IDC: AI, HPDA Driving HPC into High Growth Markets

By Doug Black

November 16, 2016

The rapid growth in technology that can be trained, that infers, that continually learns from information contained in enormous data sets, all the while generating strong ROI on strategic initiatives, dominated ICD’s annual HPC market report presented yesterday at SC16 in Salt Lake City.

“High performance data analytics (HPDA) is where Big Data and HPC come together,” said Earl Joseph, IDC program vice president, high-performance computing, “and we’re seeing some tremendous growth in this area. Big Data is having major impact on HPC and we expect it to be one of the fundamental growth drivers.”

IDC's Earl Joseph
IDC’s Earl Joseph

Overall HPC purchases in 2015 totaled $11.4B, IDC reported, for a growth rate of more than 10 percent, with storage the fastest growing segment. Cyclically “bumpy” supercomputer sales declined as purchases of top 10 systems slowed for the third straight year, but IDC noted “the profusion of Exascale announcements is generating a lot of buzz,” and Joseph said supercomputer sales are expected to experience a significant uptick in 2017.

Meanwhile the overall HPC server market (ranging from supercomputers to workgroup systems) totaled $5.2 billion for the first half of the year with 2016 “looking good,” Joseph said, projected at 6 to 7 percent growth.

IDC expects the HPC server market to continue to average annual 6 percent growth through 2020.

Some of the most impressive findings released by IDC were updates to its HPC ROI study, developed as part of a DOE grant and based on data from 673 HPC installations in 14 countries across government, academic and industry. On average, according to IDC, every dollar invested in HPC generated $551 in revenues and $52 in profits or cost savings.

“These are tremendous returns compared to normal venture capitalists and everyone else,” Joseph said, “and a big part of this is because HPC is often applied to very successful and big projects and programs.”

IDC also measured HPC-related job creation, finding that the overall average HPC investment cost per job created was $270K.

idc-sc16-server-vendorsAs for vendor competition, IDC reported that during the first half of 2016 HPE had nearly twice the HPC server revenues, $1.9B, of its closest rival, Dell, at $954 million. In the supercomputer segment, HPE had revenues of $446 million to Dell’s $224 million.

“HPE clearly has become the market leader when IBM sold of its x86 assets to Lenovo,” said Joseph. “But going forward with the acquisition of SGI, it really puts them in a different position from the other vendors. We’re also seeing Dell having significant growth right now, and with the combination with EMC we expect to see Dell’s growth move up quite a bit.”

It’s the ongoing confluence of big data with HPC that is a primary driver of HPC adoption in new and expanding markets, Joseph said.

Identifying the major sectors within the HPDA category has been an ongoing exercise. Currently, IDC singles out four HPDA segments:

  • Security, fraud and anomaly detection. This centers around identifying potentially harmful patterns and causes using graph analysis, semantic analysis or other high performance analytics techniques. The patterns may point to fraud or to cyber security crime or insider threats, significant errors, or other anomalies.
  • This is the use of HPDA to promote products or services, typically using complex algorithms to discern potential customers’ demographics, buying preferences and habits.
  • Business intelligence. This workload segment uses HPDA to identify opportunities to advance the market position and competitiveness of businesses, by better understanding themselves, their competitors, and the evolving dynamics of the markets they participate in.
  • Other commercial HPDA. This includes all other commercial HPDA, such as high-potential workload to manage large IT infrastructures, ranging from on premise data centers to public clouds and Internet-of-Things (IoT) infrastructures.

Joseph noted that the next new HPDA segment will be precision medicine, in which a patient’s individual genome, history and symptomology are stored in a database and compared with millions of archived patient records for relevant outcomes.

“We expect HPDA, machine learning and AI to really have some substantial growth in the market,” Joseph said. “We’re talking to so many clients about how to use HPC in these new unique ways. And the market factor that’s amazing to me is that the financial returns are just staggering. It’s a place where people aren’t as concerned with how cheap the system is, how cheap the software is, it’s much more about solving a strategic problem that’s going to generate a lot of revenue.”

