The HPC Cloud Must Validate ROI with (Better) Econometric Models

By Earl Dodd

December 6, 2010

Four decades ago, NASA faced criticism the Apollo program was costing U.S. taxpayers too much money without providing any practical returns on investment. With help from the Office of Management and Budget, NASA countered these accusations by creating econometric models showing a positive payout to the American economy in the form of valuable new technologies and commercial products resulting from every dollar invested in the space program.

The HPC Cloud industry needs to follow NASA’s lead.

Those of us inside the industry understand that high performance computing (HPC) technology in the cloud is causing a paradigm shift across the entire computing community. The cloud has put HPC within reach of organizations and market segments that previously could not afford to access a supercomputer, much less think about investing in their own. Today, HPC Cloud technology is enhancing productivity and efficiency in businesses as diverse as manufacturing, precision agriculture, and retail sales.

Since almost anyone can understand the positive impact the purchase of a personal computer has on the productivity of an employee, most people can also comprehend the increase in crop yield that results from a farmer applying fertilizer more efficiently. Unfortunately, few people, if any, stop to consider – or quantify – the macroeconomic payoff that can occur across a county, state or region if dozens of farmers can multiply their yields with the help of high performance computers and vast amounts of data.

We face much the same challenge as NASA: computing infrastructure is generally and simply viewed as a cost center instead of a strategic asset. Our call to action as professionals should be to help the general populous begin to realize that investments in an HPC Cloud cyberinfrastructure are factors of production with the potential to drive the economy, enhance competitiveness and promote prosperity at the local, regional and national levels.

In other words, we must find a way to show that every dollar invested in an HPC Cloud cyberinfrastructure – whether the investment is made by government, academia or business – yields dividends to the economy as a whole in terms of higher business profits, more jobs saved or created, and faster re-investment in classic capital goods. The bottom line is that we need these econometric models to help demonstrate that HPC, especially for the on-demand environment, is a viable tool for economic development.

Once developed, these models would produce benefits that would resonate throughout our industry and our nation. Imagine how much easier it would be to convince the local economic development council to invest in a regional HPC center if we could quantify its impact (directly and indirectly) on skilled jobs and growth within its jurisdiction over time. Likewise, what would the reaction be in a state if it could generate millions in annual savings by running its best-suited government applications on their HPC Cloud?

To the best of my knowledge, there are currently no econometric models that quantify the macroeconomic ROI of expenditures on high performance computing hardware and software. The most likely reason for this is that such models would be extremely complex and difficult to develop. Creating them, however, is not impossible. It will require us to reach out to the economists who build such models and help them to understand more thoroughly what HPC technology is and how it positively impacts classic factors of production that are basic to economic growth and prosperity.

The next logical question is “How do we make this a reality?”

My suggestion is for the HPC Cloud community at large–including vendors of hardware, software, and services, as well as operators, relevant trade associations, and government itself – to join with leading economists in a summit to build a road map that will guide us in developing these models. An unbiased and supportive party, such as the U.S. Council on Competitiveness, could play host to these discussions and ensure the dialogue among economists, HPC techies continues, and industries keep on track. 

Montana’s Senior Senator, Max Baucus, has expressed his support of this call to action: “Rocky Mountain Supercomputing Centers help us to attract business and jobs to Montana. I welcome any additional efforts to bring industry leaders together to enhance high performance computing technology and create new opportunities to move the economy forward and create good-paying jobs.”

