It’s Friday, so it’s time for some big ideas.
I was really intrigued by Matt Stoller in his BIG newsletter. While the article focuses on TikTok, the real premise is how the US government is taking on privacy and data regulation, highlighting the actions taken by various agencies such as the Federal Trade Commission (FTC), Antitrust Division, Consumer Financial Protection Bureau, and Health and Human Services Department. Core to his premise: Privacy and data are often misunderstood and undefined, with many conflating different aspects of data usage as privacy violations. However, the main driver of mass data collection is advertising. Recent legal actions are restructuring how data brokers operate and how ad markets work, challenging the narrative that privacy and social media are unregulated.
Larry Walsh at Channelnomics writes a rare public post on IT spending growth projections. His premise is that IT spending growth projections should be taken with caution as they are only directional. While major analyst firms forecast healthy growth, the market is not entirely healthy due to global economic conditions. Partner confidence is down, and macroeconomic trends should be considered when interpreting these projections. Forecasts are constantly changing, and market conditions can shift dramatically. It is important to view these projections as directional rather than absolutes.
Speaking of IT Spending, Constellation Research focuses on how AI is changing cloud workloads, impacting the economic dynamics of the public cloud. The rise of generative AI has altered the nature of workloads, requiring consistent and substantial computing resources. This has led to hyperscalers optimizing their cloud offerings for AI workloads and investing in custom AI chips. However, the cost implications of running AI workloads in the public cloud raise questions about its long-term cost-effectiveness. Alternative solutions are emerging, such as specialized cloud providers and private GPU clouds. Their premise: CIOs should invest in AI expertise, consider hybrid cloud strategies, leverage containerization, utilize cost optimization tools, and address security and regulatory considerations. Navigating this new landscape will have significant competitive ramifications, and forward-thinking strategies are required to succeed.
And the noise over Kate Middleton’s portrait isn’t something I covered, but Charlie Warzel in the Atlanticpoints to the end of Shared Reality. The photo and ensuing conversation showcase the collision between plausibility and conspiracy in a choose-your-own-reality information dystopia. He explores the impact of deepfakes and generative AI tools on shared reality, the role of technology in creating synthetic media, and the erosion of trust in institutions and gatekeeping organizations. Warzel raises concerns about the amplifying effect of synthetic media on biases and confirmation bias, ultimately questioning the future of truth in a world where nothing is true and everything is possible.
Why do we care?
Matt Stoller’s piece has me considering how a patchwork of laws is being used to provide some data protection cover. Larry Walsh’s article is spot on with my approach to data – it’s directional and gives a sense of movement.
The Constellation Research piece is to give you some thought on service offerings, and Charlie Warzel’s has me pondering a bit of existential dread. There isn’t a pure technology solution to this problem, but technology is likely a piece of the solution, particularly considering the technology that has been introduced causing it.
