—– Thinking Path ——-

30+ years back (April 1989 to be exact) was the the launch of the Pizza box form factor for servers (and eventually became 1U/2U nomenclature), but it was the simple mechanical form factor that was the beginning of the server building block, but it was also an approach to design we learnt from Andy Bechtolsheim and impinged in memory. As the Wikipedia article notes Andy, “specified that the motherboard would be the size of a sheet of paper and the SBus expansion cards would be the size of index cards, resulting in an extremely compact footprint“.

But there was more to that simple statement than just formfactor. The system design i.e. the main silicon components had to be designed to fit. That was his view and that is what I got my chops of think silicon in the context of the system. It was the beginning of the journey of more silicon integration (floating point, then cache, followed by MMU, then memory controller and IO controller – all within 3 years), better IO (Sbus when compared with the ATI bus in PCs). The outside in-thinking was carried forward and Andy continued to lead the industry in designing 2-way and 4-way SMP in small form factors which forced silicon integration, re-think interfaces, innovate in packaging with that outside in-thinking. We were in the ‘green zone’ of moore’s law. It was a full stack solution as we had control over the silicon, platform hardware, operating system and perhaps even user experience.

Silicon and thus hardware was increasingly getting more integrated while software started its journey down that decade to disintegrate – starting with domains in big SMPs (E10K) to Virtualization and the massively distributed systems that we have to come to accept as the modern mainframe. Reflecting, the core form factor and components inside that has not changed the last 30 years. More integration, smaller coherence domains, DRAM and processor followed moore’s law and IO evolved from Sbus -> PCI -> PCIe. EDA, MCAD and HPC codes loved Pizza (boxes)i.e it was then the favourite of the emerging high performance computing workloads. But within 10 years, it was no longer the recipe for just those esoteric EDA engineers or HPC folks. That evolved to grow big in the form factor of E10K to run the world’s enterprise and eventually a separate stream taking those Pizza boxes (Akamai was first before Google, Amazon and Azure) and step+repeat to build the cloud as we know today.

The ‘system’ in retrospect was fairly simple and it started from the bottom up simple form factor to build more complex and scalable platforms.

30 years of systems innovation has been focused on integrating more into silicon and using software to both scale and disintegrate that silicon (virtualization, distributed system), fueled in large part by the congruent evolution of ethernet and networking.

At hotchips this year, folks at Tesla took a different approach than what has not been done since 1989. Like then – took a form factor view and define some key attributes that had to be solved (cost of communication, memory/compute/IO ratios, latency across the span and many more). The form factor was an aisle in a data center.

Source: Beyond Compute

Dojo engineers re-imagined all layers of this hierarchy instead of being beholden to the current source of silicon and platforms ( because they can) into this.

Source: Beyond Compute

With that they got back to this.

Source: Beyond Compute

Distracting note: At the other end of this spectrum Apple with its M1 is pursuing a different full stack optimization.

While there has been tremendous innovations in ‘distributed systems’ the last 20 years as manifested by the cloud at Google, Amazon and Microsoft, the basic hardware building block and the hierarchies and the metrics for platform design followed the same rules of thumb as moore exponential was still in vogue.

Looking back it has been incremental in large part as new workloads like ML training and inferencing that demanded heterogeneity in compute. With that heterogeneity need, drives the need to deal with disaggregated memory, deal with differening ratios of compute, memory or IO based on model/ap, which did not appear until recently. There is another reason beyond workloads to look at this from new perspective. The same Moore curve is not ahead of us. So flattening the hierarchy in hardware and software, re-imaging the network/communication pathways, disaggregating the system, but ‘integrate’ at the platform software level.

Ganesh Venkataramanan calls out the following software stack opportunities – use new APIs for ML (Unix System call was the API between SW and hardware back then), think massively parallel, more compilers, less kernel, renewed focus on distributed compilers, reduced OS roles, flexible ratios of memory-compute and IO (we had fixed ratios for 30 years), disaggregate memory.

source: Beyond Compute

This time, we have to do the reverse. Instead of starting from the Pizza box to build the data center, work backwards from the data center system design to derive the new Pizza box or perhaps Pizza stack.

