Shutdown Signals Serious Hit for SGI

By Nicole Hemsoth

October 11, 2013

It’s hard to ignore the news filtering in around the effects of the government shutdown, especially for many of our readers who work at some of the top U.S. research institutions and national labs.

But the effects are definitely being felt beyond academia as the vendors who supply those labs and organizations with HPC gear are now facing significant delays, if not outright cancellations of previously ordered high tech goods and services.

As the shutdown drags on, there are a few canaries in the coalmine when it comes to HPC, especially in government and research circles.

This evening SGI reported their preliminary financial results for the first quarter, which ended at the close of September and offered an outlook for the fiscal year ending 2014. That outlook is grim because, as SGI made perfectly clear to investors during a call, there is “current uncertainty related to the timing of various IT projects funded by the U.S. government.” Further, they note that a great deal of the shortfall is centered around “the freezing of funds for a federal project and to delayed acceptance of a non-federal project.” In other words, at least two very, very important projects have gone downhill—if not had their wheels removed entirely.

While SGI does a certain amount of its business in enterprise environments, their real bread and butter is driven by the HPC (and related) space. They have taken several steps in the last year to firm up their position around being a provider of high-end systems and related services for large-scale environments that cater to the big data demands of big enterprise—but frequently to their several government and research customers. For instance, at the beginning of the month, SGI acquired FileTek to bolster their ability to cater to the data-intensive computing set outside of the HPC niche alone, but even in the best of business situations, a shutdown like this would have required a far more stable plan—but that puts them in the same boat as everyone else, of course.

The company’s overall revenue as it relates to high performance computing and the range of services around it (this includes their “big data” as well as services and storage business) is expected to round out at around $134 million—or a total of 91% of their annual revenue. While different analysts will push out different perspectives on this, it’s safe to offer the anecdotal guideline that a large amount of what we in the “traditional” HPC community call HPC is very tied to academia, government and research.

And for SGI, here’s the real clincher:

Core revenue related primarily to High-Performance Computing (HPC), Big Data, Storage, and services is expected to be approximately $134 million, representing 91% of total revenue for the quarter. This reflects sequential growth of 6% over the prior quarter core revenue of $126 million. Consistent with the company’s strategic withdrawal from commodity server markets, legacy cloud revenue for the fiscal first quarter is expected to decline to approximately $14 million, which compares with $45 million in the prior quarter.

As Jorge Titinger, president and CEO of SGI noted, “with the Federal government shutdown, it is virtually impossible to transact business with most of our Federal customers at this time, which adds significant risk to our near-term revenue outlook and impairs our visibility as to the timing of the expected restart of Federal projects.”

For the fiscal year ending June 27, 2014, the company currently expects that the government shutdown and possible spillover effects could result in a reduction in revenue for the year of approximately 10% versus its prior revenue expectations of approximately $760 million, with most of this impact occurring in the fiscal first half ending Dec. 27, 2013.

Is this the beginning of a wave of such reports? How’s the temperature where you are?

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!

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

Weekly Twitter Roundup (Jan. 19, 2017)

January 19, 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

France’s CEA and Japan’s RIKEN to Partner on ARM and Exascale

January 19, 2017

France’s CEA and Japan’s RIKEN institute announced a multi-faceted five-year collaboration to advance HPC generally and prepare for exascale computing. Among the particulars are efforts to: build out the ARM ecosystem; work on code development and code sharing on the existing and future platforms; share expertise in specific application areas (material and seismic sciences for example); improve techniques for using numerical simulation with big data; and expand HPC workforce training. It seems to be a very full agenda. Read more…

By Nishi Katsuya and John Russell

ARM Waving: Attention, Deployments, and Development

January 18, 2017

It’s been a heady two weeks for the ARM HPC advocacy camp. At this week’s Mont-Blanc Project meeting held at the Barcelona Supercomputer Center, Cray announced plans to build an ARM-based supercomputer in the U.K. while Mont-Blanc selected Cavium’s ThunderX2 ARM chip for its third phase of development. Last week, France’s CEA and Japan’s Riken announced a deep collaboration aimed largely at fostering the ARM ecosystem. This activity follows a busy 2016 when SoftBank acquired ARM, OpenHPC announced ARM support, ARM released its SVE spec, Fujistu chose ARM for the post K machine, and ARM acquired HPC tool provider Allinea in December. Read more…

By John Russell

HPE Extreme Performance Solutions

Remote Visualization: An Integral Technology for Upstream Oil & Gas

As the exploration and production (E&P) of natural resources evolves into an even more complex and vital task, visualization technology has become integral for the upstream oil and gas industry. Read more…

Women Coders from Russia, Italy, and Poland Top Study

January 17, 2017

According to a study posted on HackerRank today the best women coders as judged by performance on HackerRank challenges come from Russia, Italy, and Poland. Read more…

By John Russell

Spurred by Global Ambitions, Inspur in Joint HPC Deal with DDN

January 17, 2017

Inspur, the fast-growth cloud computing and server vendor from China that has several systems on the current Top500 list, and DDN, a leader in high-end storage, have announced a joint sales and marketing agreement to produce solutions based on DDN storage platforms integrated with servers, networking, software and services from Inspur. Read more…

