Intersect360’s HPC500 Member Call Discusses IBM/Lenovo Deal

June 4, 2014

SUNNYVALE, Calif., June 4 — Intersect360 Research recently held its quarterly HPC500 members-only call, focusing on IBM’s plans to sell its x86-based server lines and associated assets to Lenovo. The HPC500 is a group of industry leaders in HPC across government, academia and commercial organizations worldwide. All participants in the call influence future purchases of HPC equipment at their sites.

According to Chris Willard, Ph.D., Chief Research Officer of Intersect360 Research, “Upon completion of the IBM/Lenovo deal, Lenovo immediately becomes a major HPC system vendor — a unique position, given that the company currently has no representation in the HPC market.” According to Willard, after the deal is finalized IBM will still be an HPC vendor, but with a more specialized presence. Lenovo would need to acquire and retain two-thirds of IBM’s server revenue, without HP or Dell gaining, in order to become the number one-vendor in the HPC market.

With the market view established, the end-user discussion of the call focused on concerns about the transition, challenges for Lenovo, and the potential opportunity for other vendors to capitalize on the transition.

According to the call’s participants, IBM is working to make the transition as smooth as possible. Most reported that they had little to no concern about the sale and transition, given IBM’s communication with the participants immediately following the announcement, answering any questions and concerns their customers might have and identifying who their contacts (sales reps, system engineers, etc.) would be after the sale.

As one participant stated, “(The transition) is not one of my top three concerns.” Another stated that IBM has assured them that, “It will be business as usual.”

The future, however, is “up to Lenovo to make successful,” as one participant stated. “There are many equally capable HPC hardware vendors out there,” another HPC500 member agreed. Both comments emphasize that the success of the IBM/Lenovo deal depends on how well Lenovo proceeds.

The discussion also addressed the question of the participants’ likelihood of future purchases from Lenovo, given that it is a Chinese company. For some, that fact is a deal-stopper. “A U.S. supplier is required,” one participant stated. For another, the Chinese ownership is not a concern, as “most systems are already not manufactured in the U.S.”

Larger concerns were voiced regarding the type of vendor Lenovo will be in the future: “Will Lenovo be a partner or a white-box vendor?” IBM’s vendor-customer relationships were valued by many HPC500 members, with the benefits of this partnership ranging from access to IBM’s intellectual property to research grants to “their broad basket and depth of capability.” Many are waiting to see if these will be provided by Lenovo or if the company decides to “emulate the PC channel” in the HPC market. This group has made no firm assumptions, with one participant saying, “If Lenovo has long-term aspirations to expand their profile, it could be beneficial. We have no reason to think it will not be handled well.”

The last major issue discussed was which vendors have the opportunity to capitalize on this transition in future bids. One participant felt this deal “solidified HP and Dell’s position,” but it also “opens the door for a fourth bidder to go head-to-head with Lenovo.” Another participant pointed out that, “Lenovo is not on our approved supplier list, so they will have to get over that hurdle first.”

As far as who might be the fourth vendor, comments ranged from Cray/Appro to speculations of new entrants providing x86 HPC servers, such as Intel or Cisco offering lower-end HPC systems. Another HPC500 member pointed out that it is “hard to differentiate what the HPC vendors are offering because so much of that now has been moved to the chip,” and that there is “not that much difference between the vendor offerings.” This deal has one participant looking more at HPC cloud options.

About HPC500

The HPC500 is comprised of industry leaders who steer the direction of HPC and bring HPC technology to bear on challenging problems in science, engineering, and business. Members represent a worldwide diverse group of established HPC professionals from a cross-section of academic, government, and commercial organizations, spanning geographies, budget sizes, and application areas.

HPC users who are interested in joining the HPC500 are invited to visit HPC500.com to apply for membership.

About Intersect360 Research

Intersect360 Research is a market intelligence, research, and consulting advisory practice focused on suppliers, users, and policymakers across the High Performance Computing ecosystem. Intersect360 Research utilizes both user-based and supplier-based research to form a complete perspective of HPC market dynamics, trends, and usage models, including both technical and business applications.