An at-scale disaggregated system has to be ‘shrunk’ to meet the demands of deployment everywhere not just as a training supercomputer, just like the Pizza box of 1989 evolved to run all workloads and eventually everywhere.

While Dojo might look like a training supercomputer for the select few, taking an approach to shrink from the data center to the pizza stack as the new basic building block could well expand this to spawn itself from the ML training data center to every enterprise workload past, present and future. Perhaps this is akin to building the Roadster then model S and Model 3 and perhaps throw in a cybertruck along the way!

The only way to do that is open up the platform for others to innovate or build the same with open standards, open source and the modern version of Open Systems. Both will happen. The era of the Open Cloud is opening. We have reached that inflection point like 1989.

We cannot predict what is possible in 10 years…but we can imagine and realize it.

Tesla’s Ganesh Venkataramanan shared the rationale behind their approach.

Moore (Intel) and Cycles of Re-inventions

A talk I gave (at Intel) a year and a half back on technology cycles, Moore’s law and cycles of how starting with semiconductors the fountain head of technology has shaped the cycles of re-inventions.

It took more than a year to post a more verbose version of the talk in this format. So its broken down to four parts, roughly co-inciding with the four different epochs. We have entered the fourth Epoch of modern computing era beginning with Intel, Schottky, Arthur Rock and the Fairchild 8.

Intel has been part of each transition in both good and not so good ways…

The PreMoore or Pre-Cambrian explosion of is here (More Memory). Memory was the instigator.

That was followed by the Cambrian explosion with the Web 1 or Internet 1 era ending with dot-com. Logic was the Pivot. That summary is here (Logical Moore)

Then came the many moore or multi-core, virtualization, cloud and that is here. (Many Moore)

Finally speculating on the future is here (Moore No More)

But more to come on the future as we have entered the next disruptive phase.

This is the ‘pre-cambrian’ explosion of semiconductors that created many categories and industries starting with the invention of the first diode to the shift from memory driving semiconductor processes to logic (the famous Andy Grove Pivot).

As shown in the visual below, it was the era of Bipolar (pre-CMOS), the creation of the first calculator based on 4004 that punctuated the beginning of modern semiconductor and Intel’s thumbprint in the evolution of semiconductors.

Going down the memory lane, its 1968 and the creation of the first semiconductor memory which was followed soon by frederico faggin and the 4004 architecture and the beginning of an instruction set (x86) that has remained upwards compatible (largely) to-date. Amazing that it has withstood the test of processor evolution and competition for 50 years almost. It was the height of IBM mainframe with its 370 and 360 architectures, DEC with its mini super computers and Sperry and Univac / Burroughs challenging IBM for business/commercial computing.

It was also the beginning of the modern version of venture capital with Arthur Rock making his first investment in Intel. 1972 was also the vietnam end game, oil crisis while quietly Arpanet with its first pings between two locations across the country happen. Seeds of ethernet was sown then which has also survived the onslaught of other ideas.

The perfect mix of Ethernet, PNP devices (flavors changed with time), CISC/x86 and by late 1970s, Microsoft and BSD Unix – all of these were given birth in this era and lifted so many companies, so many entrepreneurs, so many industries, countries too. (Taiwan eventually, which is in the news lately).

1976-1980 with 8086 – the birth of the modern microprocessor, BSD Unix and DOS. Looking back as in the Epoch III, it was the ARM, iPhone and AWS – how co-incident (within years) technologies that are seemingly unliked (Unix and Windows), but play a role eventually for new categories of platforms.

That era ended around Circa 1984 (roughly) 16 years, with Intel dropping memory for logic (a critical decision by Andy Grove), the birth of RISC with two competing professors and institutions (Berkeley and Stanford, Hennessy and Patterson) and the emergence of the Mac.