Steve Conway, IDC research vice president, high performance computing, said he and his colleagues look closely at “what triggers people to add HPC into their enterprise IT data centers. And it’s the fact of complexity and time criticality that make that happen.”

idc-hpda-workloads

IDC projects HPDA server market growth through 2020 of 26 percent CAGR in new commercial analytics segments, compared with 17 percent CAGR for traditional HPC server segments. The overall HPDA market will grow robustly to $3.9B by 2018, with the strongest growth is taking place in industry, where it is “taking off like a rocket,” said Conway. As of 2015, IDC reported, more than 33 percent of workloads in commercial settings over the next six to 18 months will be devoted to HPDA; whereas in government and academia HPDA workloads are expected to be 20 and 16 percent, respectively.

idc-2015-20-hpc-server-growth

Bob Sorensen, IDC research vice president, HPC group, said the “HPC universe is expanding in ways that are not directly observed…because we haven’t quite decided what the definition of HPC should be.”

He identified work being done with new hardware and software for deep learning. “From the training phase, the computationally intensive part where you go and train a deep neural network to understand a tough problem – exaflops regression kind of training,” involving GPUs, (Xeon) Phis and FPGAs.

He also cited “tactical HPC for inference,” the use of a subset of a system that was trained on a larger HPC system. “It could be questions as trivial as your smart phone being able to understand your voice or as relatively computationally complex” as a self-driving car.”

“There are companies out there adopting business intelligence, who are being forced into HPC simply because their data sets are growing,” Sorensen said. “They don’t have the luxury of saying ‘Wow, we’ve got all this additional data, let’s just ignore it because we don’t have the computational capability to handle it.’ The growth in the data that’s available to these companies is forcing them into the HPC world, whether they like it or not.”

He said the next major development in deep learning is what Sorensen called “on the job training” – an application becoming smarter as it carries out its tasks. “You have a car that’s driving down a street and comes across a problem it hasn’t seen before. And if it reacts badly or properly, that information is then communicated to the entire community of cars that are using that same inference engine. It’s a merging of training and inference.”

At the breakfast, IDC also announced the 10th round of recipients of the HPC Innovation Excellence Award. This year’s winners are:

Robert Wilhelmson and Leigh Orf, University of Wisconsin at Madison: “Unlocking the Mysteries of the Most Violent Tornadoes.” The researched studied devastating, long-lived tornadoes, which are rare but the death and destruction they cause is significant. This computational project reviewed nearly four years of the researchers’ HPC-based work with a strong focus on recent supercell thunderstorm simulations. Wilhelmson and Orf an overview of the challenges that were overcome in order to simulate and visualize tornadoes, embedded within their parent thunderstorms, at ultra-high spatial and temporal resolution.

David Ceperley, University of Illinois: “Hydrogen under Extreme Conditions.” Hydrogen accounts for much of the visible mass in the universe and hydrogen and helium are important for understanding large planets. However, experiments under the relevant conditions are challenging. Dr. Ceperley developed new Quantum Monte Carlo simulation methods to treat such systems and has been using them to study molecular dissociation in liquid hydrogen. After validation, the method can be used with more confidence in modeling the wide variety of observed astrophysical objects composed largely of hydrogen and helium under extreme conditions.

Gerrit Botha, University of Cape Town: “Custom Genotyping Chip for African Populations.” This computational project aims to produce genomic variant calls for the design of a cost-effective genotyping chip that will capture the genetic diversity in populations of African origin, including African-Americans. This ongoing work will enable the identification of genetic variation specific to African populations to improve understanding of the links between genotype and disease and extend personalized medicine to these underserved populations.

Ruby Mendenhall et al., University of Illinois: “Rescuing Lost History: Using Big Data to Recover Black Women’s Lived Experiences.” Documents recording the lives of black women are often historically obscure, hidden away in vast library collections and unintentionally misleadingly titled or cataloged. Dr. Mendenhall is leading a collaboration of social scientists, humanities scholars and digital researchers using HPC to find and understand the historical experiences of black women by searching two massive databases of written works from the 18th through 20th centuries.

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!

