Business Tech

IBM on Monday is expected to unveil Blue Insight, a massive business analytics cloud that will hold more than a petabyte of data. This internal cloud computing environment will be the basis for future external services.

Internally, IBM's effort is dubbed Blue Insight, a business analytics cloud that will give 200,000 employees access to key corporate data around the world. Blue Insight will suck in data from 100 different data stores and warehouses. The data will then be dished out to salespeople and developers.

According to IBM, Blue Insight is a showcase of the "eat your own dog food" mantra. The system is built using Cognos, IBM's business intelligence software, and hardware systems such as System Z, the company's mainframe (right).

Going forward, IBM said it will add structured and unstructured data to Blue Insight. Some of this data will include revenue forecasts and sales quotas, product breakdowns, queries from real-time data and inventory levels and defects.

Read more of "IBM launches private business analytics cloud; Eyes 'easily consumable' BI for the masses" at ZDNet.

The Cray XT5 supercomputer.

(Credit: Image courtesy of the National Center for Computational Sciences, Oak Ridge National Laboratory)

The Cray XT5 supercomputer known as "Jaguar" has finally clawed its way to the title of fastest computer in the world.

Sitting back at No. 2 on the Top500 list of supercomputers for more than a year, Jaguar overtook IBM's "Roadrunner" according to the twice-yearly list that will be unveiled Tuesday at the SC09 Conference in Portland, Ore.

Jaguar beat out the competition by showing it can process 1.75 petaflop/s, or quadrillions of floating point operations per second, according to the Top500 Linpack benchmark. IBM's Roadrunner was pushed back to No. 2 by posting a processing speed of 1.04 petaflop/s, a dip from the 1.105 petaflop/s it reached in a June 2009 test. The slower performance this time around is apparently due to a repartitioning of the system.

Every six months when the Top500 List is released the threshold to grab a place on it gets higher. The slowest supercomputer (No. 500) on November's list posted a speed of 20 teraflop/s, up from the 17.1 teraflop/s of six months ago. In other words, what is the slowest computer this time around would have been No. 336 in June.

Kraken, another Cray XT5 system, jumped up two places from its former No. 5 position by posting a processing performance speed of 832 teraflop/s. IBM's BlueGene/P, from Forschungszentrum Juelich in Germany, came in at No. 4 with 825.5 teraflop/s. At No. 5 is China's Tianhe-1, the highest ranking ever for a Chinese supercomputer.

The top 10, while still dominated by supercomputers housed in the United States, had just one newcomer. That would be Sandia National Laboratories' "Red Sky," a Sun Blade system that posted a Linpack performance of 423 teraflop/s.

Just as the last time the list was released, the Top500 list is made up mostly of Hewlett-Packard and IBM computers. HP accounted for 210 of this year's 500, and IBM 185. In terms of processors in use, Intel still enjoys the lion's share, with 80 percent. The most popular operating system is Linux, with 90 percent of the Top500.

Here's the Top 10:

• Jaguar, Cray, Oak Ridge National Laboratory (1.75 petaflop/s)

• Roadrunner, IBM, Los Alamos National Laboratory (1.04 petaflop/s)

• Kraken XT5, Cray, National Institute for Computational Sciences (832 teraflop/s)

• JUGENE, IBM, Forschungszentrum Juelich (825.5 teraflop/s)

• Tianhe-1, NUDT, National SuperComputer Center in Tianjin (563.1 teraflop/s)

• Pleiades, SGI, NASA Ames Research Center (544.3 teraflop/s)

• BlueGeneL, IBM, Lawrence Livermore National Laboratory (478.2 teraflop/s)

• BlueGene/P, IBM, Argonne National Laboratory (458.61 teraflop/s)

• Ranger, Sun, Texas Advanced Computing Center (433.20 teraflop/s)

• Red Sky, Sun, Sandia National Laboratories (423.9 teraflop/s)

For the full Top500 List head to the official site.

With a nod toward the heterogeneous application development environments that exist in most enterprise IT departments, IBM on Wednesday launched a pair of services targeted at building cloud applications.

The first, the IBM Smart Business Development and Test on the IBM Cloud, is a cloud service hosted in IBM's data centers that provides tools and interfaces designed to support developers using Java, .NET, and Open Source environments. This service provides computing and storage capacity, and support for WebSphere middleware, Rational Software Delivery Services, and its Information Management database. It also provides "pre-configured integrations" of some Rational services based on IBM's Jazz framework, its collaborative software platform.

There are no pre-configured integrations announced for third-party or open source tools or languages.