Little did I know reflecting back or googling back in history, that this era was punctuated by other magnetic drives giving birth to the modern hard disk, compilers and most important of all CMOS – complementary metal oxide semiconductor. CMOS was not Intel’s initial choice, but it came just by sheer nature of its characteristics beating out NMOS, PMOS and more importantly Bipolar or emitter coupled logic – not for power density (which was the reason claimed them) – just the scalability it showed over time.

Software as an industry/category was effectively created by Microsoft (mainframes and minicomputers had a closed software ecosystem). Oracle and SAP were founded and the big enterprise software market was effectively created at the same time as client software company was founded (microsoft and perhaps Apple) – Co-incidence?. Database was a separate category / company or bundled by the big mainframe makers.

1984: Big Brother did not appear and it was the dawn of open and free internet, open systems (Sun), new microprocessor approach (RISC), compilers became good enough to beat most hand written code.

Little did I know 1984 was the year IP law was formulated thanks to intense lobbying by Intel to fend off the Japanese who were competing rather well afgainst Intel on memory (which is no longer in Japan either now).

Rising tide lifts all boats. The chart below the boats that the confluence of MOS, Unix, Windows, PC, Server and the 10Mbps ethernet (which is now 10,000 times faster).

It was the birth and quick death of AI (expert systems) within a short span of a few years. Categories that were founded were Database, personal computing (SW and hardware), technical workstations that led to client-server later, birth of modern networking, OEM business (separation of selling hardware from software), Internet and the end or the beginning of the end of vertically integrated Mainframe, Intel and memory, (NMOS, PMOS, Bipolar)

My professional life in technology and semiconductors (which was not the original plan like most) started at the end of this era competing with Intel via RISC, Sun, CMOS and in hindsight carried through the Epoch II (1987-2003), which was the exponential part of Moore’s law.

How lucky I was in retrospect to enter the semiconductor industry Epoch II. That’s the next blog.

The Cambrian explosion era: This part of Moore’s law evolution is most interesting/exciting as it simultaneously saw the rise of various companies, categories, technologies, business models and everything in between but more relevant for me personally as it overlapped personally with my professional life /growth. So the impressions left are stronger and deeper.

But, let’s start with a recap of the Moore growth curve and timelines..

This was Internet 1 or Web 1.

CMOS established itself as the dominant. RISC established as the dominant microprocessor architectural model (which was eventually co-opted by x86/CISC), OEM as a category emerged, not just for compute, but for networking (Cisco) and more relevant EMC (Storage).

The creation and formalization of Software (Enterprise and Consumer), Compute, Network and Storage OEMs and connecting all them to create the network effects we see the results today.

In 1985, the 386, 5″ HDD helped accelerate the PC revolution. The Pizza box Sun workstation which later gave way to the 1U server driving the client – server architectural model fueled by the killer micros taking on VAX and IBM 360 to onslaught both the big enterprise technical and commercial computing.

The $75B dollar OEM business we see today was created from $0B by EMC, Cisco, HP, Sun, SGI, IBM and many more.

1991-1995 and later 1999-2003 are two interesting segments of this era.

1991-1995: The emergence of the Mosaic browser was co-incident with creation of Linux to challenge prior proprietary Unix operating systems that eventually led to the creation of the LAMP stack and thus rudimentary version of the ‘cloud stack’, all open source and helped consolidate x86 as x86 caught up with the RISC by late 1990s on performance, MHz marketing, and enterprise RAS capabilities. It was also the beginning of 64 bit computing led by MIPS, SPARC and eventually PPC and x86. But the modern cloud distributed systems design was created by Akamai which was founded in response to a challenged by Tim Berners Lee back in 1995. Its interesting to look back in time to see how technology evolutions like biological evolutions are both a random walk, survival of the fittest and is constrained (in this case) by faster, cheaper, better, more scale.

1998 is interesting looking back – Founding of Google, VMware, Equinix and many more – but today in 2022, Google epitomizes the leading edge of systems, while VMware has followed the Sun trajectory of living breathing for 20 years to get eventually acquired by another company whereas Equinix a real estate company is moving up the value chain to become the switzerland (potentially) the of physical infrastructure.