——

Please leave comments below or contact Mr. Dodd directly at earl.dodd@rmscinc.org

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

HOKUSAI’s BigWaterfall Cluster Extends RIKEN’s Supercomputing Performance

February 21, 2018

RIKEN, Japan’s largest comprehensive research institution, recently expanded the capacity and capabilities of its HOKUSAI supercomputer, a key resource managed by the institution’s Advanced Center for Computing and C Read more…

By Ken Strandberg

Neural Networking Shows Promise in Earthquake Monitoring

February 21, 2018

A team of Harvard University and MIT researchers report their new neural networking method for monitoring earthquakes is more accurate and orders of magnitude faster than traditional approaches. Read more…

By John Russell

HPE Wins $57 Million DoD Supercomputing Contract

February 20, 2018

Hewlett Packard Enterprise (HPE) today revealed details of its massive $57 million HPC contract with the U.S. Department of Defense (DoD). The deal calls for HPE to provide the DoD High Performance Computing Modernizatio Read more…

By Tiffany Trader

HPE Extreme Performance Solutions

Experience Memory & Storage Solutions that will Transform Your Data Performance

High performance computing (HPC) has revolutionized the way we harness insight, leading to a dramatic increase in both the size and complexity of HPC systems. Read more…

Topological Quantum Superconductor Progress Reported

February 20, 2018

Overcoming sensitivity to decoherence is a persistent stumbling block in efforts to build effective quantum computers. Now, a group of researchers from Chalmers University of Technology (Sweden) report progress in devisi Read more…

By John Russell

HOKUSAI’s BigWaterfall Cluster Extends RIKEN’s Supercomputing Performance

February 21, 2018

RIKEN, Japan’s largest comprehensive research institution, recently expanded the capacity and capabilities of its HOKUSAI supercomputer, a key resource manage Read more…

By Ken Strandberg

Neural Networking Shows Promise in Earthquake Monitoring

February 21, 2018

A team of Harvard University and MIT researchers report their new neural networking method for monitoring earthquakes is more accurate and orders of magnitude faster than traditional approaches. Read more…

By John Russell

HPE Wins $57 Million DoD Supercomputing Contract

February 20, 2018

Hewlett Packard Enterprise (HPE) today revealed details of its massive $57 million HPC contract with the U.S. Department of Defense (DoD). The deal calls for HP Read more…

By Tiffany Trader

Fluid HPC: How Extreme-Scale Computing Should Respond to Meltdown and Spectre

February 15, 2018

The Meltdown and Spectre vulnerabilities are proving difficult to fix, and initial experiments suggest security patches will cause significant performance penal Read more…

By Pete Beckman

Brookhaven Ramps Up Computing for National Security Effort

February 14, 2018

Last week, Dan Coats, the director of Director of National Intelligence for the U.S., warned the Senate Intelligence Committee that Russia was likely to meddle in the 2018 mid-term U.S. elections, much as it stands accused of doing in the 2016 Presidential election. Read more…

By John Russell

AI Cloud Competition Heats Up: Google’s TPUs, Amazon Building AI Chip

February 12, 2018

Competition in the white hot AI (and public cloud) market pits Google against Amazon this week, with Google offering AI hardware on its cloud platform intended Read more…

By Doug Black

Russian Nuclear Engineers Caught Cryptomining on Lab Supercomputer

February 12, 2018

Nuclear scientists working at the All-Russian Research Institute of Experimental Physics (RFNC-VNIIEF) have been arrested for using lab supercomputing resources to mine crypto-currency, according to a report in Russia’s Interfax News Agency. Read more…

By Tiffany Trader

The Food Industry’s Next Journey — from Mars to Exascale

February 12, 2018

Global food producer and one of the world's leading chocolate companies Mars Inc. has a unique perspective on the impact that exascale computing will have on the food industry. Read more…

By Scott Gibson, Oak Ridge National Laboratory

Inventor Claims to Have Solved Floating Point Error Problem

January 17, 2018

"The decades-old floating point error problem has been solved," proclaims a press release from inventor Alan Jorgensen. The computer scientist has filed for and Read more…

By Tiffany Trader

Japan Unveils Quantum Neural Network

November 22, 2017

The U.S. and China are leading the race toward productive quantum computing, but it's early enough that ultimate leadership is still something of an open questi Read more…

