{"id":33588,"date":"2023-10-07T03:00:00","date_gmt":"2023-10-07T10:00:00","guid":{"rendered":"https:\/\/insidebigdata.com\/?p=33588"},"modified":"2023-10-04T13:42:13","modified_gmt":"2023-10-04T20:42:13","slug":"microsofts-quest-for-the-next-killer-app","status":"publish","type":"post","link":"https:\/\/insidebigdata.com\/2023\/10\/07\/microsofts-quest-for-the-next-killer-app\/","title":{"rendered":"Microsoft\u2019s Quest for the Next Killer App"},"content":{"rendered":"\n

In January, we saw a financial dip in cloud revenue across cloud providers, with Microsoft\u2019s earnings missing\u00a0Wall Street estimates<\/a>\u00a0at the end of 2022. But rather than rest on its laurels, the company was already looking ahead to the next big thing, a shift in technology bigger than the launch of public cloud itself. The revelation it would be investing an additional $10 billion into OpenAI initially shocked the industry; however, it now makes perfect sense.<\/p>\n\n\n\n

Microsoft\u2019s investment into OpenAI was a clear move for the company to align itself with the next killer app that would drive engagement on Azure cloud. <\/p>\n\n\n\n

For the last few months, ChatGPT has been the talk of the tech industry. Running on generative AI, it uses OpenAI\u2019s large language model, GPT-3, and more recently, GPT-4, to create convincing responses to users\u2019 prompts. From quickly drafted content to easy-to-read summaries of large and complex datasets, the potential of the technology has captivated many. In education, we\u2019ve seen\u00a0professors divided<\/a>\u00a0about whether or not students should be allowed to use ChatGPT in their work. German publishing firm\u00a0Axel Springer<\/a>\u00a0has gone one step further, announcing that it\u2019s looking to use AI to streamline and replace the role of its journalists.\u00a0<\/p>\n\n\n\n

What\u2019s certain is that ChatGPT has started a new conversation about the capabilities of AI and its future implications for people at both a personal and enterprise level. <\/p>\n\n\n\n

The new battleground of search<\/strong><\/p>\n\n\n\n

Google has long been considered synonymous with internet search. However, ChatGPT is Microsoft\u2019s master move to overthrow this dominance. Marketing the capability as \u2018your copilot for the web\u2019, Microsoft has been keen to show users that it can offer more relevant and specific searches to curate the internet with\u00a0Bing AI<\/a>.<\/p>\n\n\n\n

Initial responses have shown that this tactic could be fruitful for Microsoft.\u00a0According to UBS<\/a>, ChatGPT reached 100 million active users in January \u2013 making it the fastest-growing app in history. Whilst this is not currently a threat to Google, which claims around 92% of the search engine\u00a0market share<\/a>, the rapid uptake of the app indicates to many that Bing\u2019s market share will grow. And as the app grows, so will the compute activity on the Azure platform.\u00a0The strategy appears to be to drive demand for compute generated by Amazon\u2019s leading Cloud business \u2013 AWS and its commercial eCommerce platform, or Google\u2019s Cloud business – GCP, as well as its search engine and advertising business.<\/p>\n\n\n\n

The competition is on to become the front-runner in the new search wars. Despite Microsoft\u2019s head start, following the disappointing\u00a0early demo<\/a>\u00a0of Bard, which wiped $100 billion off Google\u2019s share price, Google has announced the launch of PaLM 2. It is being presented as a so-called \u2018family of models\u2019 that will power the updated iteration of Bard and is said to focus more on capabilities such as common sense, logic, maths and reasoning rather than size. These developments will likely improve the model\u2019s ability to write and debug code, for example, highlighting its enhanced real-world applications. We\u2019ve also seen Amazon enter the race with Amazon Bedrock<\/a>, a serverless way for users to build and scale generative AI-based applications using foundation models powered by AWS tools. The space is rife with innovation, and only time will tell who will come out on top.<\/p>\n\n\n\n

Beyond search \u2013 ChatGPT and the Microsoft ecosystem<\/strong><\/p>\n\n\n\n

Since its announcement, ChatGPT has become a huge asset for Microsoft by incorporating it into its offerings. The latest addition is the integration of ChatGPT into\u00a0Microsoft 365<\/a>, which has been termed Copilot. Capabilities include creating PowerPoint presentations, including images, from prompts, analysing email threads and documents, analysing datasets and creating graphs in Excel. The value of this is cutting through repetitive and time-consuming tasks and freeing human workers to focus on more high-value activities.<\/p>\n\n\n\n

In data management, many are looking for the use cases of generative AI for datasets. Being able to source data and filter out information effectively is of key concern for enterprises. ChatGPT offers key summaries of datasets, so organisations hope the technology will increase efficiency by helping workers access information quickly and effectively. Additional capabilities are being explored for using the model to analyse large and complex datasets running on a company\u2019s own data.<\/p>\n\n\n\n

We\u2019ve also seen other integrations, such as with GitHub\u2019s Copilot<\/a> tool, which suggests lines of code and functions in real time. Like Copilot for Microsoft 365, the software aids developers by cutting down time spent on repetitive code patterns by suggesting code to implement solutions described by the developers. This enables them to spend more time using their skills to develop logic instead of writing repetitive code.\u00a0<\/p>\n\n\n\n

A closer look at the semantics of the OpenAI-Microsoft deal reveals that Microsoft is now connected with OpenAI\u2019s own ecosystem of AI start-ups, backed by OpenAI\u2019s $100 million Start-up Fund. Access to these new firms allows Microsoft to invest, support their growth, and ultimately provide them access to Microsoft Azure to grow their products. Combined with the 75-79 per cent of OpenAI\u2019s revenue that Microsoft will gain until their debt is paid off, at which point they\u2019ll become a 49 per cent shareholder, it\u2019s clear to see how this deal greatly benefits Microsoft.<\/p>\n\n\n\n