1998 is interesting from an Intel standpoint. It had won the client side computing, but failed to get significant market share in the enterprise, technical computing but was not the leader in semiconductor logic (it had compatriots in IBM and TI at a minimum).

But rising to the challenge of beating all the RISC vendors, with MHz marketing as an additional weapon, the technology (fab) guys at Intel took it upon to push ahead starting with 0.18 uM (Coppertone) to advance the transistor performance so hard that we at TI (then) and soon IBM felt it was not an economically competitive game to play.

The above chart (not a totally fair chart to compare two different microprocessor design styles with one metric – MHz), still its the best way to highlight what Intel and their fab did back in 1998 to separate the men from the boys, so to speak.

1998 was the beginning of the end of big SMP as witnessed by a 64GB 64 core SPARC SMP selling for $1M (today 64GB is $250 or less) but was the dinosaur (looking back) that had to give way to the rising tide of small 1U distributed system design that was initiated by Akamai, but exploited by Google and eventually everybody doing cloud and SaaS. It was of-course fueled by the emergence of 1G and soon 10G ethernet.

CMOS and multi layer metal (10+) became the norm. Multi-core was it as it nascent stages of creation and evolution. Apple was in the dumps but an iPOD was saving the bacon to eventually paved the way to an Phone and the emergence of ARM, eventuaally Samsung and TSMC as competitive foundries to Intel.

Personally, looking back my technical and professional learning and growth followed the same exponential as Moore’s law (A chart below to show). Starting from 1991 to 2003 – with the single chip SoC microprocessor (industry first and that too in CMOS) to 8 generations of SPARC culminating in the first dual core – spanning from 0.8uM to 90nm (roughly a decade) over a 10 year period.

Pinching myself to be lucky to have been at the right time , right place and right part of the Moore evolution.

This era was ended by dot-com bust and next wave of architectural simplification soon to follow (like RISC did to prior design styles back in 1984).

A few other technology innovations that should not be left out. FN tunneling i.e. Flash as technology was created in the late 1980s but found its way as a consumer portable media storage device (initially with the iPOD) and eventually into the enterprise.

A few notable things in this era.

EDA as a category and industry was formed (left today by Cadence and Synopsys)

OEM model was the dominant business model with licensed software as a business that depended on the OEM hardware. Separation of hardware and software from a business and GTM

Networking as a category as demonstrated by Cisco

Storage as a category as seen with EMC and NetApp with Flash finding its way over a 20 year period as key component of computing.

The browser as the presentation layer and the creation of systems of engagement, systems of intelligence and systems of record as the 3-layers of the enterprise stack.

Broadband witnessed hyper growth and innovcation in DSL, WiFi (OFDM).

It also saw the end of Mini computers (VAX/Digital), BiCMOS, GaAS, ECL/Bipolar, end of Japan’s dominance in memory.

Opensource came to existence to disrupt the prior models of Software distribution

In closing… Intel’s market cap rose and fell like most other dot-com companies.

It was peak Intel by 2003 and that 20 years later is being challenged.

The next Tsunami….

We overestimate what we can accomplish in 2 years and under-estimate what we can in 10 years

Bill Gates

“We are at a time of enormous transition and opportunity, as nearly all large-scale computing is moving to cloud infrastructure, classical technology trends are hitting limits, new programming paradigms and usage patterns are taking hold, and most levels of systems design are being restructured. We are seeing wholesale change with the introduction of new applications around ML training and real-time inference to massive-scale data analytics and processing workloads fed by globally connected edge and cellular devices. This is all happening while the performance and efficiency gains we’ve relied on for decades are slowing dramatically from generation to generation. And while reliability is more important than ever as we deploy societally-critical infrastructure, we are challenged by increasing hardware entropy as underlying components approach angstrom scale manufacturing processes and trillions of transistors.”