In addition to the Smart Business offering, IBM is adding private cloud-targeted tools and services to the IBM Rational Software Delivery Services for Cloud Computing offering. These tools and services target three key elements of the development and testing of cloud applications:

• Agile development services, aimed at enabling collaborative development and testing through a set of best practices.

• An integrated set of services for test management and planning and test lab management.

• Tools, such as IBM Rational Asset Manager, which are targeted at increasing the efficiency of distributed application development teams.

By combining the expertise gained by IBM's Global Services organizations and the Rational Lab Services team in building and delivering development and test tools and practices in IBM-based clouds, the company hopes to become a one-stop shop for companies looking for a solid return on investment from adopting the cloud model in development and test.

IBM Smart Business Development and Test on the IBM Cloud can be accessed as a free beta, and the IBM Rational Software Delivery Services for private clouds are also available in beta through the companies sales force.

(Credit: IBM)

IBM on Wednesday announced a program designed to help educators and students pursue cloud-computing initiatives and better take advantage of collaboration technology in their studies.

The IBM Cloud Academy, announced at the Educause annual conference, includes a global roster of educational institutions as initial participants. Educause is a nonprofit association whose mission is to advance higher education by promoting the intelligent use of information technology.

IBM will provide the cloud-based infrastructure for the program, with some basic collaboration tools available at the outset. IBM's LotusLive service provides the basis for the new offering. Participants will immediately be able to do some very basic tactical functions on the new system:

• Create working groups on areas of interest to the education industry
• "Jam" on new innovations for clouds in education-related areas with IBM developers
• Work jointly on technical projects across institutions
• Share research findings and exchange new research ideas

Shared research across universities and other higher-learning institutions remains a vital part of technological innovation, but many programs don't have formal tool sets in place. Cloud services are a logical place to run these types of programs, especially as international groups need immediate access to data from their partners.

While we're all familiar with the steady increase in the number of cores in mainstream PC and server processors, the corresponding progress in the embedded-processor market has been anything but steady.

With mainstream PC microprocessors standardizing on four-core designs such as Intel's Core i7 and leading-edge server chips ranging from 8 to 16 cores, single-core chips are no longer competitive. For embedded systems, however, one core may still be the right answer; if more are needed, the choices range up into the hundreds.

The Tilera Tile-Gx100 combines 100 independent 64-bit integer processor cores and cryptographic accelerators with memory, network, and PCI Express interfaces.

(Credit: Tilera Corporation)

The latest announcement in the many-core embedded processor market is Tilera's Tile-Gx family, which combines 16 to 100 64-bit integer processor cores with cryptographic accelerators and off-chip interfaces for memory, networking, and PCI Express. I met with Tilera before last week's announcement to discuss the technical and business issues related to the Tile-Gx.

The technical details
San Jose, Calif.-based Tilera is eager to set itself apart from the many other chip companies competing in its target markets. Unlike most embedded processors with high core counts, for example, Tilera's design allows its cores to operate truly independently, even to the extent of running different operating systems if needed. More commonly, groups of tiles will be combined to run a single task that is part of a larger workload. In this way, one chip can operate like a cluster of multiprocessor systems.

Between this distinction and the fact that cores in the Tile-Gx family are a full 64 bits wide, Tilera claims the Tile-Gx100 is the "world's first 100-core processor." I think that's just a little too broad a claim, personally, since companies such as Clearspeed and Xelerated have previously made similar claims for their chips. Even more significantly, the Tile-Gx100 doesn't exist yet. It won't be a real product until early 2011, according to Tilera's current schedule.

Tile-Gx processors aren't something most CNET readers will ever knowingly use, though these chips will likely, eventually, help carry traffic over the public Internet and through larger corporate networks. But they do provide an excellent example of the issues facing PC processor vendors as core counts continue to grow.

Consider the Tile-Gx100 block diagram shown above. It's easy to imagine that this chip can get a lot of work done. Every core can run up to three instructions per cycle at up to 1.5GHz. It has dedicated hardware accelerators for cryptography and network packet processing. The network interfaces can implement up to eight 10Gb Ethernet ports. The chip also has four DDR3 memory interfaces; to reduce DRAM accesses, every core has 320KB of local cache memory. (The total amount of cache memory in the Tile-Gx100, about 32MB, matches that of IBM's Power7 processor, which has only eight cores.)

The need for balance
It's not so easy to keep all these resources busy, however. The more complicated a chip gets, generally speaking, the more difficult it becomes to make full use of its resources. This is what we often call the balance between hardware and software.

