Azure Expands Cloud Capabilities with New Cobalt ARM Instances

Azure Expands Cloud Capabilities with New ARM Instances

Liftr Insights data reveals the extent of Azure's deployment, closely following AWS's lead.

Recent findings from Liftr Insights demonstrate the emergence of Azure's Cobalt CPU on the ARM architecture, marking a significant step in cloud computing development.

Introduction of Cobalt CPU by Azure

The Cobalt CPU has made its debut in 21 different regions across multiple continents, operated on the ARM architecture. This rollout will enhance the existing ARM-based instances at Azure, which were previously acquired from Ampere Computing.

Growth of ARM in Cloud Infrastructure

The introduction of the Cobalt CPU signals potential for further growth of ARM within the industry. Tech leaders have noted this shift towards 'home-grown' CPU architectures for cloud services.

CEO of Liftr Insights, Tab Schadt, commented on this evolution, stating, "Our customers and the supply chain have anticipated this transition for years. AWS paved the way by demonstrating the advantages of running instances on tailored designs."

Market Reactions from Industry Giants

This trend has not gone unnoticed by Intel and AMD. Although their sales to cloud providers have seen an uptick in recent years, they are witnessing a gradual loss in market share, mainly shifting towards ARM-based processors.

As noted in Liftr data, ARM previously accounted for 4.7% of public cloud CPUs at the close of 2021 and is rapidly approaching a 10% share. For AWS, the figure has increased to nearly 25%.

Azure’s coverage of ARM instances is notably lesser than its competitors, but the introduction of Cobalt indicates a future commitment to expanding ARM offerings.

Impacts on Ampere Computing and the Cloud Ecosystem

Ampere Computing is also observing these market shifts closely. After the successful launch of their Graviton ARM-based instances by AWS, other leading cloud providers have followed suit by adopting ARM technology powered by Ampere CPUs.

Ampere has seen tremendous growth, expanding from a few hundred instance types in 2021 to thousands, now accounting for approximately 24.9% of ARM instances in the cloud as of mid-2024.

Cost Benefits of ARM Instances

In addition to performance advantages, cost-effectiveness is another critical factor driving enterprises toward ARM. Liftr data reveals that average pricing for ARM-based instances is about 50.5% that of x86 instances based on pre-core pricing. This trend persists even amid a decreasing x86 price history and increasing ARM prices over the past five years.

About Liftr Insights

Liftr Insights is a market intelligence firm that provides reliable data on configurations, components, deployment geo, and pricing. The range includes:

• Server processors: Intel Xeon, AMD EPYC, Aliyun Yitian, AWS Graviton, and Ampere Computing Altra
• Datacenter compute accelerators: GPUs, FPGAs, TPUs, and AI chips from major companies such as NVIDIA, Xilinx, Intel, AMD, AWS, Google, and Qualcomm.

The Liftr Cloud Regions Map features data about multiple tracked companies, including major players like Amazon Web Services and Microsoft Azure, as well as industry leaders in cloud computing and semiconductor manufacturing.

Liftr Insights excels in translating service provider data into actionable intelligence for their customers, enhancing decision-making processes across datasets.

Frequently Asked Questions

What is the significance of Azure's Cobalt CPU?

Azure's Cobalt CPU marks a pivotal shift towards ARM architecture in cloud computing, reflecting an industry trend aimed at optimizing performance and efficiency.

How does the introduction of Cobalt impact competition?

The launch of Cobalt intensifies competition among cloud providers, particularly as established giants like Intel and AMD face increasing pressure from ARM architectures.

What advantages does ARM offer over x86?

ARM-based instances typically offer lower costs, energy efficiency, and can be tailored to meet specific processing needs, making them appealing to enterprises.

How will the market react to these changes?

The market is likely to see increased adoption of ARM technology as more cloud providers, including Azure, expand their services using customized CPUs, thus reshaping the competitive landscape.

What data does Liftr Insights provide?

Liftr Insights provides comprehensive market intelligence, offering insights into server configurations, deployment regions, and pricing data for processors and accelerators.

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