Amin Vahdat on Google on SRG creation

We are at the cusp of another systems evolution and rebuild of the entire stack. We have entered the 4th epoch of computing at roughly 20 year intervals, with

• Epoch 1 1965-1985 (mainframe , CRT terminal (VT100))
• Epoch 2: 1985-2005 ([Workstation, Unix Servers], [PC, Mac])
• Epoch 3: 2005-2025 (Cloud, SmartPhone)
• Epoch 4: 2025- (TBD, TBD)

It roughly follows Moore’s law in terms of impact to systems as shown in the visual below.

The onset of next wave is both obvious and non-obvious based on your vantage point. It was not obvious in 1980 – Ethernet, NFS, RISC, Unix let Sun (and perhaps PCs) and eventually big SMP boxes was the end game along with it Sun’s demise starting the end of dot-com bust. Technology stack drove the use case but they drove out the mini and main frame. So Monolithic to disaggregated back to monolithic (or perhaps modular) within 20 years!!! The business model then was OEM (Capex). Unix/C/RISC was the tech stack at the infrastructure level and use cases or killer apps were HPC, EDA and eventually shared everything databases (Oracle) and 3-tier enterprise apps (SAP). In a prior SoC to SoP blog I mentioned the emergence of cheap servers from both Sun and ODMs – but Sun failed to capitalize on that early lead and trend as it was beholden to margin over market share – a point Martin Casado makes about Dr. Reddy Labs . A classic reference

By 2000 we saw search (Google, 1998), e-commerce (AWS, 1995), hypervisor (VMware, 1998), distributed systems (1U rack mount servers), 10G networks, distributed storage (S3 – 2007) and then cloud happened with that and more. This time use cases drove the infrastructure stack and the incumbment i.e. OEMs (Sun, HPE, DEC etc) missed that transition and some eventually disappeared with last man standing effectively being Dell through consolidation, low cost supply chain (market share over margin) and financial engineering (well executed!). Again disaggregated and now back to monolithic (hyper scaler clouds of today). The business model with Cloud being Opex. (Linux+VM/Java,javascript,c,…/x86) is the tech stack and all the new consumer and enterprise SaaS apps.

The tides of complexity and simplification is on its march again – but this time its use case and technology coming from both ends and there will be new winners and many loosers. Martin’s blog on trillion dollar paradox is a leading indicator of this shift and the pendulum is swinging back to the middle between the old OEM/on-prem model and hyperscale cloud opex model to something new. I am guessing there are healthy mix of agreements and disagreements with this shift inside these hyperscalers. Just when you think they are too big to disappear, think again – every cycle leaves a consolidated entity eventually and new players emerge. To quote Clayton’s innovators dilemma

The third dimension [is] new value networks. These constitute either new customers who previously lacked the money or skills to buy and use the product, or different situations in which a product can be used — enabled by improvements in simplicity, portability, and product cost…We say that new-market disruptions compete with “nonconsumption” because new-market disruptive products are so much more affordable to own and simpler to use that they enable a whole new population of people to begin owning and using the product, and to do so in a more convenient setting.

Clayton Christensen

The questions to answer are –

• What is the new infrastructure stack
• What is the new business model
• What are the new use case drivers
• Who are these new customers?

Its fascinating to watch Cloudflare which reminded me of Akamai and Inktomi back in 1998 that led to 1U/ small server (@Sun ) – but to be only ignored by the $1M sales GMs. They took the company down with their margin over market share mentality as they were drunk by the fish falling into the boat during pre dot-com days. Strange 20 years later replace Inktomi or Akamai to Cloudflare and emergence of new category of consumption and deployment is the rising tide that is going to lift some new boats and leave some behind.

Fast forward, Its near impossible to predict which technology and companies will be torch bearers by 2030, but we can start with what we got. A few things to keep in mind.

