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Cybera Summit 2010:
The Economics Behind
Cyberinfrastructure (CI)
  Earl J. Dodd, Executive Director of RMSC
Rocky Mountain Supercomputing Centers, Inc.

    Agenda
     Thank You!
     Cyberinfrastructure (CI) Evolution
     What is RMSC and its Business Model?
     Focusing in on the Public-Private Partnership
     Next Step…




2          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

    RMSC Announcement…
    Susan Baldwin
    Executive Director
    Compute/Calcul Canada
    Has joined the RMSC Board of Directors!
    Welcome Susan…




3         The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

    The Economics of CI Evolution




      The                                                          The
                                   Today
      Past                                                        Future




4            The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

    Emerging from the CI Desert


 Great North American
Supercomputing Desert




                                                         Great North American
                                                           Supercomputing
                                                                Desert



5          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

    The Past CI Model




      The                                                          The
                                   Today
      Past                                                        Future




6            The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

    Traditional CI Investment Model




7          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

    Improving the CI Investment (Slightly)




8          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

    Today’s CI Model




      The                                                          The
                                   Today
      Past                                                        Future




9            The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 A Better CI Investment Model




                                                        Minimal Threshold System




       Workload Management
        at Alliance Partners


10      The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 Digital Infrastructure
  A dynamic shared platform for business & industry
   plus advanced education, science & discovery
  Digital infrastructure includes:
     –Repositories of complex data sets
     –Network-accessible research equipment
     –Digital devices and distributed sensors
     –High-speed networks
     –Related tools and services
     –Rapidly increasing computing capacity
     –Support and research experts (HQP)
11        The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 RMSC’s Core Mission
  Stimulate & Foster Economic Development (Jobs)
     by creating a new economy for the State
      – State-wide effort; regional focus; international footprint
      – Touching many different sectors of the economy

  Represents Core Investment in Economic Recovery
      – Public-Private Partnership among RMSC, State of Montana,
       Governments and key HPC Hardware and Software Vendors
      – Unique Business Model – targeting small and medium sized businesses
       and tribal enterprises
      – Unprecedented Access to Supercomputing Resources

  Direct Expression of the Governor’s
     Vision for Montana
      – HPC for the New Main Street™


12           The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 RMSC Proof-of-Concepts (Selected Domains)
                                                         Precision Agriculture             Wildfire Modeling
     Wind Energy & Placement       Climate Modeling




                               Erosion Modeling         Financial Analytics
Carbon Management                                                                Surveillance & Pattern Recognition




 Superfund Data Metrics        Syndromic Surveillance    Medicare/Medicaid Fraud     Electronic Design Automation




13                The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010                © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 The Future CI Model




     The                                                          The
                                  Today
     Past                                                        Future




14          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 Putting all the Pieces Together for CI
     Int’l competitive research                                           Private Sector, Tribes,
     Local & national needs                                               Academia, Partnerships
     Projects (“Land, Energy,
                                             R&D, Applications,
                                                                          & Alliances, Government
     Water, Health”)                       IP Commercialization
                                            [Business Domains]

                    Supply                                               Demand
                                                 Drive
                                               High-Tech
                                              Job Growth
                                             in the Region

               Human Resource                                     Business Innovation
                 Development                                       & Transformation
               [People & Skills]                                      [“Sandbox”]

                                                Cyber-
                     Education, Training                      Core HPC infrastructure
                              Outreach      infrastructure    Supercomputing Services


15              The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 Enabling Enterprises to Run Their Business
 On A Dynamic Infrastructure HPC Cloud
                                   HPC                        Service
        Cloud              Cyberinfrastructure &            Creation &
      Consumers            Application Provider             Deployment

       Consumer                 Distributed                  Business,
        Requests                 Networked                  Policy & SLA
      & Operations             Management CI                Management


         …

      Automated                   Workload                    Services
     Orchestration               Management                   Delivery




16      The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 RMSC Business Model
                                                                                          Strategy,
                                                                                        Architecture,
     RMSC Alliance Partners                                                            Business Model,
                                                                                       and Integration
                                                                                             for
 Infrastructure                                                                          HPC Cloud
 • Compute
 • Storage
 • Network
                                Centers of Excellence                                     Solutions
 • Off-load Engines
 • Visualization


 Operating                        Intelligent
 Environments
 • Linux
 • Windows
                                 Frameworks
                                                  HPC Cloud Consumers
 • Hyper Visors                   Problem
 • SaaS Enablement                 Domain
                                                  Consumer Services         Removed Barriers
                                  Specifics
 Intellectual                                     • Commercial              • Culture and Inertia
 Capability                        Subject        • Government              • Frameworks, Resources, Tools
                                                  • Academia                • Security, Price, Support
 • Application Porting             Matter
 • Optimization                    Experts
 • Consulting




17                       The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010            © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 Making the Economics Behind CI Work…




     The                                                          The
                                  Today
     Past                                                        Future