Tilera will offer four products in the Tile-Gx family with 16, 36, 64, and 100 cores and corresponding differences in memory and networking support. This range of products helps meet the needs of different applications, but each product still needs a particular balance of application requirements for maximum efficiency.

So here lies Tilera's great challenge--finding software applications that need a large amount of CPU performance and that also:

1. Are highly parallel, so they can keep many cores busy.
2. Don't need much (if any) floating-point math, since the Tile-Gx doesn't do that.
3. Can benefit from cryptographic acceleration.
4. Consume large amounts of network bandwidth.

Tilera wants customers to think of its chips as "general-purpose" processors, but as this list shows, they're better for some purposes than for others. As PC processors reach higher core counts and integrate more functionality, they too will become more sensitive to application requirements. Integration eventually reaches a point where additional complexity adds no practical value. And the closer PC processor vendors approach that limit, the more difficult it will become to sell their latest, greatest, most complicated chips.

Network processing is the most natural fit for Tilera's capabilities, particularly high-level services like virus scanning as I discussed in September (see "Insatiable demand for mobile data challenges industry"). Internet service providers rarely provide such services for PC users, since PCs can do their own scanning--but mobile phones and other Internet appliances often can't, so these services are seeing increasing demand.

The networking market, unfortunately, is not large enough to support a company like Tilera. Although there is a lot of networking equipment sold each year, each company in the business has its own ideas about how this processing should be done. A single chip design could never capture the majority of this potential demand.

Further, the larger equipment vendors often have policies in place against relying too heavily on individual suppliers, especially small start-ups. They will commonly design different products using different chip-level technology so that the failure of a single supplier--or the purchase of a supplier by a competing equipment vendor--will have only a limited effect on their bottom line.

New business opportunities
Tilera is working to develop new markets for its current TilePro and future Tile-Gx parts. The most significant of these new markets is cloud computing, which may favor solutions like Tilera's that offer higher performance per watt.

That's the metric Tilera touts most heavily for the Tile-Gx, promising 10 times the performance per watt of Intel's Westmere-EP, a six-core 32nm processor that Intel will begin shipping in 2010, which is aimed at high-efficiency servers. (Incidentally, I commend Tilera for making this comparison; Westmere-EP is exactly what they'll be competing against. Too often, chip companies will try to make themselves look better by comparing next year's products with last year's competition.)

Although 10x is a critical multiplier in this business (see my post "The factor factor"), such an advantage doesn't necessarily guarantee success. Tilera has done everything it can to minimize the difficulties associated with software development by adopting industry-standard development tools such as GCC and Eclipse, but its Tile chips still can't run Windows and it just can't match the developer relationships that companies like Advanced Micro Devices and Intel have established.

Fortunately, Tilera is small and relatively efficient for a chip company. Last month, Tilera announced that Quanta Computer invested $10 million in the company based on Quanta's interest in cloud computing. Tilera said it has enough funding to reach cash-flow breakeven in 2011, assuming the Tile-Gx reaches market and achieves the kind of success Tilera predicts.

I remain skeptical, but hopeful. I think there's no question that in the long run, there will be plenty of demand for complex, many-core processors like Tilera's. But will Tilera still be around by that time? And in the long run, once this demand develops, larger companies such as Intel will have their own offerings.

Can Tilera carve out a market niche that it can defend against such strong competition? I just don't know, but I'm always glad to see people trying new ideas.

A high-ranking IBM executive charged with insider trading connected to the Galleon Group has left the company.

Robert Moffat, a senior vice president who was once thought to be a possible future IBM chief executive candidate, had been placed on leave following charges brought by the U.S. Attorney earlier this month against him and five others.

The case revolves around Raj Rajaratnam, who founded the Galleon Group, a New York-based hedge fund that manages $7 billion in funds. Federal prosecutors charged Rajaratnamm and five others, including Moffat, with securities fraud, alleging they were involved in insider trading of well-known tech companies, including Intel, Google, AMD, and IBM.

The government alleged that Moffat discussed future IBM and Sun Microsystems earnings announcements and the reorganization of Advanced Micro Devices with Danielle Chiesi, an employee of New Castle, a hedge fund.

Moffat "is no longer an employee of IBM," according to a statement by IBM on its internal communications network.

Rod Adkins, who was named acting head of IBM's Systems and Technology Group on October 19, has been appointed senior vice president, STG, according to IBM. Adkins, 51 years old, joined IBM in 1981, and has held a variety of product development, business operations, and general management positions.

Adkins served as general manager of desktop systems at the former IBM PC company. He also was general manager for Unix systems in the Systems and Technology Group.

