Searching for Iot space analysis

here’s a link to Mary Meeker’s 2016 Internet report presented last week, decent read:

If you like IoT, like AMZN, and like the REITS, folks can look at Digital Realty Trust, decent dividend and AMZN is one of their largest clients. I hold no position in DLR.


If you are interested in Data Center Reits either in Asia or globally these research publications could be of interest to you………

Equinix & Digital Realty are the biggest global players.

(Copied from my post on the REIT board:…)

If you like Dupont Fabros then this post could interest you……



Smorgasbord1 - you raised one other point in your post - the possibility of a new architecture overtaking ARM. As it happens there is a report out today on Barrons saying that this not expected to happen in the near future……

IBM are the only plausible alternative right now. Most of the rest of the players are actually developing chips off ARM licenses so one way or another it looks good for ARM.

They rate ARM for IOT but see servers getting pressured on pricing as ARM competes with Intel. If this happens Intel has more to lose than ARM has to gain but I still think it will be a net win for ARM.


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I used to think ARM for servers was an interesting channel, but then I had some interaction with a friend who happened to work for a company that was producing servers for the web/rack market who was just starting to make a name for themselves in low power consumption. In a phone or mobile device or IoT device, the low power consumption of the ARM architecture is compelling, but in a server there is lots of other stuff there consuming power and generating heat which makes the comparison less compelling. Thus, it make take gains in seemingly unrelated areas, like a really cheap, low power disk counterpart, to make the power advantages of ARM look compelling in the server realm. Plus, of course, one has to get an operating system running on them. That shouldn’t be a problem, but Windows is surprisingly sticky and getting real Windows (vs the joke of Windows RT) running there is not obvious.

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One of the complications of evaluating ARM is that they have two income streams, royalties on products shipped and licenses permitting customers to use their IP.

Have you looked at how average royalties per unit are doing? A while back they were on a continual decline. And how’s the licensing business doing? That makes sense as more of their business moves to non-CPU chips, which are smaller/cheaper - and that trend will only continue in the IoT world.

That may not be so bad, as volumes will increase, but it still doesn’t convince me that this is business poised for outsized returns any time soon.