It appears Microsoft is making a play for the title of the home of future AI innovation. As they enable businesses to build their applications leveraging the latest AI technology, the organisation is gradually positioning itself as the ideal partner to generate results through innovation \u2013 ultimately driving more users to its Azure platform, aligning with its overall strategy. <\/p>\n\n\n\n

Moving into the fourth industrial revolution<\/strong><\/p>\n\n\n\n

2023 appears to be the year of the new era for AI. ChatGPT is the first publicly available iteration of AGI, a form of AI intended to be smarter than us, and it\u2019s proven to be successful with users. We\u2019ve not only seen its widespread uptake, but with the release of GPT-4, the hype is unlikely to die soon. <\/p>\n\n\n\n

As developments continue, we\u2019ll see a wave of new enhanced capabilities that can support more complex use cases and shepherd in the next-generation technologies of The Fourth Industrial Revolution. With their OpenAI partnership, Microsoft has given itself access to the next big thing in tech, and it\u2019s likely the investment will pay off through reliable revenue across the next decade. <\/p>\n\n\n\n

About the Author<\/strong><\/p>\n\n\n

\n
\"\"<\/figure><\/div>\n\n\n

Gordon McKenna, is VP of Cloud Evangelist & Alliances at technology adviser and managed services provider,\u00a0Ensono<\/a>. Gordon\u2019s 25-year career spans legacy IT such as mainframe and midrange, transform to the cloud, and leadership roles in some of the largest Microsoft public and Private cloud infrastructure projects in the US and EMEA. He is also a well-known speaker on the Public Cloud presentation circuit, having spent 17 years as a Microsoft MVP. He is passionate about technology and regularly lends his thoughts, learnings, and perspective online to inspire others to be passionate too.<\/em><\/p>\n\n\n\n

Sign up for the free insideBIGDATA newsletter<\/a>.<\/em><\/p>\n\n\n\n

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Join us on Facebook: https:\/\/www.facebook.com\/insideBIGDATANOW<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

In this contributed article, Gordon McKenna, VP of Cloud Evangelist & Alliances at Ensono, discusses the situation with Microsoft strongly backing OpenAI, what can we expect the future to look like? Microsoft\u2019s investment into OpenAI was a clear move for the company to align itself with the next killer app that would drive engagement on Azure cloud.\u00a0<\/p>\n","protected":false},"author":10531,"featured_media":33058,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[526,115,182,180,67,268,56,97,1],"tags":[1254,847,949,96],"acf":[],"yoast_head":"\nMicrosoft\u2019s Quest for the Next Killer App - insideBIGDATA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebigdata.com\/2023\/10\/07\/microsofts-quest-for-the-next-killer-app\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Microsoft\u2019s Quest for the Next Killer App - insideBIGDATA\" \/>\n<meta property=\"og:description\" content=\"In this contributed article, Gordon McKenna, VP of Cloud Evangelist & Alliances at Ensono, discusses the situation with Microsoft strongly backing OpenAI, what can we expect the future to look like? 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For this installment, we bring you the second episode of Fireside Chatbots featuring Greylock general partner Reid Hoffman\u2026","rel":"","context":"In "AI Deep Learning"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/insidebigdata.com\/wp-content\/uploads\/2023\/01\/Podcast_shutterstock_612194837.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":32577,"url":"https:\/\/insidebigdata.com\/2023\/06\/11\/insidebigdatapodcast-should-we-and-can-we-put-the-brakes-on-artificial-intelligence\/","url_meta":{"origin":33588,"position":2},"title":"#insideBIGDATApodcast:\u00a0Should We, and Can We, Put the Brakes on Artificial Intelligence?","date":"June 11, 2023","format":false,"excerpt":"Appearing on the New Yorker Radio Hour, Sam Altman, CEO of OpenAI, which created ChatGPT, says that AI is a powerful tool that will streamline human work and quicken the pace of scientific advancement.\u00a0But ChatGPT has both enthralled and terrified us, and even some of AI\u2019s pioneers are freaked out\u2026","rel":"","context":"In "AI Deep Learning"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/insidebigdata.com\/wp-content\/uploads\/2023\/01\/Podcast_shutterstock_612194837.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":32095,"url":"https:\/\/insidebigdata.com\/2023\/04\/12\/latest-version-of-zilliz-cloud-aims-to-cure-ai-hallucinations\/","url_meta":{"origin":33588,"position":3},"title":"Latest Version of Zilliz Cloud Aims to Cure AI \u2018Hallucinations\u2019","date":"April 12, 2023","format":false,"excerpt":"Zilliz Cloud is the managed service from\u00a0Zilliz, the inventors of Milvus, the open source vector database used by more than 1,000 enterprises around the world. It\u2019s purpose-built for AI and other applications powered by unstructured data. It represents data as high-dimensional vectors, or embeddings \u2014 the kind generated by machine-learning\u2026","rel":"","context":"In "AI Deep Learning"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":31884,"url":"https:\/\/insidebigdata.com\/2023\/03\/17\/video-highlights-gpt-4-developer-livestream\/","url_meta":{"origin":33588,"position":4},"title":"Video Highlights: GPT-4 Developer Livestream","date":"March 17, 2023","format":false,"excerpt":"Here is Greg Brockman, President and Co-Founder of OpenAI, for a March 14, 2023 developer demo showcasing GPT-4 and some of its capabilities\/limitations. 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