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Taking the Lead in HPC

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Taking the Lead in HPC Taking the Lead in HPC Cray X1 Cray XD1 Cray Update SuperComputing 2004 Safe Harbor Statement The statements set forth in this presentation include forward-looking statements that involve risk and uncertainties. The Company wished to caution that a number of factors could cause actual results to differ materially from those in the forward-looking statements. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are discussed in the Company’s filings with the Securities and Exchange Commission. SuperComputing 2004 Copyright Cray Inc. 2 Agenda • Introduction & Overview – Jim Rottsolk • Sales Strategy – Peter Ungaro • Purpose Built Systems - Ly Pham • Future Directions – Burton Smith • Closing Comments – Jim Rottsolk A Long and Proud History NASDAQ: CRAY Headquarters: Seattle, WA Marketplace: High Performance Computing Presence: Systems in over 30 countries Employees: Over 800 BuildingBuilding Systems Systems Engineered Engineered for for Performance Performance Seymour Cray Founded Cray Research 1972 The Father of Supercomputing Cray T3E System (1996) Cray X1 Cray-1 System (1976) Cray-X-MP System (1982) Cray Y-MP System (1988) World’s Most Successful MPP 8 of top 10 Fastest First Supercomputer First Multiprocessor Supercomputer First GFLOP Computer First TFLOP Computer Computer in the World SuperComputing 2004 Copyright Cray Inc. 4 2002 to 2003 – Successful Introduction of X1 Market Share growth exceeded all expectations • 2001 Market:2001 $800M • 2002 Market: about $1B 4% IBM 8% • 2003 Market: Compaq $770M NEC Cray SGI 20% Other Source: IDC, 2003 Capability Market Census SuperComputing 2004 Copyright Cray Inc. 5 2004: Transition & Restructuring • One product company to complete HPC portfolio Cray XD1 Cray XT3 Cray X1E • Disappointing near-term financial results • Drop-off in X1 business - particularly government • Push-out of new product introductions – X1E and XT3 • Third quarter restructuring • 2004 full-year revenue outlook: $155MM - $165MM • Expect return to profitability in early 2005 SuperComputing 2004 Copyright Cray Inc. 6 2005 Outlook • Growth Year as HPC Leadership Company • Three highly anticipated new products in full-swing • Significant top and bottom-line growth opportunity • Positive EPS affect via leveraged business model & recent restructuring • Continued product innovation focused on high performance computing Cray X1E Cray XT3 Cray XD1 Upgrade to Cray X1 Largest x86 system in the world Scales to over 512 processors Double performance & density Based on contract with Sandia Supercomputer from under $100K First shipment end of 2004 First shipment Q4 2004 General Availability Oct. 2004 SuperComputing 2004 Copyright Cray Inc. 7 Market Opportunity $7,000 $6,000 $5,000 $4,000 5X Addressable Market Cray XD1 $3,000 Cray XT3 Cray X1 $2,000 $1,000 $0 SuperComputing 2004 Copyright Cray Inc. 8 Taking Success Taking Success Formula to the 2002 2003 2004 2005 2006 2007 Formula to the Broader HPC ` Broader HPC Market. Departmental (7.4%)Market. Divisional (5.3%) Enterprise (8.2%) Capability (2.4%) (CAGR) Source: IDC 2003 Agenda • Introduction & Overview – Jim Rottsolk • Sales Strategy – Peter Ungaro • Purpose Built Systems - Ly Pham • Future Directions – Burton Smith • Closing Comments – Jim Rottsolk Sales & Marketing 2004 – 2005 Peter Ungaro Senior Vice President Sales, Marketing and Services Diverging Market Approaches Application Efficiency Application Scale Application Performance System Manageability Purpose-built Clusters HPC Industry Moore’s Law Speed SuperComputing 2004 Copyright Cray Inc.(FLOPS) 11 Entering 2004 Cray X1 • New wins – KMA - BringingBringing purpose-builtpurpose-built HPCHPC Oak Ridge solutionssolutions toto HighHigh EndEnd HPCHPC • Upgrades from Cray X1 to X1E in 2005. • Fastest system on HPC Challenge SuperComputing 2004 Copyright Cray Inc. 12 Comprehensive Cray Portfolio Cray X1 Cray XT3 Cray XD1 • General Availability Oct 4 • Shipped first installment • Customers in every major • New wins – KMA - of Red Storm to Sandia geography Oak Ridge • Sales to Oak Ridge • Lowest latency interconnect • Upgrades from Cray National Labs, Pittsburgh in the industry. X1 to X1E in 2005. Supercomputing Center • Demonstrated performance • Fastest system on plus other, undisclosed advantage in CAE, HPC Challenge customers. computational chemistry, • Winner of 5 HPCWire weather & climate Readers Choice awards modeling, reconfigurable computing CustomersCustomers acrossacross thethe boardboard turningturning toto CrayCray forfor Purpose-builtPurpose-built HPCHPC solutionssolutions SuperComputing 2004 Copyright Cray Inc. 13 Comprehensive Cray Portfolio Cray X1 Cray XT3 Cray XD1 Vector • 1 to 50+Vector TFLOPS •MPPMPP1 to 50+ ComputeCompute TFLOPS •Entry/MidEntry/Mid58 GFLOPS Range–Range 2.5+ •Processors$3 M+ for • 256 – 10,000+ TFLOPS Processors for SystemSystem forfor SystemSystem Uncompromised• Vectorized apps processors • 12 – 512+ processors Uncompromised LargeLarge-Scale-Scale OptimizedOptimized forfor • CraySustained • $1 M+ • $50 K+ Sustained SustainedSustained SustainedSustained MSP/UNICOS/mpPerformance • Opteron/Linux/ • AMD Opteron/Linux Performance PerformanceCatamountPerformance PerformancePerformance AddressingAddressing thethe highhigh bandwidthbandwidth needsneeds ofof thethe entireentire HPCHPC marketmarket SuperComputing 2004 Copyright Cray Inc. 14 Comprehensive Cray Portfolio Cray X1 Cray XT3 Cray XD1 • 1 to 50+ TFLOPS • 1 to 50+ TFLOPS • 58 GFLOPS – 2.5+ • $3 M+ • 256 – 10,000+ TFLOPS • Vectorized apps processors • 12 – 512+ processors • Cray MSP with • $1 M+ • $50 K+ UNICOS/mp • AMD Opteron with • AMD Opteron with UNICOS/lc Linux ComplementaryComplementary solutionssolutions forfor broadbroad HPCHPC marketmarket requirementsrequirements SuperComputing 2004 Copyright Cray Inc. 15 Leadership Class Computing • Cray-ORNL Selected by DOE for National Leadership Computing Facility (NLCF) • Goal: Build the most powerful supercomputer in the world • 250-teraflop capability by 2007 • 50-100 TF sustained performance on challenging scientific applications • Roadmap: • 512p MSP X1 • 20T X1E • 20T XT3 • 100T Rainier • Focused on capability computing • Available across government, academia, and industry • Including biology, climate, fusion, materials, nanotech, chemistry • Open scientific research SuperComputing 2004 Copyright Cray Inc. 16 Shipped first Red Storm System Installment • 41.5TF peak performance • 140 cabinets • 11,648 AMD Opteron™ processors • 10 TB DDR memory • 240 TB of disk storage • Approximately 3,000 ft² "We"We expectexpect toto getget substantiallysubstantially moremore realreal workwork done,done, atat aa lowerlower overalloverall cost,cost, onon aa highlyhighly balancedbalanced systemsystem likelike RedRed StormStorm thanthan onon aa large-scalelarge-scale cluster.“cluster.“ Bill Bill Camp,Camp, SandiaSandia DirectorDirector ofof Computers,Computers, Computation,Computation, InformationInformation andand MathematicsMathematics SuperComputing 2004 Copyright Cray Inc. 17 Pittsburgh Supercomputer Center Environmental sciences: CAE: blood flow Global climate modeling modeling Environmental sciences: Earthquake ground Life sciences: vibration protein simulation 1010 TFLOPSTFLOPS CrayCray XT3XT3 SystemSystem 2,0002,000 AMDAMD OpteronOpteron ProcessorsProcessors SuperComputing 2004 Copyright Cray Inc. 18 US Forest Service selects Cray XD1 • Cray XD1 supercomputer will help US Forest Service predict behavior of forest fires • Application: WRF-Chem • Requirement: • 48 hour forecast across the entire US at 12 km resolution with two hours of run time. • Selection criteria • Price/performance of test case • Cost of future expansion • Provision for and cost of scheduled maintenance • Benchmark result: XD1 will complete US Forest Service WRF-chem forecast in about 1 hour 6 minutes on 24 XD1 processors WinningWinning performanceperformance putsputs CrayCray XD1XD1 inin USUS ForestForest ServiceService FireFire SciencesSciences LabLab SuperComputing 2004 Copyright Cray Inc. 19 Researchers exploiting FPGAs • Ohio Supercomputing Center • Establishing Reconfigurable Computing center of expertise • Installed Cray XD1 supercomputer in August • Technical Symposium on Reconfigurable Computing with FPGAs, October 4-5, 2004, Springfield, Ohio • PNNL and other leading research centers selected Cray XD1 for FPGA • “easiest to use FPGA system we’ve seen” AdvancingAdvancing reconfigurablereconfigurable computingcomputing throughthrough openopen sourcesource developmentdevelopment SuperComputing 2004 Copyright Cray Inc. 20 Building the Infrastructure: People, process, partnerships Defense & Security Systems Direct Channel Integrators Sales Partners Worldwide Worldwide Scientific Petroleum Research Cray Customers Capability Life Earth Sciences Sciences Manufacturing (CAE) Software Research Vendors Department Partners (ISVs) SuperComputing 2004 Copyright Cray Inc. 21 Agenda • Introduction & Overview – Jim Rottsolk • Sales Strategy – Peter Ungaro • Purpose Built Systems - Ly Pham • Future Directions - Burton Smith • Closing Comments – Jim Rottsolk Supercomputers: Systems purpose-built for the demands of HPC Ly Pham Senior Vice President Operations A Brief Bio Ly Pham SuperComputing 2004 Copyright Cray Inc. 24 Our Customers’ Problems Life Sciences Manufacturing Government Drug discovery Modeling new designs Predicting weather HPC Computing Challenge Oil & Gas Scientific Research Scale Performance Manageability Technology Limitations Exploring the Earth
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