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- <text id=89TT1129>
- <title>
- May 01, 1989: And Then There Was One
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1989
- May 01, 1989 Abortion
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- NATION, Page 56
- And Then There Was One
- </hdr><body>
- <p>A major U.S. contender drops out of the supercomputer race
- </p>
- <p> Monday was a sad day in American computing," declared Doyle
- Knight, president of New Jersey's John von Neumann National
- Supercomputer Center. What dismayed Knight was the announcement
- last week by Control Data, based in Minneapolis, that it would
- halt its money-losing six-year foray into the growing world
- market for supercomputers. The decision leaves Cray Research,
- its crosstown rival and the industry leader, as the only U.S.
- supercomputer maker at a time when Japan's industry is moving
- vigorously into the field.
- </p>
- <p> First introduced by Cray in 1976, supercomputers possess
- vast number-crunching power, which has become increasingly
- valued in applications ranging from oil exploration to the
- design of new drugs. Supercomputer sales are expected to reach
- $1.2 billion this year on shipments of 130 to 150 machines, up
- from $925 million in 1988. Control Data had sold 34 of its
- ETA-model supercomputers, or about 12% of the world's installed
- machines (vs. 63% for Cray).
- </p>
- <p> The ETA machines offered such innovations as ultradense
- clusters of circuit boards cooled by liquid nitrogen, but
- lacked adequate software. Control Data lost about $200 million
- on supercomputers during the past three years, and Chairman
- Robert Price thinks the venture would have consumed plenty more.
- Said he: "Let's put it this way: there are less risky ways to
- bet $200 million in the computer industry."
- </p>
- <p> Japan's quest to build the high-powered machines began in
- 1981, when the government arranged a $136 million
- supercomputer-research project. Three Japanese manufacturers --
- Fujitsu, NEC and Hitachi -- account for 24% of the
- supercomputers sold to date. So far only U.S. and Japanese
- companies have entered the race. While Cray's machines still
- lead in worldwide sales, Japanese manufacturers may be pulling
- ahead by some measures of supercomputer performance, notably
- processing speed. Earlier this month NEC introduced a new
- series, called SX-3, billed as the world's fastest
- supercomputers, even though the machines will not be available
- until June 1990. Cray discounts NEC's claim to top speed,
- contending that such measurements are based on "theoretical peak
- performance" figures rather than a practical application. NEC
- insists that the SX-3's key elements have been tested.
- </p>
- <p> The exit of Control Data could aggravate U.S.-Japan trade
- friction over supercomputers. Says Etsuro Yamada, a spokesman
- for Fujitsu: "The fact is that Control Data lost in a fight with
- Cray, but that may not be the way the Americans will look at
- it." The U.S. has long complained about the Japanese
- government's failure to buy U.S.-made supercomputers. The two
- countries signed a 1987 accord in which Tokyo agreed to
- eliminate discrimination against U.S. supercomputer makers in
- the purchasing procedures of Japanese government agencies and
- universities. But since then, Tokyo has failed to buy a single
- U.S. supercomputer.
- </p>
- <p> The bright spot for the U.S. is that several companies,
- large and small, hope to enter the field. Among the contenders
- is IBM, which in late 1987 formed a venture with former Cray
- designer Steve Chen to develop a line of advanced
- supercomputers. Allan Weis, a vice president in IBM's Data
- Systems division, asserts, "We're very serious about the
- supercomputer market. The Japanese are formidable competitors,
- but IBM and Cray are very formidable too." They had better be,
- or the supercomputer could go the way of the videocassette
- recorder.
- </p>
-
- </body></article>
- </text>
-
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