The thing that’s interesting for us as we roll forward, is we’re actually designing our next-gen silicon in such a way that it works great for playing games in the cloud, and also works very well for machine learning and other non-entertainment workloads. As a company like Microsoft, we can dual-purpose the silicon that we’re putting in.
We have a consumer use for that silicon, and we have enterprise use for those blades as well. It all in our space around driving down the cost to serve. Your cost to serve is made up by two things, how much was the hardware, and how much time does that hardware monetize.
So if we can monetize that hardware over more cycles in the 24 hours through game streaming and other things that need CPU and GPU in the cloud, we will drive down the cost to serve in our services. So the design as we move forward is done hand-in-hand with the Azure silicon team, and I think that creates a real competitive advantage.”
Spencer concluded by talking about the issue of latency while streaming games. He mentioned that he’s already streaming games while he’s on the road around the world, and the test servers for Project xCloud are still in Washington, but Azure has a global scale.