Big Telcos Seeing Silver Lining

By Steve Campbell

February 2, 2011

This week’s massive news of mergers and acquisitions has seemed endless—and it’s only Tuesday…

The lightening round of M&A chatter began early with Verizon’s announcement that it would acquire datacenter giant Terremark. This was followed by the most recent news that cable giant Time Warner would take charge of NaviSite.

Like users of HPC, there is the constant burning question of “to build or to buy” for many telcos–at least there is that much in common.

These companies see the enhanced competitive advantage of cloud computing and the new customers it could bring on board. It’s already an incredibly tough competitive market for telcos and something tells me that as more realize that if they lag behind in infrastructure and modernization, their profits will reflect this in no time.

I have always liked Terremark’s unofficial motto of “if you build it they will come”—and come they did…Actually, come they will because this merger and acquisition steam on the part of telcos is far from over.

Verizon shelled out $1.4 billion for the company this week to jump-start its entry into the competitive IaaS playing field. A swift, bold move on the part of Verizon, for sure, but not the first.

Verizon also made a $642 million investment in the Keystone State, boosting their communications infrastructure as well as a similar big burst in Pennsylvania. Add this to another $814 million investment in Virginia landline infrastructure and you have yourself a startling portrait of a company that has finally realized its competitive advantages lie in its size and ability to mesh into a market that might finally be approaching the ready stage.

We have to ask, is this finally the beginning of the often-predicted consolidation of infrastructure for cloud computing? It might seem like there is a simple answer, but the difference here is important—the big telcos are making these moves to bolster their product and service offerings and to build out critical infrastructure—the all-important backbone for cloud computing. While we can speculate all day about what this means in terms of consolidation and the future of cloud landscape, one thing is certainly clear—big companies are seeing big value in the future of clouds.

This is bound to be the beginning of a swift cycle—and one that will doubtlessly be full of more surprises and companies like Verizon and Time Warner, too rich to bother building their own infrastructure, seek to capture the promise of cloud computing and richer communications opportunities.

Needless to say, it’s been a remarkable week for NaviSite folks as Time Warner coughed up $5.5 per share with an approximate total value in the $250 million range.  Just about a year ago I conducted a webinar on cloud security with NaviSite—it seemed to be such a short time ago that the well-deserving company would embark on a journey but who knew its partner on the road to new horizons would have been such a giant?

I imagine that there are plenty of small startups, green with envy as they imagine the NaviSite celebrations that are likely taking place this moment. But here’s what these folks behind similar startups might not be asking themselves—“what is our strategy? What is our value proposition, positioning and differentiation—where does this lie outside of our marketing speak?” … If there are not clear answers to these questions, if there is not a solid strategy in place, then success stories like NaviSite’s will remain just what they are—success stories, and uncommon ones at that.

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!

The EU Human Brain Project Reboots but Supercomputing Still Needed

June 26, 2017

The often contentious, EU-funded Human Brain Project whose initial aim was fixed firmly on full-brain simulation is now in the midst of a reboot targeting a more modest goal – development of informatics tools and data/ Read more…

By John Russell

DOE Launches Chicago Quantum Exchange

June 26, 2017

While many of us were preoccupied with ISC 2017 last week, the launch of the Chicago Quantum Exchange went largely unnoticed. So what is such a thing? It is a Department of Energy sponsored collaboration between the Univ Read more…

By John Russell

UMass Dartmouth Reports on HPC Day 2017 Activities

June 26, 2017

UMass Dartmouth's Center for Scientific Computing & Visualization Research (CSCVR) organized and hosted the third annual "HPC Day 2017" on May 25th. This annual event showcases on-going scientific research in Massach Read more…

By Gaurav Khanna

How ‘Knights Mill’ Gets Its Deep Learning Flops

June 22, 2017

Intel, the subject of much speculation regarding the delayed, rewritten or potentially canceled “Aurora” contract (the Argonne Lab part of the CORAL “pre-exascale” award), parsed out additional information ab Read more…

By Tiffany Trader

HPE Extreme Performance Solutions

Creating a Roadmap for HPC Innovation at ISC 2017

In an era where technological advancements are driving innovation to every sector, and powering major economic and scientific breakthroughs, high performance computing (HPC) is crucial to tackle the challenges of today and tomorrow. Read more…

Tsinghua Crowned Eight-Time Student Cluster Champions at ISC

June 22, 2017

Always a hard-fought competition, the Student Cluster Competition awards were announced Wednesday, June 21, at the ISC High Performance Conference 2017. Amid whoops and hollers from the crowd, Thomas Sterling presented t Read more…

By Kim McMahon

GPUs, Power9, Figure Prominently in IBM’s Bet on Weather Forecasting

June 22, 2017

IBM jumped into the weather forecasting business roughly a year and a half ago by purchasing The Weather Company. This week at ISC 2017, Big Blue rolled out plans to push deeper into climate science and develop more gran Read more…