By Doug Black

Weekly Twitter Roundup (Jan. 12, 2017)

January 12, 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

NSF Seeks Input on Cyberinfrastructure Advances Needed

January 12, 2017

In cased you missed it, the National Science Foundation posted a “Dear Colleague Letter” (DCL) late last week seeking input on needs for the next generation of cyberinfrastructure to support science and engineering. Read more…

By John Russell

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

France’s CEA and Japan’s RIKEN to Partner on ARM and Exascale

January 19, 2017

France’s CEA and Japan’s RIKEN institute announced a multi-faceted five-year collaboration to advance HPC generally and prepare for exascale computing. Among the particulars are efforts to: build out the ARM ecosystem; work on code development and code sharing on the existing and future platforms; share expertise in specific application areas (material and seismic sciences for example); improve techniques for using numerical simulation with big data; and expand HPC workforce training. It seems to be a very full agenda. Read more…

By Nishi Katsuya and John Russell

ARM Waving: Attention, Deployments, and Development

January 18, 2017

It’s been a heady two weeks for the ARM HPC advocacy camp. At this week’s Mont-Blanc Project meeting held at the Barcelona Supercomputer Center, Cray announced plans to build an ARM-based supercomputer in the U.K. while Mont-Blanc selected Cavium’s ThunderX2 ARM chip for its third phase of development. Last week, France’s CEA and Japan’s Riken announced a deep collaboration aimed largely at fostering the ARM ecosystem. This activity follows a busy 2016 when SoftBank acquired ARM, OpenHPC announced ARM support, ARM released its SVE spec, Fujistu chose ARM for the post K machine, and ARM acquired HPC tool provider Allinea in December. Read more…

By John Russell

Spurred by Global Ambitions, Inspur in Joint HPC Deal with DDN

January 17, 2017

Inspur, the fast-growth cloud computing and server vendor from China that has several systems on the current Top500 list, and DDN, a leader in high-end storage, have announced a joint sales and marketing agreement to produce solutions based on DDN storage platforms integrated with servers, networking, software and services from Inspur. Read more…

By Doug Black

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

UberCloud Cites Progress in HPC Cloud Computing

January 10, 2017

200 HPC cloud experiments, 80 case studies, and a ton of hands-on experience gained, that’s the harvest of four years of UberCloud HPC Experiments. Read more…

By Wolfgang Gentzsch and Burak Yenier

A Conversation with Women in HPC Director Toni Collis

January 6, 2017

In this SC16 video interview, HPCwire Managing Editor Tiffany Trader sits down with Toni Collis, the director and founder of the Women in HPC (WHPC) network, to discuss the strides made since the organization’s debut in 2014. 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

AWS Beats Azure to K80 General Availability

September 30, 2016

Amazon Web Services has seeded its cloud with Nvidia Tesla K80 GPUs to meet the growing demand for accelerated computing across an increasingly-diverse range of workloads. The P2 instance family is a welcome addition for compute- and data-focused users who were growing frustrated with the performance limitations of Amazon's G2 instances, which are backed by three-year-old Nvidia GRID K520 graphics cards. Read more…

By Tiffany Trader

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

Vectors: How the Old Became New Again in Supercomputing

September 26, 2016

Vector instructions, once a powerful performance innovation of supercomputing in the 1970s and 1980s became an obsolete technology in the 1990s. But like the mythical phoenix bird, vector instructions have arisen from the ashes. Here is the history of a technology that went from new to old then back to new. Read more…

By Lynd Stringer

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

Container App ‘Singularity’ Eases Scientific Computing

October 20, 2016

HPC container platform Singularity is just six months out from its 1.0 release but already is making inroads across the HPC research landscape. It's in use at Lawrence Berkeley National Laboratory (LBNL), where Singularity founder Gregory Kurtzer has worked in the High Performance Computing Services (HPCS) group for 16 years. Read more…

By Tiffany Trader

Dell EMC Engineers Strategy to Democratize HPC

September 29, 2016

The freshly minted Dell EMC division of Dell Technologies is on a mission to take HPC mainstream with a strategy that hinges on engineered solutions, beginning with a focus on three industry verticals: manufacturing, research and life sciences. "Unlike traditional HPC where everybody bought parts, assembled parts and ran the workloads and did iterative engineering, we want folks to focus on time to innovation and let us worry about the infrastructure," said Jim Ganthier, senior vice president, validated solutions organization at Dell EMC Converged Platforms Solution Division. 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

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

Leading Solution Providers

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

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

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

Beyond von Neumann, Neuromorphic Computing Steadily Advances

March 21, 2016

Neuromorphic computing – brain inspired computing – has long been a tantalizing goal. The human brain does with around 20 watts what supercomputers do with megawatts. And power consumption isn’t the only difference. Fundamentally, brains ‘think differently’ than the von Neumann architecture-based computers. While neuromorphic computing progress has been intriguing, it has still not proven very practical. Read more…

By John Russell

The Exascale Computing Project Awards $39.8M to 22 Projects

September 7, 2016

The Department of Energy’s Exascale Computing Project (ECP) hit an important milestone today with the announcement of its first round of funding, moving the nation closer to its goal of reaching capable exascale computing by 2023. 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

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

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