More information on Intersect360 Research can be found at: www.intersect360.com.

Source: Intersect360 Research

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!

SC Bids Farewell to Denver, Heads to Dallas for 30th

November 17, 2017

After a jam-packed four-day expo and intensive six-day technical program, SC17 has wrapped up another successful event that brought together nearly 13,000 visitors to the Colorado Convention Center in Denver for the larg Read more…

By Tiffany Trader

SC17 Keynote – HPC Powers SKA Efforts to Peer Deep into the Cosmos

November 17, 2017

This week’s SC17 keynote – Life, the Universe and Computing: The Story of the SKA Telescope – was a powerful pitch for the potential of Big Science projects that also showcased the foundational role of high performance computing in modern science. It was also visually stunning. Read more…

By John Russell

How Cities Use HPC at the Edge to Get Smarter

November 17, 2017

Cities are sensoring up, collecting vast troves of data that they’re running through predictive models and using the insights to solve problems that, in some cases, city managers didn’t even know existed. Speaking Read more…

By Doug Black

HPE Extreme Performance Solutions

Harness Scalable Petabyte Storage with HPE Apollo 4510 and HPE StoreEver

As a growing number of connected devices challenges IT departments to rapidly collect, manage, and store troves of data, organizations must adopt a new generation of IT to help them operate quickly and intelligently. Read more…

SC17 Student Cluster Competition Configurations: Fewer Nodes, Way More Accelerators

November 16, 2017

The final configurations for each of the SC17 “Donnybrook in Denver” Student Cluster Competition have been released. Fortunately, each team received their equipment shipments on time and undamaged, so the teams are r Read more…

By Dan Olds

SC Bids Farewell to Denver, Heads to Dallas for 30th

November 17, 2017

After a jam-packed four-day expo and intensive six-day technical program, SC17 has wrapped up another successful event that brought together nearly 13,000 visit Read more…

By Tiffany Trader

SC17 Keynote – HPC Powers SKA Efforts to Peer Deep into the Cosmos

November 17, 2017

This week’s SC17 keynote – Life, the Universe and Computing: The Story of the SKA Telescope – was a powerful pitch for the potential of Big Science projects that also showcased the foundational role of high performance computing in modern science. It was also visually stunning. Read more…

By John Russell

How Cities Use HPC at the Edge to Get Smarter

November 17, 2017

Cities are sensoring up, collecting vast troves of data that they’re running through predictive models and using the insights to solve problems that, in some Read more…

By Doug Black

Student Cluster LINPACK Record Shattered! More LINs Packed Than Ever before!

November 16, 2017

Nanyang Technological University, the pride of Singapore, utterly destroyed the Student Cluster Competition LINPACK record by posting a score of 51.77 TFlop/s a Read more…

By Dan Olds

Hyperion Market Update: ‘Decent’ Growth Led by HPE; AI Transparency a Risk Issue

November 15, 2017

The HPC market update from Hyperion Research (formerly IDC) at the annual SC conference is a business and social “must,” and this year’s presentation at S Read more…

By Doug Black

Nvidia Focuses Its Cloud Containers on HPC Applications

November 14, 2017

Having migrated its top-of-the-line datacenter GPU to the largest cloud vendors, Nvidia is touting its Volta architecture for a range of scientific computing ta Read more…

By George Leopold

HPE Launches ARM-based Apollo System for HPC, AI

November 14, 2017

HPE doubled down on its memory-driven computing vision while expanding its processor portfolio with the announcement yesterday of the company’s first ARM-base Read more…

By Doug Black

OpenACC Shines in Global Climate/Weather Codes

November 14, 2017

OpenACC, the directive-based parallel programming model used mostly for porting codes to GPUs for use on heterogeneous systems, came to SC17 touting impressive Read more…

By John Russell

US Coalesces Plans for First Exascale Supercomputer: Aurora in 2021

September 27, 2017

At the Advanced Scientific Computing Advisory Committee (ASCAC) meeting, in Arlington, Va., yesterday (Sept. 26), it was revealed that the "Aurora" supercompute Read more…