Kerry Lawrence, Moffat's lawyer has said Moffat was "shocked" by the charges. Alan Kaufman, Chiesi's attorney, said his client would plead innocent to the charges.

Federal prosecutors have charged a prominent hedge-fund manager and five others with securities fraud resulting from insider trading involving some of the tech industry's best-known companies, including Intel, Google, and IBM.

Raj Rajaratnam of Galleon Group was arrested Friday in New York according to various reports and charged with 13 counts of securities fraud and conspiracy following a FBI investigation into Galleon Group's trading patterns. Also charged in the complaint, filed in U.S. District Court for the Southern District of New York, were co-conspirators Rajiv Goel of Intel and Anil Kumar of McKinsey, which provided consulting services to AMD.

A separate complaint charges two employees of New Castle Partners, another hedge fund, with insider trading along with IBM executive Robert Moffat, senior vice president and group executive for IBM's Systems and Technology Group. Danielle Chiesi and Mark Kurland of New Castle Partners allegedly exchanged information with Rajaratnam regarding the negotiation process surrounding AMD's decision to spin off its chip-making arm and receive outside investment, and obtained other insider information for the purpose of trading in Akamai and Sun Microsystems.

Galleon Group told CNBC that it was unaware of the investigation but planned to cooperate with authorities.

An Intel representative confirmed that Goel works in the treasury department of Intel's finance organization, and has been "placed on administrative leave as we look into this matter." Intel said it was never contacted by authorities regarding the investigation.

McKinsey said in a statement that it was "distressed" about Kumar's involvement in the case and was "looking into the matter urgently. AMD said it was looking at the complaints and had no further comment. IBM declined to comment.

A representative for Akamai did not immediately return a call seeking comment.

According to the complaint, Rajaratnam obtained information about strategic investments that Intel and others were about to make in Clearwire from Goel, and details about AMD's proposed fab spinoff from Kumar and Chiesi. Galleon Group and New Castle Partners then allegedly used that information to trade in shares of Clearwire and AMD, resulting in millions of dollars in profits.

Moffat is also said to have provided details about AMD's GlobalFoundries spinoff, which required IBM's approval due to an extensive technology-sharing partnership between the two companies. In addition, Moffat allegedly gave the traders information related to upcoming earnings announcements from IBM and Sun, which IBM was considering acquiring in early 2009.

Rajaratnam also had hired an individual identified in the complaint only as a "confidential witness" who has been cooperating with the FBI since November 2007 after agreeing to plead guilty to securities fraud and conspiracy. The witness had insider contacts at Polycom and a company called Market Street, which helps publicly traded companies--such as Google--prepare earnings reports.

The FBI said Galleon Group was able to learn through its Market Street contacts that Google's second-quarter 2007 earnings results were going to miss analyst expectations, which would usually send the stock down the following day. Before Google's earnings were released, Galleon Group purchased put options and sold Google's stock short in hopes of turning a profit, which, of course, they did, to the tune of $8 million.

Shares of Polycom and Hilton Hotels were also involved in the insider trading, according to the complaint. The FBI said it obtained its information by placing a wiretap on several phones--including Rajaratnam's mobile phone--as well as the participation of confidential witnesses.

Rajaratnam was named to Forbes' 2009 list of the world's billionaires, with an estimated net worth of $1.3 billion. He is a former employee of Needham & Co., an investment bank.

IBM delivered a solid third quarter that featured better-than-expected profit and revenue growth. The company also upped its earnings targets for 2009.

IBM on Thursday reported third-quarter net income of $3.1 billion, or $2.40 a share, on revenue of $23.6 billion, down 7 percent from a year ago. Wall Street was looking for earnings of $2.38 a share on revenue of $23.4 billion.

The outlook was also solid. IBM is expecting 2009 earnings to be about $9.85 a share, up from a previous projection of $9.70 a share. Wall Street had IBM at $9.78 for the year...

Read more of "IBM delivers solid quarter, ups 2009 earnings outlook" at ZDNet's Between the Lines.

If recent research is any indication, Amazon.com and Google are winning the cloud game.

Evans Data on Tuesday released a report (registration required) on how developers perceive cloud service providers related to cloud services offerings, including their completeness and the companies' ability to execute on the vision.

Janel Garvin, the founder of Evans Data and the author of the report, provides excellent insight into the current state of the market and how quickly things could change, if certain large vendors (notably AT&T and Microsoft) got their acts together more quickly.

Given their robust services, it isn't surprising that Amazon and Google top the list. And although IBM, VMware, and Microsoft trail, each offers important components of cloud infrastructure.