January 2019 Summaries

Rescale highlights the economic impact of High-Performance Computing (HPC) on various industries, as examined in a Hyperion Research study based on nearly 700 case studies over three years. The study reveals that the average revenue generated per dollar spent on HPC is $332.80, with the Transportation, Government, and Oil and Gas sectors seeing the highest returns, while the Academic, Defense, and Manufacturing sectors see the least. In terms of profit, Government, Oil and Gas, and Academics lead, with Defense, Transportation, and Manufacturing lagging. Despite Transportation companies achieving the highest revenue, their profit margins are low, indicating a complex relationship between HPC investment and financial returns. The cost of innovation in HPC averages $11 million, driven primarily by scientific breakthroughs and research support, underscoring the necessity for organizations to assess their specific needs and inefficiencies when considering HPC investment. Overall, the study suggests HPC has a beneficial impact across sectors, although the data is skewed by outliers, and emphasizes the importance of a thorough analysis of organizational requirements to fully understand HPC's value.

Engineers often encounter operational inefficiencies, particularly in managing High-Performance Computing (HPC) resources, which can delay product development and time-to-market. Rescale offers a platform that addresses these issues by providing abundant computing resources through cloud partners like AWS, Azure, and IBM, thereby reducing queue times and enhancing productivity. By eliminating the constraints of on-premise HPC systems, engineers gain access to a diverse range of software and hardware, enabling faster simulations and more efficient research pipelines. Rescale's platform also includes management tools for tracking expenses and optimizing resource allocation, allowing engineering departments to improve their operations and financial management. The platform's capabilities have led to significant improvements in productivity and reduced time-to-solution for many customers, exemplified by companies like Dinex, which saw a 25% reduction in time-to-market.

Total Cost of Ownership (TCO) is traditionally used to determine the financial implications of owning assets like on-premise High-Performance Computing (HPC) systems by adding up all related expenses over their deployment period. However, this static financial tool becomes problematic when applied to dynamic environments like cloud-enabled HPC systems, where expenses are reactive and computing power is virtually limitless. While on-premise systems involve predictable expenses and limited computing power, cloud-based systems offer scalable resources with expenses linked to demand, allowing for greater flexibility and potentially more innovative research outcomes. The challenge arises when attempting to compare these two vastly different systems using TCO, as it fails to account for the benefits and rewards associated with cloud computing, such as access to the latest infrastructure and the elimination of queue times. This discrepancy highlights the inadequacy of TCO in evaluating cloud solutions, suggesting that a different approach is necessary to accurately assess the financial and operational benefits of cloud-enabled HPC.

Assessing the Total Cost of Ownership (TCO) for on-premise High-Performance Computing (HPC) systems involves a complex evaluation of both direct and indirect expenses, which extend beyond conventional costs like hardware, software, staffing, and power. While these are the more apparent elements, significant hidden costs can impact TCO, including facility requirements for cooling and power, staffing variability, underutilization implications, and technological obsolescence. These factors contribute to operational expenses and inefficiencies, such as lost productivity and delayed innovation. Additionally, the potential costs of forfeited rewards due to not employing the best technology can be substantial but challenging to quantify. The ongoing debate about comparing cloud-enabled and on-premise HPC systems underscores the need for a nuanced understanding of TCO, as organizations strive to optimize their computing infrastructure to meet evolving demands.