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!

Hedge Funds (with Supercomputing help) Rank First Among Investors

May 22, 2017

In case you didn’t know, The Quants Run Wall Street Now, or so says a headline in today’s Wall Street Journal. Quant-run hedge funds now control the largest Read more…

By John Russell

IBM, D-Wave Report Quantum Computing Advances

May 18, 2017

IBM said this week it has built and tested a pair of quantum computing processors, including a prototype of a commercial version. That progress follows an an Read more…

By George Leopold

PRACEdays 2017 Wraps Up in Barcelona

May 18, 2017

Barcelona has been absolutely lovely; the weather, the food, the people. I am, sadly, finishing my last day at PRACEdays 2017 with two sessions: an in-depth loo Read more…

By Kim McMahon

US, Europe, Japan Deepen Research Computing Partnership

May 18, 2017

On May 17, 2017, a ceremony was held during the PRACEdays 2017 conference in Barcelona to announce the memorandum of understanding (MOU) between PRACE in Europe Read more…

By Tiffany Trader

HPE Extreme Performance Solutions

Exploring the Three Models of Remote Visualization

The explosion of data and advancement of digital technologies are dramatically changing the way many companies do business. With the help of high performance computing (HPC) solutions and data analytics platforms, manufacturers are developing products faster, healthcare providers are improving patient care, and energy companies are improving planning, exploration, and production. Read more…

NSF, IARPA, and SRC Push into “Semiconductor Synthetic Biology” Computing

May 18, 2017

Research into how biological systems might be fashioned into computational technology has a long history with various DNA-based computing approaches explored. N Read more…

By John Russell

DOE’s HPC4Mfg Leads to Paper Manufacturing Improvement

May 17, 2017

Papermaking ranks third behind only petroleum refining and chemical production in terms of energy consumption. Recently, simulations made possible by the U.S. D Read more…

By John Russell

PRACEdays 2017: The start of a beautiful week in Barcelona

May 17, 2017

Touching down in Barcelona on Saturday afternoon, it was warm, sunny, and oh so Spanish. I was greeted at my hotel with a glass of Cava to sip and treated to a Read more…

By Kim McMahon

NSF Issues $60M RFP for “Towards a Leadership-Class” System

May 16, 2017

In case you missed it, the National Science Foundation issued the request for proposals (RFP) for the next ‘Towards a Leadership-Class Computing Facility – Read more…

By John Russell

Cray Offers Supercomputing as a Service, Targets Biotechs First

May 16, 2017

Leading supercomputer vendor Cray and datacenter/cloud provider the Markley Group today announced plans to jointly deliver supercomputing as a service. The init Read more…

By John Russell

HPE’s Memory-centric The Machine Coming into View, Opens ARMs to 3rd-party Developers

May 16, 2017

Announced three years ago, HPE’s The Machine is said to be the largest R&D program in the venerable company’s history, one that could be progressing tow Read more…

By Doug Black

What’s Up with Hyperion as It Transitions From IDC?

May 15, 2017

If you’re wondering what’s happening with Hyperion Research – formerly the IDC HPC group – apparently you are not alone, says Steve Conway, now senior V Read more…

By John Russell

Nvidia’s Mammoth Volta GPU Aims High for AI, HPC

May 10, 2017

At Nvidia's GPU Technology Conference (GTC17) in San Jose, Calif., this morning, CEO Jensen Huang announced the company's much-anticipated Volta architecture a Read more…

By Tiffany Trader

HPE Launches Servers, Services, and Collaboration at GTC

May 10, 2017

Hewlett Packard Enterprise (HPE) today launched a new liquid cooled GPU-driven Apollo platform based on SGI ICE architecture, a new collaboration with NVIDIA, a Read more…

By John Russell

IBM PowerAI Tools Aim to Ease Deep Learning Data Prep, Shorten Training 

May 10, 2017

A new set of GPU-powered AI software announced by IBM today brings automation to many of the tedious, time consuming and complex aspects of AI project on-rampin Read more…

By Doug Black

Bright Computing 8.0 Adds Azure, Expands Machine Learning Support

May 9, 2017

Bright Computing, long a prominent provider of cluster management tools for HPC, today released version 8.0 of Bright Cluster Manager and Bright OpenStack. The Read more…

By John Russell

Microsoft Azure Will Debut Pascal GPU Instances This Year

May 8, 2017

As Nvidia's GPU Technology Conference gets underway in San Jose, Calif., Microsoft today revealed plans to add Pascal-generation GPU horsepower to its Azure clo Read more…