• Storage: Cloud was enabled by foundational under-pinnings in storage (GFS, S3) – distributed storage. 1980s systems as anchored by Sun Microsystems was successful because of NFS. So a common pattern with emergence of new stack is storage is an important and critical tier and those who got it right tend to rule the roost (Sun, AWS).
• Network: Over the 2 epochs, networks (TCP/IP) dominated with Ethernet winning by Epoch 1, riding the Silicon curve in 2nd epoch and now we are at the cusp of breaking it. Its no longer a unitary world. The network was the computer in Epoch 2. It was even more important in the cloud era and its going to be much more critical in the coming epoch – but its not the same networking model as you would think though.
• Compute: ILP (Instruction level parallelism) was the enabler in Epoch 2 via RISC. TLP (Thread level Parallelism) was enabler for Epoch 3 (Multi-core / threading) and thus poses the question – what is this wave going to present itself with. IPU, DPU, TPU are all names for coherent “datapath’ accelerators and that boat is sailing.
• OS: Unix was the hardware abstraction layer that gave way to hypervisors that is giving way to K8s and I would say more like Serverless/Lambda i.e. you need both a HW abstraction and resource management layer.
• Developer Abstraction:

• Asset utilization: Turning cost line items in your P&L and turning into business is Amazon’s claim to fame. Asset light vs Asset heavy arguments (Fabless vs Fab arguments). So taking one use case paid for by a class of customers and leveraging that asset investment into another business is common practice and cloudflare is playing that game. This is an important element of disruptions and disruptors. Famously – Scott (Sun CEO) used to implore on some of us – investment of SPARC is already paid for – why not open source or give it away? Looking back 20 years later he was right, but not taken seriously or executed.
• Marginal value of technology and value extraction: The cost of transistor going to near 0, led to the entire computing platform in the 1980s and 1990s. The cost of transporting a byte going to zero led to the internet and other upper level services and value extraction. The cost of storage (HDD) going to zero led to the cloud (Yahoo offering mail storage, Google Drive and S3). The next wave is going to be cost of transaction or inferencing going to zero will lead to the next set of disruptors and value extraction.

What is the new infrastructure Stack?

Network is the computer starts with the rack: This has been around for sometime, but finally a confluence of technologies and use cases i.e. a perfect storm is brewing. Like the beginning of every epoch, we are starting with ‘disaggregated systems’ (or perhaps modular) the computer and the computing platform starts with refactoring the computer as we know to simpler forms and assembled at upper layers of the stack to enable the evolution of lower level components. The physical rack as a computer is not new, but the software layers to make that viable is more needed and viable now than before. It starts with basic building blocks which are now SoP ( systems on a package ), CXL (Computer Express Link), (x)PU and emerging memory components. At the height of the moore exponential (epoch 2), the CMOS roadmaps drove higher perf, lower cost and lower power all three. Like the CAP theorem, now we can get only 2 out of 3 and to keep on the same Moore curve, SoP is one of the ways to achieve that same performance curve. Given more data parallel workloads, performance is achieved over more silicon area, power is distributed over a larger surface (density) and cost is managed by re-use of many sub-componets. Its expected by end of the decade the total cost and power as % of the single system dedicated to ‘control path’ execution will shrink as the ‘data path’ component will grow driven by ML/AI and other emerging verticals.

Systems on a package is enabler of disaggregation of the system. It starts out with addressing performance, cost and power, but when combined with emerging memory tiering, CXL at a rack level its a key enabler of disaggregating a single node, but aggregating at the rack level.

Three trends – Memory is getting disaggregated, computing is going more datapath and disaggregated to meet the scale requirements (Nvidia with NVlink and A100, Google with TPUs and IB), Network is going 2 tier to handle latency vs bandwidth di-chotomy and new frameworks are getting established to be the contract with the application developers. Lets explore each one in a little bit more detail. The physical disaggregation has to be aggregated at the software level i.e.

Memory vs Storage: While memory has been tracking Moore’s law, scale of data processing is much larger in scale and thus the emergence of Hadoop and other distributed computation embedded within storage model. But we are reaching a point with emergence of interconnects like CXL enabling coherent tiered memory with manageable latencies (1-3 NUMA hops) but significant increase in capacity. When combined with new workloads that demand not infinite storage space (consumer SaaS), but moderate size (some enterprise SaaS, edge, ML, ADN to name a few), but need much higher performance (latency) that we can re-imagine systems at the rack level with memory only access modes with associated failure domains handled entirely in software.