ORNL Helps Identify Challenges of Extremely Heterogeneous Architectures

March 21, 2019

Exponential growth in classical computing over the last two decades has produced hardware and software that support lightning-fast processing speeds, but advancements are topping out as computing architectures reach thei Read more…

By Laurie Varma

Interview with 2019 Person to Watch Jim Keller

March 21, 2019

On the heels of Intel's reaffirmation that it will deliver the first U.S. exascale computer in 2021, which will feature the company's new Intel Xe architecture, we bring you our interview with our 2019 Person to Watch Jim Keller, head of the Silicon Engineering Group at Intel. Read more…

By HPCwire Editorial Team

What’s New in HPC Research: TensorFlow, Buddy Compression, Intel Optane & More

March 20, 2019

In this bimonthly feature, HPCwire highlights newly published research in the high-performance computing community and related domains. From parallel programming to exascale to quantum computing, the details are here. Read more…

By Oliver Peckham

HPE Extreme Performance Solutions

HPE and Intel® Omni-Path Architecture: How to Power a Cloud

Learn how HPE and Intel® Omni-Path Architecture provide critical infrastructure for leading Nordic HPC provider’s HPCFLOW cloud service.

powercloud_blog.jpgFor decades, HPE has been at the forefront of high-performance computing, and we’ve powered some of the fastest and most robust supercomputers in the world. Read more…

IBM Accelerated Insights

Insurance: Where’s the Risk?

Insurers are facing extreme competitive challenges in their core businesses. Property and Casualty (P&C) and Life and Health (L&H) firms alike are highly impacted by the ongoing globalization, increasing regulation, and digital transformation of their client bases. Read more…

At GTC: Nvidia Expands Scope of Its AI and Datacenter Ecosystem

March 19, 2019

In the high-stakes race to provide the AI life-cycle solution of choice, three of the biggest horses in the field are IBM, Intel and Nvidia. While the latter is only a fraction of the size of its two bigger rivals, and has been in business for only a fraction of the time, Nvidia continues to impress with an expanding array of new GPU-based hardware, software, robotics, partnerships and... Read more…

By Doug Black

At GTC: Nvidia Expands Scope of Its AI and Datacenter Ecosystem

March 19, 2019

In the high-stakes race to provide the AI life-cycle solution of choice, three of the biggest horses in the field are IBM, Intel and Nvidia. While the latter is only a fraction of the size of its two bigger rivals, and has been in business for only a fraction of the time, Nvidia continues to impress with an expanding array of new GPU-based hardware, software, robotics, partnerships and... Read more…

By Doug Black

Nvidia Debuts Clara AI Toolkit with Pre-Trained Models for Radiology Use

March 19, 2019

AI’s push into healthcare got a boost yesterday with Nvidia’s release of the Clara Deploy AI toolkit which includes 13 pre-trained models for use in radiolo Read more…

By John Russell

It’s Official: Aurora on Track to Be First US Exascale Computer in 2021

March 18, 2019

The U.S. Department of Energy along with Intel and Cray confirmed today that an Intel/Cray supercomputer, "Aurora," capable of sustained performance of one exaf Read more…

By Tiffany Trader

Why Nvidia Bought Mellanox: ‘Future Datacenters Will Be…Like High Performance Computers’

March 14, 2019

“Future datacenters of all kinds will be built like high performance computers,” said Nvidia CEO Jensen Huang during a phone briefing on Monday after Nvidia revealed scooping up the high performance networking company Mellanox for $6.9 billion. Read more…

By Tiffany Trader

Oil and Gas Supercloud Clears Out Remaining Knights Landing Inventory: All 38,000 Wafers

March 13, 2019

The McCloud HPC service being built by Australia’s DownUnder GeoSolutions (DUG) outside Houston is set to become the largest oil and gas cloud in the world th Read more…

By Tiffany Trader

Quick Take: Trump’s 2020 Budget Spares DoE-funded HPC but Slams NSF and NIH

March 12, 2019

U.S. President Donald Trump’s 2020 budget request, released yesterday, proposes deep cuts in many science programs but seems to spare HPC funding by the Depar Read more…

By John Russell

Nvidia Wins Mellanox Stakes for $6.9 Billion

March 11, 2019

The long-rumored acquisition of Mellanox came to fruition this morning with GPU chipmaker Nvidia’s announcement that it has purchased the high-performance net Read more…

By Doug Black

Optalysys Rolls Commercial Optical Processor

March 7, 2019

Optalysys, Ltd., a U.K. company seeking to advance it optical co-processor technology, moved a step closer this week with the unveiling of what it claims is th Read more…

By George Leopold

Quantum Computing Will Never Work

November 27, 2018

Amid the gush of money and enthusiastic predictions being thrown at quantum computing comes a proposed cold shower in the form of an essay by physicist Mikhail Read more…

By John Russell

The Case Against ‘The Case Against Quantum Computing’

