AI Infrastructure Lessons from Our Visit to Huawei (269)
This week’s podcast is a summary of our visit to the Huawei AI Cloud exhibition in Shenzhen.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the TechMoat Consulting.Here is the link to our Tech Tours.Here are the mentioned articles about AI Infrastructure.Understanding AI Infrastructure Part 1: AI Data Centers (Tech Strategy)Understanding AI Infrastructure Part 2: AI Compute is Different (Tech Strategy)Understanding AI Infrastructure Part 3: GenAI Operating Costs (Tech Strategy)Understanding AI Infrastructure Part 4: The Cost of Correctness (Tech Strategy)------I am a consultant and keynote speaker on how to accelerate growth with improving customer experiences (CX) and digital moats.I am a partner at TechMoat Consulting, a consulting firm specialized in how to increase growth with improved customer experiences (CX), personalization and other types of customer value. Get in touch here.I am also author of the Moats and Marathons book series, a framework for building and measuring competitive advantages in digital businesses.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show
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What is the Cost of Maintaining the Correctness of a GenAI Service? (268)
This week’s podcast is about estimating the costs of providing GenAI products and services. And this is changing.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the TechMoat Consulting.Here is the link to our Tech Tours.My approach to assessing GenAI operating costs is the below checklist.What is the cost of compute, including energy and cooling? Initial cost vs. ongoing?The core compute is going to drive a lot of the costs. Especially if you are using an AI cloud service provider. If you have a downloaded open-source model, then it’s mostly the initial cost.These compute costs dependent on the requirements of the AI workloads:The compute requirementsThe timing requirementsThe memory requirementsWhat is the cost of creating and maintaining the desired correctness over time?How accurate and correct you need the foundation model to be is a big deal. And this factor determines how much of the operations are done by software versus humans. It can make the costs of GenAI products look a lot more like services than traditional software.My main questions are:How much does correctness matter? What level of correctness does the product need to compete? What is the cost of inaccuracy?How does correctness change over time? Is it stable and flat lining, advancing, naturally changing or deteriorating?How much of a long tail is there in the domain? Is the long tail a liability or a benefit?How much of the process is iterative? How much are humans in the loop?What is the initial cost of training and getting to the desired level of correctness?What is the ongoing cost of inference at the desired level of correctness? How much are humans in the loop?What is the cost and frequency of fine tuning and/or retraining?What are the cost implications of increasing scale?What are the scale advantages vs. disadvantages?Does the Jevon paradox apply? --------I am a consultant and keynote speaker on how to accelerate growth with improving customer experiences (CX) and digital moats.I am a partner at TechMoat Consulting, a consulting firm specialized in how to increase growth with improved customer experiences (CX), personalization and other types of customer value. Get in touch here.I am also author of the Moats and Marathons book series, a framework for building and measuring competitive advantages in digital businesses.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show
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Lessons from My Visits to Xiaomi, Unitree and iQIYI (267)
This week’s podcast is about my trip to Xiaomi, Unitree and iQIYI.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the TechMoat Consulting.Here is the link to our Tech Tours.---------I am a consultant and keynote speaker on how to accelerate growth with improving customer experiences (CX) and digital moats.I am a partner at TechMoat Consulting, a consulting firm specialized in how to increase growth with improved customer experiences (CX), personalization and other types of customer value. Get in touch here.I am also author of the Moats and Marathons book series, a framework for building and measuring competitive advantages in digital businesses.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show
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For Agentic Ecommerce Focus on the ABCs (Advisors, Brokers and Concierges) (266)
This week’s podcast is about AI Agents transforming ecommerce. Likely all commerce.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the TechMoat Consulting.Here is the link to our Tech Tours.Here is the McKinsey article I mentioned:The agentic commerce opportunity: How AI agents are ushering in a new era for consumers and merchantsHere is the BCG article I mentioned:When Brands Meet AI Bots: Customer Experience in the Era of Agents-------- I am a consultant and keynote speaker on how to accelerate growth with improving customer experiences (CX) and digital moats.I am a partner at TechMoat Consulting, a consulting firm specialized in how to increase growth with improved customer experiences (CX), personalization and other types of customer value. Get in touch here.I am also author of the Moats and Marathons book series, a framework for building and measuring competitive advantages in digital businesses.Note: This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.Support the show
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Why Data Network Effects and Data Scale Aren’t Moats. Plus, More on Bundling. (260)
This week’s podcast is about why bundling (and cross-selling and upselling) are so powerful in digital. Plus, some thoughts on why data moats are mostly not real.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the TechMoat Consulting.Here is the link to our Tech Tours.Here is the article on bundling by Chris Dixon.How bundling benefits sellers and buyersA lot of thinking on data as a moat comes from these articles by Martin Casado, Julian Wright and Andre Hagiu.The Empty Promise of Data MoatsWhen Data Creates Competitive AdvantageHere are 7 complications I mentioned about bundling.Bundling requires a a robust product suite.You want a low attach rate. So you don't cannibalize products by bundling.Bundling can complicate the customer experience and buying journey.Bundling works best when all customers have similar total willingness to pay. But different tastes.Unlimited bundles (subscriptions) can have problems if there are non-zero product costs.Unlimited bundles (subscriptions) do limit revenue per user. This is a problem when willingness to pay is positively correlated with demand for variety.Subscription models do not reward superstar creators very well. ----------I am a consultant and keynote speaker on how to accelerate growth with improving customer experiences (CX) and digital moats.I am a partner at TechMoat Consulting, a consulting firm specialized in how to increase growth with improved customer experiences (CX), personalization and other types of customer value. Get in touch here.I am also author of the Moats and Marathons book series, a framework for building and measuring competitive advantages in digital businesses.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show
A podcast by TechMoat Consulting on the strategies of the best digital companies in the US and China / Asia. Tech Strategy offers:-Deep dives into the strategies and business models of leading tech companies. -Lessons on important digital concepts.Lots more information available at Jefftowson.com and techmoatconsulting.comTo marketers, I do not have podcast guests. This podcast is not investment advice. Me and any guests may get the numbers or information wrong. The views expressed may no longer be relevant. Investing is risky. Do your own research.
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