A visual of that is shown below.

By mid-decade one can imagine 2+ PB ‘memory’ semantic with tiers of memory enabled by CXL interconnect. Any page in such a locally distributed system (hyperconverged is the wrong word – so not using it) can be Sub uS. There is tremendous investment in PCIe, but the economic motivation for these new apps are the drivers for memory-centric computing model. At moderate scale handling (tail) latency is also of value. (Ref: Attack of the killer microseconds)

Coherent Co-Processors: Historically accelerators have been in their own non-coherent space (starting with GPUs ever since graphics has been a category) and ofcourse NICs and and FPGAs and some specialized HPC accelerators. Coherency and ‘share-able’ memory simplifies the programming model significantly and the great unlock is CXL as until now in the mainstream market, Intel did not open up their coherent interface to other providers for some very good technical and perhaps business reasons. With the new workloads (ML in particular) demanding more compute and the mapping of the ML algorithms to sparse linear algebra (over-generlized – but remains true for the past 3-5 years) reflects on the shift in both time and power spent in compute cycles.

The 1-2uS and 10uS are interesting numbers in the memory – storage visual above to demark the split between memory model and storage/IO model. That lends itself to two types of networks – in this case they are synergistic, one can subsume the other and each one solves the needs below the sync-barrier or RDMA barrier and the other provides reach, throughput and carries the 40 year investment. The beauty of CXL with CXL.io as one of the operating modes is it can transport IP packets within the same basic payload and thus provide compatibility while providing unique capability for rack scale needs. A rack will be the new unit of compute, the new unit of aggregation at the software level and is a good demarcation point for the foreseeable future. 2030 is 10 years away and a lot can change in that 10 years (whole new categories of companies will emerge).

By 2030 these three shifts will enable us to create the ‘fungible computer’ atleast at the rack level.

Disaggregation of silicon into component parts but aggregating them at upper layers of the stack is the key shift that is enabled by new workloads that are more data parallel, re-imagined processing pipelines, memory centric computational models at specific cost and power plateaus. SoP, CXL, (x)PU (x is your favourite IPU, NPU, DPU, MPU ……the alphabet soup of ideas).

The natural value shift and sedimentation is on its march once again. Unix was the high value at the dawn of RISC and OS (Solaris, Linux) sedimented down in value over a 20 year period. Multi-core and Cloud reset that with hypervisor and scale management frameworks with natural sedimentation that has happened. Emerging ML-IR and layers that map, aggregate, schedule and resource manage these disaggregated components will be most value and will take its due 20 year cycle to sediment itself until the next wave of innovation happens.

All of this is technical direction – reality might not follow technology visions. Going back to the proposition stated up front – this epoch we are going to see new efforts that drive both technology (bottoms up) and use cases (tops down). To enable that a new delivery and consumption model is needed.

Enter the bottom feeder once more…The upstream push by a select few global colo providers when married with right open and/or proprietary management stacks and many elements of the system design above used by some of the new players (e.g. Cloudflare, crypto companies – decentralized model is a first class property) will ride the next Tsunami to challenge current incumbents with the new technology stack (edge native) and new business models. The business model is interesting and will require a blog of its own at the right time, but its starting to emerge. To remind ourselves, we shifted from Capex to Opex to now……..(leave it as an exercise or perhaps share your ideas with me (DM) – love to hear them…).

In Summary I am reminded of Jerry Chen’s framework Systems of engagement, Systems of Intelligence, Systems of record. As more things change its continues to fit within the overall framework.

TierEpo	Epoch2	Epoch3	Epoch4
Tier 1 System	Web	Engagement	NLP,CV, ML ?
Tier 2 System	App Tier	Intelligence	Serverless ?
Tier 3 System	Database	Record	Crypto ?

The pendulum is starting to swing away from the current cloud to either the new middle (cloud exchanges) or perhaps continue to find the other end of its swing (edge). We will know for sure by 2025, long before 2030….