By Tiffany Trader

AMD Showcases Growing Portfolio of EPYC and Radeon-based Systems at SC17

November 13, 2017

AMD’s charge back into HPC and the datacenter is on full display at SC17. Having launched the EPYC processor line in June along with its MI25 GPU the focus he Read more…

By John Russell

Researchers Measure Impact of ‘Meltdown’ and ‘Spectre’ Patches on HPC Workloads

January 17, 2018

Computer scientists from the Center for Computational Research, State University of New York (SUNY), University at Buffalo have examined the effect of Meltdown Read more…

By Tiffany Trader

IBM Begins Power9 Rollout with Backing from DOE, Google

December 6, 2017

After over a year of buildup, IBM is unveiling its first Power9 system based on the same architecture as the Department of Energy CORAL supercomputers, Summit a Read more…

By Tiffany Trader

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

Fast Forward: Five HPC Predictions for 2018

December 21, 2017

What’s on your list of high (and low) lights for 2017? Volta 100’s arrival on the heels of the P100? Appearance, albeit late in the year, of IBM’s Power9? Read more…

By John Russell

Russian Nuclear Engineers Caught Cryptomining on Lab Supercomputer

February 12, 2018

Nuclear scientists working at the All-Russian Research Institute of Experimental Physics (RFNC-VNIIEF) have been arrested for using lab supercomputing resources to mine crypto-currency, according to a report in Russia’s Interfax News Agency. Read more…

By Tiffany Trader

Leading Solution Providers

Chip Flaws ‘Meltdown’ and ‘Spectre’ Loom Large

January 4, 2018

The HPC and wider tech community have been abuzz this week over the discovery of critical design flaws that impact virtually all contemporary microprocessors. T Read more…

By Tiffany Trader

Perspective: What Really Happened at SC17?

November 22, 2017

SC is over. Now comes the myriad of follow-ups. Inboxes are filled with templated emails from vendors and other exhibitors hoping to win a place in the post-SC thinking of booth visitors. Attendees of tutorials, workshops and other technical sessions will be inundated with requests for feedback. Read more…

By Andrew Jones

How Meltdown and Spectre Patches Will Affect HPC Workloads

January 10, 2018

There have been claims that the fixes for the Meltdown and Spectre security vulnerabilities, named the KPTI (aka KAISER) patches, are going to affect applicatio Read more…

By Rosemary Francis

GlobalFoundries, Ayar Labs Team Up to Commercialize Optical I/O

December 4, 2017

GlobalFoundries (GF) and Ayar Labs, a startup focused on using light, instead of electricity, to transfer data between chips, today announced they've entered in Read more…

By Tiffany Trader

Tensors Come of Age: Why the AI Revolution Will Help HPC

November 13, 2017

Thirty years ago, parallel computing was coming of age. A bitter battle began between stalwart vector computing supporters and advocates of various approaches to parallel computing. IBM skeptic Alan Karp, reacting to announcements of nCUBE’s 1024-microprocessor system and Thinking Machines’ 65,536-element array, made a public $100 wager that no one could get a parallel speedup of over 200 on real HPC workloads. Read more…

By John Gustafson & Lenore Mullin

Flipping the Flops and Reading the Top500 Tea Leaves

November 13, 2017

The 50th edition of the Top500 list, the biannual publication of the world’s fastest supercomputers based on public Linpack benchmarking results, was released Read more…

By Tiffany Trader

V100 Good but not Great on Select Deep Learning Aps, Says Xcelerit

November 27, 2017

Wringing optimum performance from hardware to accelerate deep learning applications is a challenge that often depends on the specific application in use. A benc Read more…

By John Russell

SC17: Singularity Preps Version 3.0, Nears 1M Containers Served Daily

November 1, 2017

Just a few months ago about half a million jobs were being run daily using Singularity containers, the LBNL-founded container platform intended for HPC. That wa Read more…

By John Russell

  • arrow
  • Click Here for More Headlines
  • arrow
Share This