What is Neocloud?

Neocloud

In tech terms, a neocloud is a new breed of cloud infrastructure purpose-built for AI and high-performance computing (HPC).

Unlike traditional hyperscale cloud providers (like AWS or Azure), neoclouds focus on delivering raw GPU power, low-latency performance, and specialised environments for compute-intensive workloads.

đź§  Key Features of Neoclouds

  • GPU-as-a-Service (GPUaaS): Optimised for training and running large AI models.
  • AI-native architecture: Designed specifically for machine learning, deep learning, and real-time inference.
  • Edge-ready: Supports distributed deployments closer to users for faster response times.
  • Transparent pricing: Often more cost-efficient than hyperscalers for AI workloads.
  • Bare-metal access: Minimal virtualisation for maximum performance.

🏗️ How They Differ from Traditional Clouds

FeatureNeocloudsHyperscale Clouds
FocusAI & HPC workloadsGeneral-purpose services
HardwareGPU-centric, high-density clustersMixed CPU/GPU, broad service range
FlexibilityAgile, workload-specificBroad but less specialised
LatencyUltra-low, edge-optimizedHigher, centralized infrastructure
PricingUsage-based, transparentOften complex, with hidden costs

🚀 Who Uses Neoclouds?

  • AI startups building chatbots, LLMs, or recommendation engines
  • Research labs running simulations or genomics
  • Media studios doing real-time rendering or VFX
  • Enterprises deploying private AI models or edge computing

Think of neoclouds as specialist GPU clouds—like a high-performance race car compared to a family SUV.

Both get you places, but one’s built for speed, precision, and specialised terrain.

Microsoft shares drop on cloud miss as Azure revenue disappoints

In the cloud

Microsoft reported better-than-expected earnings and revenue for Q4

In extended trading on 30th July 2024, the stock experienced a quick decline as attention was drawn to the less-than-expected Azure revenue, despite management’s forecast for growth in the upcoming quarters.

The company’s total revenue saw a 15% increase compared to the previous year.

Despite surpassing earnings and revenue expectations, Microsoft’s shares dropped by up to 7% in extended trading on Tuesday, with investors concentrating on the underwhelming cloud revenue. However, executives offered a positive outlook, anticipating an acceleration in cloud growth during the first half of 2025.

Microsoft one day chart 30th July 2024

Microsoft one day chart 30th July 2024

Microsoft’s cloud division holds significant interest for investors, as it competes with Amazon Web Services (AWS) and Google in the artificial intelligence (AI) work arena. These three tech giants are pouring substantial resources into enhancing AI capabilities, aiming to attract both startups and established companies as generative AI technology swiftly progresses.

For Amazon, AWS has served as a vital profit centre for the past ten years.

Microsoft closes at all-time high

Microsoft closes at all-time high

Microsoft ended Tuesday’s trading session at a record high of $360.53, following fresh optimism about growth from a key partner in artificial intelligence (AI). The increase gives the company a market value of about $2.68 trillion.

At a tech event on Monday 6th November 2023, Microsoft’s AI partner, OpenAI, announced a batch of updates, including price cuts and plans to allow people to make custom versions of the ChatGPT chatbot.

Microsoft CEO Satya Nadella attended and emphasized that developers building applications with OpenAI’s tools could get to market quickly by deploying their software on Microsoft’s Azure cloud infrastructure.

Microsoft has invested a reported $13 billion in OpenAI, which has granted Microsoft an exclusive licence on OpenAI’s GPT-4 large language model that can generate human-like prose in response to a few words of text.

Chatbot
Fictitious AI robot learning from a digital human online

Last week, Microsoft announced the release of an AI add-on for its Office productivity app subscriptions and an assistant in Windows 11, both of which rely on OpenAI models.

The future is looking bright for Microsoft right now.