Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

Wall Street

Bundling Hardware and Software to Tackle Big Compute Problems

The New York Times highlights a big trend in data center computing: the move to bundled solutions rather than the acquisition of individual building blocks and then assembly of solutions by corporations and governments. In the February 8th 2010 article entitled Bundling Hardware and Software to Do Big Jobs, reporter Steve Lohr highlights how "Suppliers are offering customers assembled bundles of hardware and software to make it easier and less expensive for customers to cope with the Internet-era surge in data."

However, the real challenge is not just selling the software and hardware together. It is getting these large compute problems broken down so that subtasks can be processed simultaneously – a concept known as parallel computing – and hence available resources can more effectively reach at least a partial solution. As Kunle Olukotun, a computer scientist at Stanford says, "The huge challenge is to take all this data and generate useful knowledge from it. It is an enormous opportunity in science and business, but it also presents a massive computing problem."

Toomre Capital Markets LLC ("TCM") believes that the capital markets divisions of the financial world have been on the leading edge of this push to transform (on a real-time basis) data first into information and then into knowledge, simply because of the massive profits made in that sector. Wall Street has been able to throw tremendous resources at its data and compute problems. Note the many scientific and engineering graduate types who have left academia for the lure of Wall Street and high pay.

Ut Oh… Barclay's Walks Away from Potential Lehman Brothers Acquisition

According to both Bloomberg and the BBC, Barclay's has walked away from its potential acquisition of the "good bank" portion of Lehman Brothers. This leaves the reluctant Bank of America as the only apparent acquirer of that "valuable" asset. As has been the case for the past three days, the key stumbling block appears to be credit / financial support needed to ring fence the approximately $85 billion in "bad" real estate assets at the heart of the Lehman Brothers crisis.

The Federal government is the deep pocket that all of the major financial players want to come to the table. However, Treasury Paulson appears to be sticking to his statement that there will be no Federal funds available for a Lehman Brothers rescue. Prepare for a really rough market in the days to come!!