Modeling and Simulation at U.S. Manufacturers / Cloud Computing in HPC

1. Addison Snell, CEO, addison@intersect360.com Modeling and Simulation at U.S. Manufacturers / Cloud Computing in HPC Actionable Market Intelligence for High Performance Computing October 2010

2. Overview: Digital Manufacturing Study • Limitations to design and production • Levels of advanced computing adopted • Drivers and barriers for more advanced computation • Possible partnerships to drive adoption In partnership with Intersect360 Research, NCMS conducted a broad-based survey of U.S. manufacturers to assess adoption of “digital manufacturing” techniques.

3. “Digital Manufacturing” • The use of advanced computing technologies for simulations to guide engineering and production • Structural analysis • Aerodynamics • Crashworthiness • Environment testing • Stress testing • Process engineering • Manufacturability • Improve quality, faster time-to-market, lower costs

4. “High Performance Computing” • The use of clusters of servers and associated technologies for computation- or data-intensive tasks • Scaling up from the desktop environment • $19 billion for HPC products and services in 2009 • Usage spans industry (55%), government (28%), and academic research (17%) • Both research and production environments • Manufacturing is the top commercial segment, followed by biotechnology, finance, and energy Source: Intersect360 Research HPC Market Model and Forecast, July 2010, www.intersect360.com

5. Adoption Gap • Within industry, there is a significant disconnect in technology adoption between large and small companies • Large automotive and aerospace manufacturers have used scalable digital manufacturing for decades • Not a “pyramid” shape market, but “tree shape” – once companies adopt advanced computing, they are likely to scale it • Competitive disadvantage for smaller companies

6. NCMS / Intersect360 Research Study • 321 qualified respondents • Across range of industries (80%) and supporting academic, government and trade organizations (20%) • Executive summary released today • Full report available

7. Haves vs. Have-Nots • “Mod/Sim HPC” are doing modeling and simulation on HPC systems. • “Mod/Sim Desktop” are running those applications, but desktop only. • “3D Tools” are running 3D drawing tools (computer-aided design) on PCs. • “2D Tools” are running 2D drawing only, or nothing at all. 1 Total column is not an exact sum of other columns due to a small number of respondents who did not specify a level of technology usage.

8. Haves vs. Have-Nots • 56% of the HPC usage is at companies with over 10,000 employees. • 56% of those maxed out at 2D drawing have 20 or fewer employees. • 61% of companies with over 10,000 employees are using HPC. • Only 8% of companies with under 100 employees are using HPC. 1 Total column is not an exact sum of other columns due to a small number of respondents who did not specify a level of technology usage.

9. Drivers and Barriers for Non-Adopters • Among companies using 2D tools only: • There is a need: • “High product quality” is most critical factor to strategy • “Long development cycle” is most common limitation to development and production • But also significant barriers: • Cost of hardware and software • Lack of expertise internally and externally • Need to coordinate physical and digital results

10. What It Takes to Do More • Among companies doing modeling and simulation, but only at the desktop level: • 72% say increased adoption of digital manufacturing would be a competitive advantage • 82% feel they need more opportunity to test new technologies at reduced cost and risk • Ranked “not-for-profit manufacturing centers” as the most preferred potential partner for helping adoption

11. Conclusions • To improve U.S. manufacturing competitiveness, government programs should find ways to reach out to small and medium size manufacturers • Reduce cost and risk of technology adoption • Give access to technology resources, facilitate partnerships, provide expertise Full report and data set from Intersect360 Research. www.intersect360.com (888) 256-0124, info@intersect360.com

12. Overview: Cloud Computing in HPC • Survey of HPC users conducted in September 2010 • 156 qualified respondents • Heavy (heavier than normal) responses from academia • Research vs. production • Drivers, barriers, forecast for cloud usage for HPC • Divides respondents into categories of adoption: • Already using cloud • Considering cloud • Considered and decided against cloud • Have not considered cloud

13. “One Tweet” Definition of Cloud @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface. • Cloud is not a market, but rather a way to access resources • Cloud does not compete with HPC • Analysts must be careful not to double-count

14. “One Tweet” Definition of Cloud @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface. • This condition distinguishes cloud computing from web 2.0 or other internet application categories • Boundaries: • Salesforce.com? Part of your workflow. It counts. • Fishville? Unless you’re Zynga, it’s out.

15. “One Tweet” Definition of Cloud @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface. • This condition distinguishes cloud computing from grid or other utility computing models. • Web-like? Includes: • Some intranets are web-like but not technically web. • Some tablet apps are web-like also. • Not: Remote login, shell, command line, etc.

16. Public vs. Private Clouds • There are four primary variables to consider: • Ownership • Possession • Maintenance • Provisioning • All external = public cloud • All internal = private cloud • Mix and match = hybrid cloud

17. Brief Snapshot of Study • …

18. Actionable Market Intelligence for High Productivity Computing