2012 Cloud Forecast

By Oleg Komissarov, Vice President, Enterprise Solutions

December 15, 2011

Not surprisingly, cloud computing will remain a hot topic in 2012. Leading Platform-as-a-Service providers will keep investing billions in huge datacenters with megawatts of power capacity. Software-as-a-Service platform development will be a main goal for software and Internet industry leaders and enterprises will all weigh in on the best approaches for adoption versus adaption to cloud strategies. 2011 may have been cloud’s fifth birthday, but in 2012, the six-year-old will start making a truly distinctive name for itself.

On the PaaS and IaaS fronts, datacenter players continue their global foothold. Microsoft will invest additional $150 million to expand new datacenters in Southern Virginia even as it is still completing the $499 million first phase of the project. Overall the company will invest $900 million in datacenters in US and Ireland in 2012 alone. Meanwhile, Google is expected to establish a $600 million datacenter in Oklahoma, $100 million in Ireland and worldwide datacenters in Singapore, Taiwan and Hong Kong. IBM proposed a 620,000 sq ft datacenter in Langfang, China which will provide infrastructure for exploding business growing in China and host numerous e-government services for food and drug safety systems, electronic medical records and other government projects. Microsoft, Google Yahoo, Amazon and Facebook building data centers to support expanding range of their Internet services, support ever growing demand of file sharing (image, video and documents). But what is more important, they are betting on growth of popularity of their Platform as a Service and Application as a Service platforms. Higher number of Projects completed for our customers on PaaS and SaaS platforms in 2011 comparing to 2010 year confirms this trend. We expect that number of such projects will be tripled in 2012 and making all preparations on our side to support this demand. Because of the shortage of Cloud specialists on the market we are increasing our investments in specialists training and certification.

Software-as-a-Service platform development is another ubiquitous venture that has legacy stakeholders and impressive novices buzzing. So far the Salesforce platform remains the most mature SaaS platform especially after the Herocu acquisition, but the picture will change and new players will step in. The major shift to watch will be Facebook actively moving to Software-as-a-Service solution providers. Currently, they are building their own $450 million datacenter in North Carolina and opened new development center in New York where they want to hire “as many developers as possible.”

“Our future looks bright; we want the next Facebook to start here, in New York City,” said Sheryl Sandberg, Facebook chief operating officer. Facebook will also probably start building Business applications and APIs for its highly-scalable social networking platform under the impression of Salesforce CRM success and will actively push “Social Enterprise” ideology globally.

Aiming to improve performance, scalability and quality of SaaS software and also due to “cloud buzz,” enterprise leaders will start building strategies of adoption of cloud technologies. But SaaS platforms are still young and do not provide required software components for line of business applications. They will also face other challenges, such as licensing issues, impact of regulatory restrictions, cost justifications, and interoperability/integration with legacy solutions.

Even for IaaS platforms, there are many limitations. In the financial industry for example, broker-dealers have been regulated by the SEC (Securities and Exchange Commission) since 1934. Rule 301 specifies requirements including stress testing, security reviews, oversight procedures, disaster recovery plans, annual auditing and outages and changes reporting via periodically Form amendment. But regulations do not specify how of these responsibilities falls on cloud service providers and clients. The only way to reach Cloud by Regulator is to create a workaround and require broker-dealer to put specific provisions in their outsourcing agreement with the cloud service provider. So, instead of active cloud adoption by enterprise in 2012 (which will be mostly migration to private cloud) it will still be a year of early stage of cloud evaluation and new cloud business models. Enterprise and young cloud platforms have to go through a long learning curve before they start be effective for each other.

