The Ugly, Hidden and Underestimated Costs of Building an On-Premise HPC System

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.