IBM Rides Supercomputer Crown To $223

-7.44%
Downside
191
Market
177
Trefis
IBM: International Business Machines logo
IBM
International Business Machines

International Business Machines‘ (NYSE:IBM) Sequoia is the world’s fastest supercomputer, overtaking Fujitsu’s K-Computer currently installed at the RIKEN Advanced Institute for Computational Science in Japan. The Sequoia supercomputer was created for use by the Department of Energy’s National Nuclear Security Administration (NNSA) which manages the nuclear weapons stockpile. The latest supercomputer has significantly higher processing capability compared to its nearest rival. It chalked up 16.32 petaflops while the K Computer hit 10.51 petaflops. A petaflop is 1,000 trillion floating point operations a second.

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More Than Just Bragging Rights

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Initially IBM announced that it would be used for research into various fields such as astronomy, energy, human genome sequencing and climate change studies in addition to monitoring and ensuring safety and reliability of U.S. nuclear weapons. However, considering the nature and security requirements of a nuclear weapons related system, it is now being used exclusively by the National Nuclear Safety Administration (NNSA) and academic circles are unlikely to get access to it.

The advantage for IBM however stems from the Big Data opportunities that this supercomputer unlocks as further deals are likely to be made leveraging on the experience from this installation. By installing the world’s fastest and most power efficient supercomputer, IBM has proved its expertise in servicing needs of complex Big Data Analytics Opportunities. The Sequoia system uses the Blue Gene/Q architecture.

The Blue Gene project aimed at designing supercomputers with high operating speeds and low power consumption and the Blue Gene/Q is the third in the design series. [1]

Technology Services constitute 25% percent of our current Trefis Price Estimate, and we expect revenues from Big Data Analytics to grow in the coming quarters.

We currently have a $223 Trefis price estimate for IBM, which is ~10% above the current market estimate.

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Notes:
  1. IBM’s Sequoia Towers Above All Other Supercomputers, www.technewsworld.com, June 18, 2012 []