Infrastructure software undervalued on data boom
The guest argued that core database and infrastructure software providers are undervalued because enterprises must scale their data storage tenfold to defend against AI threats and power analytics.
The argument
Nikesh Arora explained that organizations need to collect and store vastly more data to establish the necessary memory and context for AI defense. He contrasted this growing need for foundational data infrastructure with the decline of analytical software.
The thesis, stress-tested
✓ What validates it
- ✓Accelerating customer data storage volume growth reported by database vendors
- ✓Upward revisions in forward revenue guidance from infrastructure software companies
▸ Risks discussed
- ▸Downward pricing pressure on cloud data storage
- ▸Intense competition among major database and cloud hyperscaler platforms
Hear it yourself
"Just take an take an old industrial system which is running, you know, OT code on the edge. You can find that vulnerability reasonably easily. So so we're in a race right now between the cyber defenders finding these vulnerabilities and patching them before the cyber attackers do the same thing. Yes. And how do you feel like we're doing in that race? So not as well as we should be doing, which is great for our business, but that's a different story. So, like, every company has to go look at their code base and figure out where the vulnerabilities are and fix them. So if you"
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