Penguin Computing in $85 Million Acquisition Deal

By Doug Black

June 12, 2018

If another indication were needed of the explosive growth in cloud services, AI-based workloads and Linux in the enterprise – along with their attractiveness to investors – it’s the acquisition of fast-growth Penguin Computing, announced today by Smart Global Holdings for $85 million.

Penguin, the 20-year-old advanced scale hardware solutions provider, develops open, Linux-based cloud and HPC solutions ranging from Linux servers and workstation to integrated HPC cluster and cluster management software. Increasingly enterprise- and AI-focused, the company said today that between 30 and 40 percent of its business is AI-related. Overall, Penguin claims an installed base of more than 18,000 systems in 40+ countries at customer sites that include NASA, AOL, Caterpillar, Lockheed Martin, Boeing, Life Technologies and the U.S. Navy. In the HPC world, Penguin three years ago won a $39 million contract for a nearly 10-petaflops (aggregate) deployment with the U.S. Department of Energy’s National Nuclear Security Administration.

Penguin’s OCP-based Tundra ES platform supports Intel, AMD, ARM and Nvidia processor technology

Penguin is known for its versatile product set that includes on-premises hardware as well as public and private cloud solutions, such as Penguin-on-Demand, a high-performance, bare-metal computing environment in the cloud. The company also offers a managed service, available through its professional services arm, an on-premises system managed by customers, an on-premises system managed by Penguin or systems colocated in Penguin’s datacenter.

Penguin has been a hot-growth company of late, reporting Q1 2018 profits of $10.3 million on net sales of $48.5 million, compared $5.8 million in profits on $26.9 million in revenue for the same period the previous year. Overall, the company reported FY’17 sales of $166.5 million and profits of $30.4 million.

Penguin will continue as a stand-alone operation and will be the first part of the holding company’s new business unit, SMART Specialty Compute & Storage Solutions, which “will benefit from shared infrastructure and the ability to leverage the products and capabilities of Smart’s Specialty Memory business unit into the emerging AI and ML markets.”

“We are pleased to be embarking on the first acquisition of our strategy to broaden the reach and capabilities of SMART into new technologies, markets and channels that leverage our proven platform of integrating and growing businesses,” said Ajay Shah, Chairman and CEO of SMART Global Holdings. “Penguin brings an outstanding customer base, solid products and strong supplier relationships to SMART in the specialty compute, storage and networking markets.”

“We are looking forward to becoming a part of the SMART family of global companies and will continue to deliver Penguin branded high quality, cost effective, purpose-built servers, storage and networking solutions for our customers,” said Tom Coull, CEO of Penguin. “With this new platform, Penguin will have substantially improved access to capital to drive additional investment in, and further development and growth of our product and services offerings. Based on all of the benefits that we anticipate from this transaction, we expect that our customers and suppliers will be supportive of the transaction.”

Smart’s acquisition of Penguin for up to $85 million includes up to $25 million of performance-based payments made if agreed-upon targets are achieved. Headquartered in the Cayman Islands and founded 30 years ago, the SMART family of companies specializes in memory, storage and hybrid solutions for the electronics industry with standard and custom products.

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!

How the United States Invests in Supercomputing

November 14, 2018

The CORAL supercomputers Summit and Sierra are now the world's fastest computers and are already contributing to science with early applications. Ahead of SC18, Maciej Chojnowski with ICM at the University of Warsaw discussed the details of the CORAL project with Dr. Dimitri Kusnezov from the U.S. Department of Energy. Read more…

By Maciej Chojnowski

At SC18: Humanitarianism Amid Boom Times for HPC

November 14, 2018

At SC18 in Dallas, the feeling on the ground is one of forward-looking buoyancy. Like boom times that cycle through the Texas oil fields, the HPC industry is enjoying a prosperity seen only every few decades, one driven Read more…

By Doug Black

Nvidia’s Jensen Huang Delivers Vision for the New HPC

November 14, 2018

For nearly two hours on Monday at SC18, Jensen Huang, CEO of Nvidia, presented his expansive view of the future of HPC (and computing in general) as only he can do. Animated. Backstopped by a stream of data charts, produ Read more…

By John Russell

HPE Extreme Performance Solutions

AI Can Be Scary. But Choosing the Wrong Partners Can Be Mortifying!

