGlassproductthatcontinuestosearchforproduct-marketfit.••In2019,GoogleacquiredfitnesswearablecompanyFitbit

for$2.1B.In2018,Googleclosedits$1.1BpurchaseofaportionofHTC’ssmartphonebusiness.CBInsights37WHERECOULDGOOGLEGONEXT?GoogletargetsenterpriseopportunitiesinspecificindustriesCompaniesseekingtodigitalizeoperationsandleverageemerging,low-latency,ordevice-centricapplicationswilldrivetheadoptionofedgecomputing.Google’sfootprintintheenterprisespaceissmallincomparisontoitsconsumerbusinesses.However,withitsGoogleCloudPlatform,ithasmadeinroads,especiallyrelatedtohelpingcompaniesmanageandanalyzedata.Edgecomputingprovidesameansforgainingtractionintheenterprisemarket–GooglecanhelpcompaniesrunAIontheedgeandmakesenseofubiquitousdevicedata.Withitstrovesofdataandrelianceonmedicaldevices,thehealthcareindustryrepresentsoneareaofpromiseforGoogle.CBInsights38TECHGIANTSINHEALTHCAREAppleinEdgeComputing39APPLE’SCORECOMPETENCIESFOREDGECOMPUTINGAppletakesadevice-centricapproachtotheedgeTakingadvantageofrecentinnovationsinbatteryandsemiconductortechnology,Applesupportsmorebandwidth-intensiveprocesseslocallyonitsdevices.InthecaseofAI,thistypicallyinvolvesinference,ortheexecutionofalgorithmsonthedevice,whilethemoredata-andpower-intensiveprocessesofalgorithmtrainingoccurinthecloud.CBInsights40APPLE’SCORECOMPETENCIESFOREDGECOMPUTING:DEVICESAppleseeslocalAIasakeydifferentiatorLikelylookingtobringmoreAIcapabilitiestoitsdevices,AppleacquiredAIchipmakerXnor.ai

for$200MinJanuary2020.Xnor.aisimplifiesAIalgorithmssuchasimagerecognitionsothattheyrequirelessbatteryandprocessingpower,makingthemeasiertorunondeviceslikesmartphones.TheacquisitionofXnor.aiispartofApple’sbroaderstrategytoestablishmoreownershipoverthecomponentswithinitsdevices.In2019,ApplereleaseditsA13chipwitha“neuralengine”tosupportmachinelearningtasks.InJune2020,itannounceditwoulduseitscustomchipsforMacBooks—amoveawayfromitsformersupplier,Intel.CBInsights41APPLE’SCORECOMPETENCIESFOREDGECOMPUTING:DEVICESApple’sinvestmentsreflecttheimportanceofAIMorethanathirdofApple’sinvestmentssince2015havebeeninAIcompanies.ThisinvestmentstrategyhasallowedthecompanytosupportlocalAIapplicationslikeSiri,thevirtualassistantrunningonitsdevices.LocalAIsupportsmorethanSiri,however.TheiPhone’scameraandapplicationsliketheNewsapporAppleMapsalsobenefitfromAIrunningattheedge.InMarch2019,forexample,ApplepurchasedAIcompanyLaserlike,whichhelpssurfacepersonalizednewscontentforusersbasedontheirviewinghistory.OtherAppledeviceslikeAirPods,thecompany’swirelessheadphones,couldimplementAIontheedgetobetterfilternoiseandimprovesoundquality.CBInsights42“We'veembeddedmachinelearningdirectlyintothesiliconwithourA12Bionicchip...italsoenablesprocessingofdataandtransactionsdirectlyonthedevice.ThismeansiPhonescanrecognizepatterns,makepredictions,andlearnfromexperience.”TimCook,AppleCEO43Source:CBInsightsAPPLE’SCORECOMPETENCIESFOREDGECOMPUTING:APPLICATIONSApplebetsonareasdependentonlowlatencyWithmorethan60acquisitionssince2015,Applehasattimesexpandedbeyonditsdevice-centricnaturetonewareaslikeautonomousdrivingandgaming.AutonomousdrivingAugmented/VirtualrealityGamingApplelauncheditssubscriptiongamingplatform,AppleArcade,inSeptember2019.TheofferingcompeteswiththosefromcloudgiantslikeMicrosoftandGoogle.Applepurchasedself-drivingcarstartupDrive.ai

inJune2019andhaspouredresourcesintoProjectTitan,ateamtaskedwithdevelopingautonomousvehicletech,foryears.InApril2020,AppleacquiredvirtualrealitydeveloperNextVR

for$100M.ApplehasalsofileddozensofpatentsforARandVRrelatedtechnology.Apple,CBInsights44WHERECOULDAPPLEGONEXT?AverticalapproachtoanAIfutureApple’srecentsplitwithIntel’shighlightsitsinterestindesigningitsdevicesfromthesiliconupward.Withgreatercontroloverdeviceinputs,Applecanmakeimprovementsinbattery,memory,andprocessingcapacity,whichwillenablemoredataprocessingtooccuratthedevicelevel.Apple’slatestA14chip(launchedinSeptember2020)offerscapabilitieslikeimagerecognitionandnaturallanguageprocessingwithitsnewNeuralEngine,CPUmachi