Back in 2001 led the charge of building basic blocks for the emerging distributed systems world. Alas, failed to see the use case driven approach that led to innovation elsewhere. Lessons learnt – See more of this from me this decade and if interested lets talk, engage and collaborate.

In closing to what prompted me to pen this was Amin’s note – While the ‘cloud’ has innovated a lot in hardware systems, most of it was derived from HW innovations that were kicked off in the prior epoch. This coming decade will be unlike both prior epochs as we don’t have more of moore and its highly distributed and perhaps decentralized but more hardware innovation is at play than the prior epoch (cloud era).

It’s 02/02/2020. Almost 3 years back, I posted this on Tesla – at the core its chemistry and intelligence. In many way, Elon and crew are well on their way of executing on both topics of speculation.

Battery Chemistry/Tech: The roadmap to hitting $100/KWh is well on its way and Tesla is leading it from all fronts. Manufacturing at scale, improving density with the acquisition of Maxwell and Hibar and of-course internal efforts. I love the way Jim Keller (another fellow chip nut) calls out Elon’s law “Figure out the optimal configuration of atoms first and figure out a way to put them there”. I love this quote. The quest for chemistry is deep rooted in principles of physics as applied to engineering and thus eventual value extraction. We have entered the knee of the curve with Tesla approaching and crossing million cars on the road in both being able to invest in chemistry and vice versa chemistry aiding the company to drive down the cost and range and thus value. Of-course distance itself from its competitors.

Artificial Intelligence: The million cars and 14 billion miles driven with partial autonomous driving is greatest field based iterative improvement in machine learning that is unmatched. Coupled that with brilliance of tech leaders in algorithms (Andrej Karpathy) and Silicon Design (Pete Bannon) and approach to machine vision and now using the currency, name and leadership to attract the best and brightest. Machine vision is the Tsunami will lift all ML boats and between the need for autonomy, the talent and approach (fast iterative design cycle), despite the billions of dollar investment .in other ML chip outfits by VC, this is going to standout. Who knows there might well be the next Data Center chip embedded in Tesla (Recall the wimpy 4004 calculator chip became the data center chip 25 years later).

So in Feb 2020, we have euphoria about this stock. Back in June 2017 the stock was at $353 and has been oscillating until now. Its unclear why its zooming this fast exponentially but a few events have happened.

The realization that competition is nowhere near Tesla’s manufacturing scale (Fremont and Shanghai and soon Berlin) with step and repeat like silicon fabs model (not copy exact like Intel did but copy similar), the cost of battery coming down, the excitement of the product roadmap (depth and breadth) [Can’t wait to get my hands on Cybertruck] and leadership in machine vision, we might have crossed the knee of the curve of the market opportunity/potential that the analyst and investment crowd are now jumping in like herds (as they always do).

While there is euphoria and the stock will go up and down (with Musk’s utternances and distractions), the roadmap to $1T and beyond seems more plausible.

There many lenses through which to look at this company today – but I look at it this way. Its better than Amazon. Its better than Alphabet and might be even better than Apple in the long run except in one dimension. Its better because inside today’s Tesla there is

• A car company
• A Battery company at planet scale
• An AI/ML company (machine vision in particular)
• An electric storage company
• An Electric Utility company (low value but at scale gets interesting)
• An energy distribution company
• A potential Cloud or computer company (if a book store turns into cloud computing, an autonomous car can have the right assets for becoming a cloud company)
• A big data/mapping/navigation company
• A carless car company (i.e. Uber/Lyft killer robotaxi)
• A machine vision driven robotics company
• and more to come….(more than letters in the Alphabet)

The only limiter to realize all these companies – management bench strength to support Elon.

This is a half time report/summary. We have gone 3X in market cap in 2.5 years. The next 3 is going come faster than we can see…

Next check point 22/02/2022. Until then watch and load up on TSLA.

Update – 10/21/20 – Elon Musk commenting after Quarterly Results

https://finance.yahoo.com/news/tesla-chain-startups-elon-musk-222707290.html