As you continue to dive deeper into AI, you will discover it is more than just deep learning. AI is an extremely complex set of machine learning, deep learning, reinforcement, and analytics algorithms with varying compute, storage, memory, and communications needs. Read more…

IBM Accelerated Insights

From Deep Blue to Summit – 30 Years of Supercomputing Innovation

This week, in honor of the 30th anniversary of the SC conference, we are highlighting some of the most significant IBM contributions to supercomputing over the past 30 years. Read more…

New Panasas High Performance Storage Straddles Commercial-Traditional HPC

November 13, 2018

High performance storage vendor Panasas has launched a new version of its ActiveStor product line this morning featuring what the company said is the industry’s first plug-and-play, portable parallel file system that delivers up to 75 Gb/s per rack on industry standard hardware combined with “enterprise-grade reliability and manageability.” Read more…

By Doug Black

How the United States Invests in Supercomputing

November 14, 2018

The CORAL supercomputers Summit and Sierra are now the world's fastest computers and are already contributing to science with early applications. Ahead of SC18, Maciej Chojnowski with ICM at the University of Warsaw discussed the details of the CORAL project with Dr. Dimitri Kusnezov from the U.S. Department of Energy. Read more…

By Maciej Chojnowski

At SC18: Humanitarianism Amid Boom Times for HPC

November 14, 2018

At SC18 in Dallas, the feeling on the ground is one of forward-looking buoyancy. Like boom times that cycle through the Texas oil fields, the HPC industry is en Read more…

By Doug Black

Nvidia’s Jensen Huang Delivers Vision for the New HPC

November 14, 2018

For nearly two hours on Monday at SC18, Jensen Huang, CEO of Nvidia, presented his expansive view of the future of HPC (and computing in general) as only he can Read more…

By John Russell

New Panasas High Performance Storage Straddles Commercial-Traditional HPC

November 13, 2018

High performance storage vendor Panasas has launched a new version of its ActiveStor product line this morning featuring what the company said is the industry’s first plug-and-play, portable parallel file system that delivers up to 75 Gb/s per rack on industry standard hardware combined with “enterprise-grade reliability and manageability.” Read more…

By Doug Black

SC18 Student Cluster Competition – Revealing the Field

November 13, 2018

It’s November again and we’re almost ready for the kick-off of one of the greatest computer sports events in the world – the SC Student Cluster Competitio Read more…

By Dan Olds

US Leads Supercomputing with #1, #2 Systems & Petascale Arm

November 12, 2018

The 31st Supercomputing Conference (SC) - commemorating 30 years since the first Supercomputing in 1988 - kicked off in Dallas yesterday, taking over the Kay Ba Read more…

By Tiffany Trader

OpenACC Talks Up Summit and Community Momentum at SC18

November 12, 2018

OpenACC – the directives-based parallel programing model for optimizing applications on heterogeneous architectures – is showcasing user traction and HPC im Read more…

By John Russell

How ASCI Revolutionized the World of High-Performance Computing and Advanced Modeling and Simulation

November 9, 2018

The 1993 Supercomputing Conference was held in Portland, Oregon. That conference and it’s show floor provided a good snapshot of the uncertainty that U.S. supercomputing was facing in the early 1990s. Many of the companies exhibiting that year would soon be gone, either bankrupt or acquired by somebody else. Read more…

By Alex R. Larzelere

Cray Unveils Shasta, Lands NERSC-9 Contract

October 30, 2018

Cray revealed today the details of its next-gen supercomputing architecture, Shasta, selected to be the next flagship system at NERSC. We've known of the code-name "Shasta" since the Argonne slice of the CORAL project was announced in 2015 and although the details of that plan have changed considerably, Cray didn't slow down its timeline for Shasta. Read more…