By Tiffany Trader

Quantum Bits: D-Wave and VW; Google Quantum Lab; IBM Expands Access

March 21, 2017

For a technology that’s usually characterized as far off and in a distant galaxy, quantum computing has been steadily picking up steam. Just how close real-wo Read more…

By John Russell

Google Pulls Back the Covers on Its First Machine Learning Chip

April 6, 2017

This week Google released a report detailing the design and performance characteristics of the Tensor Processing Unit (TPU), its custom ASIC for the inference Read more…

By Tiffany Trader

Trump Budget Targets NIH, DOE, and EPA; No Mention of NSF

March 16, 2017

President Trump’s proposed U.S. fiscal 2018 budget issued today sharply cuts science spending while bolstering military spending as he promised during the cam Read more…

By John Russell

HPC Compiler Company PathScale Seeks Life Raft

March 23, 2017

HPCwire has learned that HPC compiler company PathScale has fallen on difficult times and is asking the community for help or actively seeking a buyer for its a Read more…

By Tiffany Trader

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Last week, Google reported that its custom ASIC Tensor Processing Unit (TPU) was 15-30x faster for inferencing workloads than Nvidia's K80 GPU (see our coverage Read more…

By Tiffany Trader

CPU-based Visualization Positions for Exascale Supercomputing

March 16, 2017

Since our first formal product releases of OSPRay and OpenSWR libraries in 2016, CPU-based Software Defined Visualization (SDVis) has achieved wide-spread adopt Read more…

By Jim Jeffers, Principal Engineer and Engineering Leader, Intel

TSUBAME3.0 Points to Future HPE Pascal-NVLink-OPA Server

February 17, 2017

Since our initial coverage of the TSUBAME3.0 supercomputer yesterday, more details have come to light on this innovative project. Of particular interest is a ne Read more…

By Tiffany Trader

Facebook Open Sources Caffe2; Nvidia, Intel Rush to Optimize

April 18, 2017

From its F8 developer conference in San Jose, Calif., today, Facebook announced Caffe2, a new open-source, cross-platform framework for deep learning. Caffe2 is Read more…

By Tiffany Trader

Leading Solution Providers

Nvidia’s Mammoth Volta GPU Aims High for AI, HPC

May 10, 2017

At Nvidia's GPU Technology Conference (GTC17) in San Jose, Calif., this morning, CEO Jensen Huang announced the company's much-anticipated Volta architecture a Read more…

By Tiffany Trader

Tokyo Tech’s TSUBAME3.0 Will Be First HPE-SGI Super

February 16, 2017

In a press event Friday afternoon local time in Japan, Tokyo Institute of Technology (Tokyo Tech) announced its plans for the TSUBAME3.0 supercomputer, which w Read more…

By Tiffany Trader

Is Liquid Cooling Ready to Go Mainstream?

February 13, 2017

Lost in the frenzy of SC16 was a substantial rise in the number of vendors showing server oriented liquid cooling technologies. Three decades ago liquid cooling Read more…

By Steve Campbell

MIT Mathematician Spins Up 220,000-Core Google Compute Cluster

April 21, 2017

On Thursday, Google announced that MIT math professor and computational number theorist Andrew V. Sutherland had set a record for the largest Google Compute Eng Read more…

By Tiffany Trader

IBM Wants to be “Red Hat” of Deep Learning

January 26, 2017

IBM today announced the addition of TensorFlow and Chainer deep learning frameworks to its PowerAI suite of deep learning tools, which already includes popular Read more…

By John Russell

HPC Technique Propels Deep Learning at Scale

February 21, 2017

Researchers from Baidu's Silicon Valley AI Lab (SVAIL) have adapted a well-known HPC communication technique to boost the speed and scale of their neural networ Read more…

By Tiffany Trader

US Supercomputing Leaders Tackle the China Question

March 15, 2017

As China continues to prove its supercomputing mettle via the Top500 list and the forward march of its ambitious plans to stand up an exascale machine by 2020, Read more…

By Tiffany Trader

DOE Supercomputer Achieves Record 45-Qubit Quantum Simulation

April 13, 2017

In order to simulate larger and larger quantum systems and usher in an age of "quantum supremacy," researchers are stretching the limits of today's most advance Read more…

By Tiffany Trader

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