All major tech has a new existential threat. Once Apple begins replacing its data centers with Apple Silicon chips it will create unbeatable economies in services.
The rest of faang must find a way to catch up. They will already pay huge amounts in the meantime giving Apple even greater latitude to win coming new markets.
There’s also clear opportunity for Apple to enable developers with cheaper services than other providers. This is a major issue for Amazon and Microsoft.
I get the sense that hyperscalers don’t give Intel a ton of margin in negotiations, so they already have access to great server chips at competitive prices. And they’re bringing in AMD now to compete. Where M1 really shines is client-side applications like video handling, ML inference, and crazy branchy nearly single-threaded code. Servers can afford to run much lower clock speeds (see GCP n1 family, for example) because web serving is an embarrassingly parallel problem. Sure, some ARM might help lower costs of internal things like S3, but Graviton2 isn’t that incredible compared to the M1-vs-Coffee Lake comparisons going on in the laptop world.
The rest of faang must find a way to catch up. They will already pay huge amounts in the meantime giving Apple even greater latitude to win coming new markets.
There’s also clear opportunity for Apple to enable developers with cheaper services than other providers. This is a major issue for Amazon and Microsoft.