By Tiffany Trader

TACC Wins Next NSF-funded Major Supercomputer

July 30, 2018

The Texas Advanced Computing Center (TACC) has won the next NSF-funded big supercomputer beating out rivals including the National Center for Supercomputing Ap Read more…

By John Russell

IBM at Hot Chips: What’s Next for Power

August 23, 2018

With processor, memory and networking technologies all racing to fill in for an ailing Moore’s law, the era of the heterogeneous datacenter is well underway, Read more…

By Tiffany Trader

Requiem for a Phi: Knights Landing Discontinued

July 25, 2018

On Monday, Intel made public its end of life strategy for the Knights Landing "KNL" Phi product set. The announcement makes official what has already been wide Read more…

By Tiffany Trader

House Passes $1.275B National Quantum Initiative

September 17, 2018

Last Thursday the U.S. House of Representatives passed the National Quantum Initiative Act (NQIA) intended to accelerate quantum computing research and developm Read more…

By John Russell

CERN Project Sees Orders-of-Magnitude Speedup with AI Approach

August 14, 2018

An award-winning effort at CERN has demonstrated potential to significantly change how the physics based modeling and simulation communities view machine learni Read more…

By Rob Farber

Summit Supercomputer is Already Making its Mark on Science

September 20, 2018

Summit, now the fastest supercomputer in the world, is quickly making its mark in science – five of the six finalists just announced for the prestigious 2018 Read more…

By John Russell

New Deep Learning Algorithm Solves Rubik’s Cube

July 25, 2018

Solving (and attempting to solve) Rubik’s Cube has delighted millions of puzzle lovers since 1974 when the cube was invented by Hungarian sculptor and archite Read more…

By John Russell

Leading Solution Providers

US Leads Supercomputing with #1, #2 Systems & Petascale Arm

November 12, 2018

The 31st Supercomputing Conference (SC) - commemorating 30 years since the first Supercomputing in 1988 - kicked off in Dallas yesterday, taking over the Kay Ba Read more…

By Tiffany Trader

TACC’s ‘Frontera’ Supercomputer Expands Horizon for Extreme-Scale Science

August 29, 2018

The National Science Foundation and the Texas Advanced Computing Center announced today that a new system, called Frontera, will overtake Stampede 2 as the fast Read more…

By Tiffany Trader

HPE No. 1, IBM Surges, in ‘Bucking Bronco’ High Performance Server Market

September 27, 2018

Riding healthy U.S. and global economies, strong demand for AI-capable hardware and other tailwind trends, the high performance computing server market jumped 28 percent in the second quarter 2018 to $3.7 billion, up from $2.9 billion for the same period last year, according to industry analyst firm Hyperion Research. Read more…

By Doug Black

Intel Announces Cooper Lake, Advances AI Strategy

August 9, 2018

Intel's chief datacenter exec Navin Shenoy kicked off the company's Data-Centric Innovation Summit Wednesday, the day-long program devoted to Intel's datacenter Read more…

By Tiffany Trader

Germany Celebrates Launch of Two Fastest Supercomputers

September 26, 2018

The new high-performance computer SuperMUC-NG at the Leibniz Supercomputing Center (LRZ) in Garching is the fastest computer in Germany and one of the fastest i Read more…

By Tiffany Trader

Houston to Field Massive, ‘Geophysically Configured’ Cloud Supercomputer

October 11, 2018

Based on some news stories out today, one might get the impression that the next system to crack number one on the Top500 would be an industrial oil and gas mon Read more…

By Tiffany Trader

MLPerf – Will New Machine Learning Benchmark Help Propel AI Forward?

May 2, 2018

Let the AI benchmarking wars begin. Today, a diverse group from academia and industry – Google, Baidu, Intel, AMD, Harvard, and Stanford among them – releas Read more…

By John Russell

Google Releases Machine Learning “What-If” Analysis Tool

September 12, 2018

Training machine learning models has long been time-consuming process. Yesterday, Google released a “What-If Tool” for probing how data point changes affect a model’s prediction. The new tool is being launched as a new feature of the open source TensorBoard web application... Read more…

By John Russell

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