Cloud technologies are capable of processing billions of transactions and storing petabytes of data, making this environment very attractive for some industries where such capabilities are critical for business success. Energy and manufacturing are good examples and they will be actively utilizing cloud in 2012. For years energy utility companies were trying to build Smart Grid solutions containing hundreds of thousands of smart meters promising consumers to save on electrical bills. Overall they failed with this idea because of the high cost of installation, and the high cost and low scalability of the hosting infrastructure and device network. Combining new inexpensive wireless technologies like ZigBee with the advantages of cloud and emerging innovative technologies from companies like ThinkEco and Artemis Automation will enable energy management solutions that allow consumers to control energy consumption from mobile devices, conceivably lowering 15 percent reduction in energy costs. Giants like IBM and GE announced Smart Energy Cloud solutions for energy retailers and consumers. They support near real-time data gathering from millions of sensors, transfer it into the cloud databases and organize highly effective/scalable/elastic utility management systems supporting unbelievable scalability and two-way participation of consumers and providers.

In the UK, the Smart Meters Implementation Program will support up to 50 million of devices. Manufacturers will follow this trend because they have similar requirements. In 2011 we completed several projects for our customers where electronic devices were wirelessly connected to cloud and see growing demand in this area for 2012. In order to meet this demand, we keep actively developing our embedded practices together with cloud technologies.

Product companies with industry-specific solutions will start porting them to the cloud together with new Web interfaces. They develop Facebook-compatible applications connected through APIs, provide software components for SaaS platforms and applications registered on Salesforce App Exchange and Google Apps Marketplace. They will start to seriously consider social networking platforms as application platforms for their products and new marketing opportunities.

Lastly, 2012 will open up a new era for big data analytics for enterprises. Microsoft, IBM and Oracle rushed into this area and announced big data product releases. Oracle will release its Big Data Appliance Hadoop-based solution in January. Microsoft will release Hadoop-based SQL server in 2012 and it should have its beta Hadoop service on Azure by the end of 2011. So starting from 2012, Big Data and Big Data Analytics will be demystified and brought to the masses. It will change the way of making decisions. The financial industry will use it as an instrument for monitoring social media to predict customer buying behavior, incorporate analytics in trading decisions, detect complex patterns, and filter misinformation. Governments will use it to predict cyber-attacks and prevent crimes. There are wide range of use cases for real time big data analytics in healthcare, hospitality, telecommunications, and other industries. Organizations will suffer from a sharp shortage of specialists in this area. So, for those who tire of the cloud computing noise, big data analytics in the cloud promises to stimulate some interesting discussion.

About the Author

Oleg KomissarovOleg Komissarov is a veteran of the IT industry with more than 15 years of experience in custom software development and enterprise systems architecture. Oleg joined DataArt’s St. Petersburg office in 2006 as a senior software developer and advanced to a software architect in 2009. During that time he’s been responsible for enterprise solutions implementation for key financial clients in the United States and Europe. In 2010 he relocated to New York headquarters and was appointed Vice President of Enterprise Solutions.

Prior to DataArt, Oleg worked as a Senior Industrial Software Architect at a Magnitogorsk Iron & Steel Works (MMK:LI). He has MS in Electronic Engineering form Magnitogorsk State University, and in System Engineering from Yekaterinburg State University (Russia).

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!

Advancing Modular Supercomputing with DEEP and DEEP-ER Architectures

February 24, 2017

Knowing that the jump to exascale will require novel architectural approaches capable of delivering dramatic efficiency and performance gains, researchers around the world are hard at work on next-generation HPC systems. Read more…

By Sean Thielen

Weekly Twitter Roundup (Feb. 23, 2017)

February 23, 2017

Here at HPCwire, we aim to keep the HPC community apprised of the most relevant and interesting news items that get tweeted throughout the week. Read more…

By Thomas Ayres

HPE Server Shows Low Latency on STAC-N1 Test

February 22, 2017

The performance of trade and match servers can be a critical differentiator for financial trading houses. Read more…

By John Russell

HPC Financial Update (Feb. 2017)

February 22, 2017

In this recurring feature, we’ll provide you with financial highlights from companies in the HPC industry. Check back in regularly for an updated list with the most pertinent fiscal information. Read more…

By Thomas Ayres

HPE Extreme Performance Solutions

Manufacturers Reaping the Benefits of Remote Visualization

Today’s manufacturers are operating in an ever-changing atmosphere, and finding new ways to boost productivity has never been more vital.