18          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

  Government & Industry Must Jointly Strengthen Their
  Strategic Focus on Deploying CI for Economic Benefit

                 Reduce costs                  Improve design & CI
          Find new revenues                    Create high-tech, high-$ jobs
Drive regulatory initiatives                   Improve business climate
Collaborate broadly, better                    Drive entrepreneurism
      Seek novel bus. models                   Public-Private Partnerships
         Ensure public safety                  Improve preparedness
      Maintain social stability                Create high-tech, high-$ jobs
      Stimulate the economy                    Create high-tech, high-$ jobs

 19          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

 U.S. Small Business Administration (SBA) Top 10
 Reasons to Love Small Business
 10. Small businesses make up more than 99.7% of all employers.
 9. Small businesses create more than 50% of the nonfarm private GDP.
 8. Small patenting firms produce 13 to 14 times more patents per employee than
    large patenting firms.
 7. The 22.9 million small businesses in the US are located in virtually every
    neighborhood.
 6. Small businesses employ about 50% of all private sector workers.
 5. Home-based businesses account for 53% of all small businesses.
 4. Small businesses make up 97% of exporters and produce 29% of all export value.
 3. Small businesses with employees start-up at a rate of over 500,000 per year.
 2. Four years after start-up, half of all small businesses with employees remain open.
 1. The latest figures show that small businesses create 75% of the net new jobs in
    our economy.

20          The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.

Next Step…
 Develop “the new” Econometrics Model around CI &
  Small- to Medium-sized Enterprises (SMEs)
     –Build a first-of-a-kind economic model to
      demonstrate the economic impact of the HPC
      Cloud and related CI (i.e., how directly and
      indirectly does CI affect the region,
      the Province or State and the community)
     –Unfortunately, to the best of our knowledge,
      no one is even thinking about modeling economic
      impact of CI and SMEs for sustainable growth

 RMSC offers its support, along with Dr. David Park
     of George Washington Univ, to start the
     development ▬ Any one else game to play?
21         The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC
Rocky Mountain Supercomputing Centers, Inc.



                         Thank You !
     Earl J. Dodd                           RMSC, Inc.
     Executive Director                     Suite 310
     +1-406-533-6733 Office                 65 E. Broadway
     earl.dodd@rmscinc.org                  Butte, MT 59701-9305 USA

                                            +1-406-533-6733 Office
                                            +1-406-533-6830 Fax

                                            info@rmscinc.org
                                            http://www.rmscinc.org




22         The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010   © 2010 RMSC

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The Economics Behind Cyberinfrastructure - Earl Dodd, Rocky Mountain Supercomputing Centres