By Tiffany Trader

NERSC Scales Scientific Deep Learning to 15 Petaflops

August 28, 2017

A collaborative effort between Intel, NERSC and Stanford has delivered the first 15-petaflops deep learning software running on HPC platforms and is, according Read more…

By Rob Farber

Oracle Layoffs Reportedly Hit SPARC and Solaris Hard

September 7, 2017

Oracle’s latest layoffs have many wondering if this is the end of the line for the SPARC processor and Solaris OS development. As reported by multiple sources Read more…

By John Russell

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

Google Releases Deeplearn.js to Further Democratize Machine Learning

August 17, 2017

Spreading the use of machine learning tools is one of the goals of Google’s PAIR (People + AI Research) initiative, which was introduced in early July. Last w Read more…

By John Russell

GlobalFoundries Puts Wind in AMD’s Sails with 12nm FinFET

September 24, 2017

From its annual tech conference last week (Sept. 20), where GlobalFoundries welcomed more than 600 semiconductor professionals (reaching the Santa Clara venue Read more…

By Tiffany Trader

Amazon Debuts New AMD-based GPU Instances for Graphics Acceleration

September 12, 2017

Last week Amazon Web Services (AWS) streaming service, AppStream 2.0, introduced a new GPU instance called Graphics Design intended to accelerate graphics. The Read more…

By John Russell

AMD Showcases Growing Portfolio of EPYC and Radeon-based Systems at SC17

November 13, 2017

AMD’s charge back into HPC and the datacenter is on full display at SC17. Having launched the EPYC processor line in June along with its MI25 GPU the focus he Read more…

By John Russell

Leading Solution Providers

EU Funds 20 Million Euro ARM+FPGA Exascale Project

September 7, 2017

At the Barcelona Supercomputer Centre on Wednesday (Sept. 6), 16 partners gathered to launch the EuroEXA project, which invests €20 million over three-and-a-half years into exascale-focused research and development. Led by the Horizon 2020 program, EuroEXA picks up the banner of a triad of partner projects — ExaNeSt, EcoScale and ExaNoDe — building on their work... Read more…

By Tiffany Trader

Delays, Smoke, Records & Markets – A Candid Conversation with Cray CEO Peter Ungaro

October 5, 2017

Earlier this month, Tom Tabor, publisher of HPCwire and I had a very personal conversation with Cray CEO Peter Ungaro. Cray has been on something of a Cinderell Read more…

By Tiffany Trader & Tom Tabor

Reinders: “AVX-512 May Be a Hidden Gem” in Intel Xeon Scalable Processors

June 29, 2017

Imagine if we could use vector processing on something other than just floating point problems.  Today, GPUs and CPUs work tirelessly to accelerate algorithms Read more…

By James Reinders

Cray Moves to Acquire the Seagate ClusterStor Line

July 28, 2017

This week Cray announced that it is picking up Seagate's ClusterStor HPC storage array business for an undisclosed sum. "In short we're effectively transitioning the bulk of the ClusterStor product line to Cray," said CEO Peter Ungaro. Read more…

By Tiffany Trader

Intel Launches Software Tools to Ease FPGA Programming

September 5, 2017

Field Programmable Gate Arrays (FPGAs) have a reputation for being difficult to program, requiring expertise in specialty languages, like Verilog or VHDL. Easin Read more…

By Tiffany Trader

HPC Chips – A Veritable Smorgasbord?

October 10, 2017

For the first time since AMD's ill-fated launch of Bulldozer the answer to the question, 'Which CPU will be in my next HPC system?' doesn't have to be 'Whichever variety of Intel Xeon E5 they are selling when we procure'. Read more…

By Dairsie Latimer

IBM Advances Web-based Quantum Programming

September 5, 2017

IBM Research is pairing its Jupyter-based Data Science Experience notebook environment with its cloud-based quantum computer, IBM Q, in hopes of encouraging a new class of entrepreneurial user to solve intractable problems that even exceed the capabilities of the best AI systems. Read more…

By Alex Woodie

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

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