This is why manufacturers are ramping up their investments in high performance computing (HPC), a trend which has helped give rise to the “connected factory” and Industrial Internet of Things (IIoT) concepts that are proliferating throughout the industry today. Read more…

Rethinking HPC Platforms for ‘Second Gen’ Applications

February 22, 2017

Just what constitutes HPC and how best to support it is a keen topic currently. 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 network training and now they are sharing their implementation with the larger deep learning community. Read more…

By Tiffany Trader

IDC: Will the Real Exascale Race Please Stand Up?

February 21, 2017

So the exascale race is on. And lots of organizations are in the pack. Government announcements from the US, China, India, Japan, and the EU indicate that they are working hard to make it happen – some sooner, some later. Read more…

By Bob Sorensen, IDC

ExxonMobil, NCSA, Cray Scale Reservoir Simulation to 700,000+ Processors

February 17, 2017

In a scaling breakthrough for oil and gas discovery, ExxonMobil geoscientists report they have harnessed the power of 717,000 processors – the equivalent of 22,000 32-processor computers – to run complex oil and gas reservoir simulation models. Read more…

By Doug Black

Advancing Modular Supercomputing with DEEP and DEEP-ER Architectures

February 24, 2017

Knowing that the jump to exascale will require novel architectural approaches capable of delivering dramatic efficiency and performance gains, researchers around the world are hard at work on next-generation HPC systems. Read more…

By Sean Thielen

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 network training and now they are sharing their implementation with the larger deep learning community. Read more…

By Tiffany Trader

IDC: Will the Real Exascale Race Please Stand Up?

February 21, 2017

So the exascale race is on. And lots of organizations are in the pack. Government announcements from the US, China, India, Japan, and the EU indicate that they are working hard to make it happen – some sooner, some later. Read more…

By Bob Sorensen, IDC

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 new board design for NVLink-equipped Pascal P100 GPUs that will create another entrant to the space currently occupied by Nvidia's DGX-1 system, IBM's "Minsky" platform and the Supermicro SuperServer (1028GQ-TXR). 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 will be Japan’s “fastest AI supercomputer,” Read more…

By Tiffany Trader

Drug Developers Use Google Cloud HPC in the Fight Against ALS

February 16, 2017

Within the haystack of a lethal disease such as ALS (amyotrophic lateral sclerosis / Lou Gehrig’s Disease) there exists, somewhere, the needle that will pierce this therapy-resistant affliction. Read more…

By Doug Black

Azure Edges AWS in Linpack Benchmark Study

February 15, 2017

The “when will clouds be ready for HPC” question has ebbed and flowed for years. Read more…

By John Russell

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 was pretty much the exclusive realm of the Cray-2 and IBM mainframe class products. That’s changing. We are now seeing an emergence of x86 class server products with exotic plumbing technology ranging from Direct-to-Chip to servers and storage completely immersed in a dielectric fluid. Read more…

By Steve Campbell

For IBM/OpenPOWER: Success in 2017 = (Volume) Sales

January 11, 2017

To a large degree IBM and the OpenPOWER Foundation have done what they said they would – assembling a substantial and growing ecosystem and bringing Power-based products to market, all in about three years. Read more…

By John Russell

US, China Vie for Supercomputing Supremacy

November 14, 2016

The 48th edition of the TOP500 list is fresh off the presses and while there is no new number one system, as previously teased by China, there are a number of notable entrants from the US and around the world and significant trends to report on. Read more…

By Tiffany Trader

Lighting up Aurora: Behind the Scenes at the Creation of the DOE’s Upcoming 200 Petaflops Supercomputer

December 1, 2016

In April 2015, U.S. Department of Energy Undersecretary Franklin Orr announced that Intel would be the prime contractor for Aurora: Read more…