  • 1. Cybera Summit 2010: The Economics Behind Cyberinfrastructure (CI) Earl J. Dodd, Executive Director of RMSC
  • 2. Rocky Mountain Supercomputing Centers, Inc. Agenda  Thank You!  Cyberinfrastructure (CI) Evolution  What is RMSC and its Business Model?  Focusing in on the Public-Private Partnership  Next Step… 2 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 3. Rocky Mountain Supercomputing Centers, Inc. RMSC Announcement… Susan Baldwin Executive Director Compute/Calcul Canada Has joined the RMSC Board of Directors! Welcome Susan… 3 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 4. Rocky Mountain Supercomputing Centers, Inc. The Economics of CI Evolution The The Today Past Future 4 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 5. Rocky Mountain Supercomputing Centers, Inc. Emerging from the CI Desert Great North American Supercomputing Desert Great North American Supercomputing Desert 5 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 6. Rocky Mountain Supercomputing Centers, Inc. The Past CI Model The The Today Past Future 6 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 7. Rocky Mountain Supercomputing Centers, Inc. Traditional CI Investment Model 7 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 8. Rocky Mountain Supercomputing Centers, Inc. Improving the CI Investment (Slightly) 8 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 9. Rocky Mountain Supercomputing Centers, Inc. Today’s CI Model The The Today Past Future 9 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 10. Rocky Mountain Supercomputing Centers, Inc. A Better CI Investment Model Minimal Threshold System Workload Management at Alliance Partners 10 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 11. Rocky Mountain Supercomputing Centers, Inc. Digital Infrastructure  A dynamic shared platform for business & industry plus advanced education, science & discovery  Digital infrastructure includes: –Repositories of complex data sets –Network-accessible research equipment –Digital devices and distributed sensors –High-speed networks –Related tools and services –Rapidly increasing computing capacity –Support and research experts (HQP) 11 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 12. Rocky Mountain Supercomputing Centers, Inc. RMSC’s Core Mission  Stimulate & Foster Economic Development (Jobs) by creating a new economy for the State – State-wide effort; regional focus; international footprint – Touching many different sectors of the economy  Represents Core Investment in Economic Recovery – Public-Private Partnership among RMSC, State of Montana, Governments and key HPC Hardware and Software Vendors – Unique Business Model – targeting small and medium sized businesses and tribal enterprises – Unprecedented Access to Supercomputing Resources  Direct Expression of the Governor’s Vision for Montana – HPC for the New Main Street™ 12 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 13. Rocky Mountain Supercomputing Centers, Inc. RMSC Proof-of-Concepts (Selected Domains) Precision Agriculture Wildfire Modeling Wind Energy & Placement Climate Modeling Erosion Modeling Financial Analytics Carbon Management Surveillance & Pattern Recognition Superfund Data Metrics Syndromic Surveillance Medicare/Medicaid Fraud Electronic Design Automation 13 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 14. Rocky Mountain Supercomputing Centers, Inc. The Future CI Model The The Today Past Future 14 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 15. Rocky Mountain Supercomputing Centers, Inc. Putting all the Pieces Together for CI Int’l competitive research Private Sector, Tribes, Local & national needs Academia, Partnerships Projects (“Land, Energy, R&D, Applications, & Alliances, Government Water, Health”) IP Commercialization [Business Domains] Supply Demand Drive High-Tech Job Growth in the Region Human Resource Business Innovation Development & Transformation [People & Skills] [“Sandbox”] Cyber- Education, Training Core HPC infrastructure Outreach infrastructure Supercomputing Services 15 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 16. Rocky Mountain Supercomputing Centers, Inc. Enabling Enterprises to Run Their Business On A Dynamic Infrastructure HPC Cloud HPC Service Cloud Cyberinfrastructure & Creation & Consumers Application Provider Deployment Consumer Distributed Business, Requests Networked Policy & SLA & Operations Management CI Management … Automated Workload Services Orchestration Management Delivery 16 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 17. Rocky Mountain Supercomputing Centers, Inc. RMSC Business Model Strategy, Architecture, RMSC Alliance Partners Business Model, and Integration for Infrastructure HPC Cloud • Compute • Storage • Network Centers of Excellence Solutions • Off-load Engines • Visualization Operating Intelligent Environments • Linux • Windows Frameworks HPC Cloud Consumers • Hyper Visors Problem • SaaS Enablement Domain Consumer Services Removed Barriers Specifics Intellectual • Commercial • Culture and Inertia Capability Subject • Government • Frameworks, Resources, Tools • Academia • Security, Price, Support • Application Porting Matter • Optimization Experts • Consulting 17 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 18. Rocky Mountain Supercomputing Centers, Inc. Making the Economics Behind CI Work… The The Today Past Future 18 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 19. Rocky Mountain Supercomputing Centers, Inc. Government & Industry Must Jointly Strengthen Their Strategic Focus on Deploying CI for Economic Benefit Reduce costs  Improve design & CI Find new revenues  Create high-tech, high-$ jobs Drive regulatory initiatives  Improve business climate Collaborate broadly, better  Drive entrepreneurism Seek novel bus. models  Public-Private Partnerships Ensure public safety  Improve preparedness Maintain social stability  Create high-tech, high-$ jobs Stimulate the economy  Create high-tech, high-$ jobs 19 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 20. Rocky Mountain Supercomputing Centers, Inc. U.S. Small Business Administration (SBA) Top 10 Reasons to Love Small Business 10. Small businesses make up more than 99.7% of all employers. 9. Small businesses create more than 50% of the nonfarm private GDP. 8. Small patenting firms produce 13 to 14 times more patents per employee than large patenting firms. 7. The 22.9 million small businesses in the US are located in virtually every neighborhood. 6. Small businesses employ about 50% of all private sector workers. 5. Home-based businesses account for 53% of all small businesses. 4. Small businesses make up 97% of exporters and produce 29% of all export value. 3. Small businesses with employees start-up at a rate of over 500,000 per year. 2. Four years after start-up, half of all small businesses with employees remain open. 1. The latest figures show that small businesses create 75% of the net new jobs in our economy. 20 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 21. Rocky Mountain Supercomputing Centers, Inc. Next Step…  Develop “the new” Econometrics Model around CI & Small- to Medium-sized Enterprises (SMEs) –Build a first-of-a-kind economic model to demonstrate the economic impact of the HPC Cloud and related CI (i.e., how directly and indirectly does CI affect the region, the Province or State and the community) –Unfortunately, to the best of our knowledge, no one is even thinking about modeling economic impact of CI and SMEs for sustainable growth  RMSC offers its support, along with Dr. David Park of George Washington Univ, to start the development ▬ Any one else game to play? 21 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC
  • 22. Rocky Mountain Supercomputing Centers, Inc. Thank You ! Earl J. Dodd RMSC, Inc. Executive Director Suite 310 +1-406-533-6733 Office 65 E. Broadway earl.dodd@rmscinc.org Butte, MT 59701-9305 USA +1-406-533-6733 Office +1-406-533-6830 Fax info@rmscinc.org http://www.rmscinc.org 22 The Economics Behind Cyberinfrastructure (CI) – Cybera Summit 2010 © 2010 RMSC