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

8. Haves vs. Have-Nots 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. 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. 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.

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 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 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 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 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 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 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 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 @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface. @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface.

14. “One Tweet” Definition of Cloud 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. 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. @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface. @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface.

15. “One Tweet” Definition of Cloud 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. 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. @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface. @addisonsnell Cloud is: Accessing part of your IT infrastructure or workflow through a web browser (or web browser-like) interface.

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 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