January 9, 2019

It’s not easy to be a physicist. Richard Feynman (basically the Jimi Hendrix of physicists) once said: “The first principle is that you must not fool yourse Read more…

By Ben Criger

ClusterVision in Bankruptcy, Fate Uncertain

February 13, 2019

ClusterVision, European HPC specialists that have built and installed over 20 Top500-ranked systems in their nearly 17-year history, appear to be in the midst o Read more…

By Tiffany Trader

Intel Reportedly in $6B Bid for Mellanox

January 30, 2019

The latest rumors and reports around an acquisition of Mellanox focus on Intel, which has reportedly offered a $6 billion bid for the high performance interconn Read more…

By Doug Black

Why Nvidia Bought Mellanox: ‘Future Datacenters Will Be…Like High Performance Computers’

March 14, 2019

“Future datacenters of all kinds will be built like high performance computers,” said Nvidia CEO Jensen Huang during a phone briefing on Monday after Nvidia revealed scooping up the high performance networking company Mellanox for $6.9 billion. Read more…

By Tiffany Trader

Looking for Light Reading? NSF-backed ‘Comic Books’ Tackle Quantum Computing

January 28, 2019

Still baffled by quantum computing? How about turning to comic books (graphic novels for the well-read among you) for some clarity and a little humor on QC. The Read more…

By John Russell

Contract Signed for New Finnish Supercomputer

December 13, 2018

After the official contract signing yesterday, configuration details were made public for the new BullSequana system that the Finnish IT Center for Science (CSC Read more…

By Tiffany Trader

Deep500: ETH Researchers Introduce New Deep Learning Benchmark for HPC

February 5, 2019

ETH researchers have developed a new deep learning benchmarking environment – Deep500 – they say is “the first distributed and reproducible benchmarking s Read more…

By John Russell

Leading Solution Providers

SC 18 Virtual Booth Video Tour

Advania @ SC18 AMD @ SC18
ASRock Rack @ SC18
DDN Storage @ SC18
HPE @ SC18
IBM @ SC18
Lenovo @ SC18 Mellanox Technologies @ SC18
NVIDIA @ SC18
One Stop Systems @ SC18
Oracle @ SC18 Panasas @ SC18
Supermicro @ SC18 SUSE @ SC18 TYAN @ SC18
Verne Global @ SC18

IBM Quantum Update: Q System One Launch, New Collaborators, and QC Center Plans

January 10, 2019

IBM made three significant quantum computing announcements at CES this week. One was introduction of IBM Q System One; it’s really the integration of IBM’s Read more…

By John Russell

IBM Bets $2B Seeking 1000X AI Hardware Performance Boost

February 7, 2019

For now, AI systems are mostly machine learning-based and “narrow” – powerful as they are by today's standards, they're limited to performing a few, narro Read more…

By Doug Black

The Deep500 – Researchers Tackle an HPC Benchmark for Deep Learning

January 7, 2019

How do you know if an HPC system, particularly a larger-scale system, is well-suited for deep learning workloads? Today, that’s not an easy question to answer Read more…

By John Russell

HPC Reflections and (Mostly Hopeful) Predictions

December 19, 2018

So much ‘spaghetti’ gets tossed on walls by the technology community (vendors and researchers) to see what sticks that it is often difficult to peer through Read more…

By John Russell

Arm Unveils Neoverse N1 Platform with up to 128-Cores

February 20, 2019

Following on its Neoverse roadmap announcement last October, Arm today revealed its next-gen Neoverse microarchitecture with compute and throughput-optimized si Read more…

By Tiffany Trader

It’s Official: Aurora on Track to Be First US Exascale Computer in 2021

March 18, 2019

The U.S. Department of Energy along with Intel and Cray confirmed today that an Intel/Cray supercomputer, "Aurora," capable of sustained performance of one exaf Read more…

By Tiffany Trader

Move Over Lustre & Spectrum Scale – Here Comes BeeGFS?

November 26, 2018

Is BeeGFS – the parallel file system with European roots – on a path to compete with Lustre and Spectrum Scale worldwide in HPC environments? Frank Herold Read more…

By John Russell

France to Deploy AI-Focused Supercomputer: Jean Zay

January 22, 2019

HPE announced today that it won the contract to build a supercomputer that will drive France’s AI and HPC efforts. The computer will be part of GENCI, the Fre Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This