By Jan Rowell

D-Wave SC16 Update: What’s Bo Ewald Saying These Days

November 18, 2016

Tucked in a back section of the SC16 exhibit hall, quantum computing pioneer D-Wave has been talking up its new 2000-qubit processor announced in September. Forget for a moment the criticism sometimes aimed at D-Wave. This small Canadian company has sold several machines including, for example, ones to Lockheed and NASA, and has worked with Google on mapping machine learning problems to quantum computing. In July Los Alamos National Laboratory took possession of a 1000-quibit D-Wave 2X system that LANL ordered a year ago around the time of SC15. Read more…

By John Russell

Enlisting Deep Learning in the War on Cancer

December 7, 2016

Sometime in Q2 2017 the first ‘results’ of the Joint Design of Advanced Computing Solutions for Cancer (JDACS4C) will become publicly available according to Rick Stevens. He leads one of three JDACS4C pilot projects pressing deep learning (DL) into service in the War on Cancer. Read more…

By John Russell

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 offerings such as Caffe, Theano, and Torch. Read more…

By John Russell

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 will be Japan’s “fastest AI supercomputer,” Read more…

By Tiffany Trader

HPC Startup Advances Auto-Parallelization’s Promise

January 23, 2017

The shift from single core to multicore hardware has made finding parallelism in codes more important than ever, but that hasn’t made the task of parallel programming any easier. Read more…

By Tiffany Trader

Leading Solution Providers

CPU Benchmarking: Haswell Versus POWER8

June 2, 2015

With OpenPOWER activity ramping up and IBM’s prominent role in the upcoming DOE machines Summit and Sierra, it’s a good time to look at how the IBM POWER CPU stacks up against the x86 Xeon Haswell CPU from Intel. Read more…

By Tiffany Trader

BioTeam’s Berman Charts 2017 HPC Trends in Life Sciences

January 4, 2017

Twenty years ago high performance computing was nearly absent from life sciences. Today it’s used throughout life sciences and biomedical research. Genomics and the data deluge from modern lab instruments are the main drivers, but so is the longer-term desire to perform predictive simulation in support of Precision Medicine (PM). There’s even a specialized life sciences supercomputer, ‘Anton’ from D.E. Shaw Research, and the Pittsburgh Supercomputing Center is standing up its second Anton 2 and actively soliciting project proposals. There’s a lot going on. Read more…

By John Russell

Nvidia Sees Bright Future for AI Supercomputing

November 23, 2016

Graphics chipmaker Nvidia made a strong showing at SC16 in Salt Lake City last week. Read more…

By Tiffany Trader

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 new board design for NVLink-equipped Pascal P100 GPUs that will create another entrant to the space currently occupied by Nvidia's DGX-1 system, IBM's "Minsky" platform and the Supermicro SuperServer (1028GQ-TXR). Read more…

By Tiffany Trader

IDG to Be Bought by Chinese Investors; IDC to Spin Out HPC Group

January 19, 2017

US-based publishing and investment firm International Data Group, Inc. (IDG) will be acquired by a pair of Chinese investors, China Oceanwide Holdings Group Co., Ltd. Read more…

By Tiffany Trader

Dell Knights Landing Machine Sets New STAC Records

November 2, 2016

The Securities Technology Analysis Center, commonly known as STAC, has released a new report characterizing the performance of the Knight Landing-based Dell PowerEdge C6320p server on the STAC-A2 benchmarking suite, widely used by the financial services industry to test and evaluate computing platforms. The Dell machine has set new records for both the baseline Greeks benchmark and the large Greeks benchmark. 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 was pretty much the exclusive realm of the Cray-2 and IBM mainframe class products. That’s changing. We are now seeing an emergence of x86 class server products with exotic plumbing technology ranging from Direct-to-Chip to servers and storage completely immersed in a dielectric fluid. Read more…

By Steve Campbell

What Knights Landing Is Not

June 18, 2016

As we get ready to launch the newest member of the Intel Xeon Phi family, code named Knights Landing, it is natural that there be some questions and potentially some confusion. Read more…

By James Reinders, Intel

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