By John Russell

Intersect 360 at ISC: HPC Industry at $44B by 2021

June 22, 2017

The care, feeding and sustained growth of the HPC industry increasingly is in the hands of the commercial market sector – in particular, it’s the hyperscale companies and their embrace of AI and deep learning – tha Read more…

By Doug Black

At ISC – Goh on Go: Humans Can’t Scale, the Data-Centric Learning Machine Can

June 22, 2017

I've seen the future this week at ISC, it’s on display in prototype or Powerpoint form, and it’s going to dumbfound you. The future is an AI neural network designed to emulate and compete with the human brain. In thi Read more…

By Doug Black

DOE Launches Chicago Quantum Exchange

June 26, 2017

While many of us were preoccupied with ISC 2017 last week, the launch of the Chicago Quantum Exchange went largely unnoticed. So what is such a thing? It is a D Read more…

By John Russell

How ‘Knights Mill’ Gets Its Deep Learning Flops

June 22, 2017

Intel, the subject of much speculation regarding the delayed, rewritten or potentially canceled “Aurora” contract (the Argonne Lab part of the CORAL “ Read more…

By Tiffany Trader

Tsinghua Crowned Eight-Time Student Cluster Champions at ISC

June 22, 2017

Always a hard-fought competition, the Student Cluster Competition awards were announced Wednesday, June 21, at the ISC High Performance Conference 2017. Amid wh Read more…

By Kim McMahon

GPUs, Power9, Figure Prominently in IBM’s Bet on Weather Forecasting

June 22, 2017

IBM jumped into the weather forecasting business roughly a year and a half ago by purchasing The Weather Company. This week at ISC 2017, Big Blue rolled out pla Read more…

By John Russell

Intersect 360 at ISC: HPC Industry at $44B by 2021

June 22, 2017

The care, feeding and sustained growth of the HPC industry increasingly is in the hands of the commercial market sector – in particular, it’s the hyperscale Read more…

By Doug Black

At ISC – Goh on Go: Humans Can’t Scale, the Data-Centric Learning Machine Can

June 22, 2017

I've seen the future this week at ISC, it’s on display in prototype or Powerpoint form, and it’s going to dumbfound you. The future is an AI neural network Read more…

By Doug Black

Cray Brings AI and HPC Together on Flagship Supers

June 20, 2017

Cray took one more step toward the convergence of big data and high performance computing (HPC) today when it announced that it’s adding a full suite of big d Read more…

By Alex Woodie

AMD Charges Back into the Datacenter and HPC Workflows with EPYC Processor

June 20, 2017

AMD is charging back into the enterprise datacenter and select HPC workflows with its new EPYC 7000 processor line, code-named Naples, announced today at a “g Read more…

By John Russell

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

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

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

CPU-based Visualization Positions for Exascale Supercomputing

March 16, 2017

In this contributed perspective piece, Intel’s Jim Jeffers makes the case that CPU-based visualization is now widely adopted and as such is no longer a contrarian view, but is rather an exascale requirement. Read more…

By Jim Jeffers, Principal Engineer and Engineering Leader, Intel

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

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

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 the successor to Caffe, the deep learning framework developed by Berkeley AI Research and community contributors. Read more…

By Tiffany Trader

Leading Solution Providers

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 Engine (GCE) job. Sutherland ran the massive mathematics workload on 220,000 GCE cores using preemptible virtual machine instances. Read more…

By Tiffany Trader

Google Debuts TPU v2 and will Add to Google Cloud

May 25, 2017

Not long after stirring attention in the deep learning/AI community by revealing the details of its Tensor Processing Unit (TPU), Google last week announced the Read more…

By John Russell

US Supercomputing Leaders Tackle the China Question

March 15, 2017

Joint DOE-NSA report responds to the increased global pressures impacting the competitiveness of U.S. supercomputing. Read more…

By Tiffany Trader

Russian Researchers Claim First Quantum-Safe Blockchain

May 25, 2017

The Russian Quantum Center today announced it has overcome the threat of quantum cryptography by creating the first quantum-safe blockchain, securing cryptocurrencies like Bitcoin, along with classified government communications and other sensitive digital transfers. Read more…

By Doug Black

Groq This: New AI Chips to Give GPUs a Run for Deep Learning Money

April 24, 2017

CPUs and GPUs, move over. Thanks to recent revelations surrounding Google’s new Tensor Processing Unit (TPU), the computing world appears to be on the cusp of Read more…

By Alex Woodie

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 advanced supercomputers. Read more…

By Tiffany Trader

Messina Update: The US Path to Exascale in 16 Slides

April 26, 2017

Paul Messina, director of the U.S. Exascale Computing Project, provided a wide-ranging review of ECP’s evolving plans last week at the HPC User Forum. Read more…

By John Russell

Six Exascale PathForward Vendors Selected; DoE Providing $258M

June 15, 2017

The much-anticipated PathForward awards for hardware R&D in support of the Exascale Computing Project were announced today with six vendors selected – AMD Read more…

By John Russell

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