The San Francisco Chronicle is not exactly the planet’s leading source of technology news and analysis.  So many of you probably haven’t yet seen Deborah Gage’s excellent article today about Dan’l Lewin, Microsoft’s ambassador to Silicon Valley.  Dan’l is among our most important contacts (and favorite people) at Microsoft, and despite his high-visibility role, many people (including many entrepreneurs) still don’t understand the value he can bring to a startup.

In a single sentence containing at least three significant understatements, Ms. Gage writes:

Microsoft still gets criticized sometimes for being slow to the Internet or hard to do business with, but Lewin has won praise over the years for his courtesy, efficiency and ability to connect outsiders to the right people inside Microsoft, which is not an easy task.

Whew.  Let’s parse that.

“Microsoft still gets criticized sometimes for being . . . hard to do business with . . .”  There is no question that doing business with ANY huge company is hard.  Building a close relationship with Microsoft (or any tech giant) is not for the faint of heart.  Microsoft presents some special challenges that I could go on about at length (oh wait, I’ve done that multiple times…), but let’s just stipulate that some of these criticisms are justified while some are not.

“…but Lewin has won praise over the years for his courtesy, efficiency and ability to connect outsiders to the right people inside Microsoft…”   Bingo.  Dan’l Lewin has done more to expose the helpful side of Microsoft to startups, entrepreneurs, and VCs than anyone would have thought possible just a few years ago.  His Emerging Business Team is the API for startups that want hooks into Microsoft.  Digipede has received numerous tangible and intangible benefits from working with the EBT; the group brings the attitude that they can’t wait to help interesting startups, and it’s Dan’l who sets the tone and agenda for that critical group.

“…which is not an easy task.”  No kidding.  I’m back to my API analogy.  If you would rather to try to reverse-engineer the Microsoft org chart from the outside, good luck — but a single call to the EBT can get you to the right person within Microsoft faster than any other method I know.

The Bay Area is teaming with “experts” who would have us believe that Microsoft has become irrelevant.  In my experience, entrepreneurs ignore Microsoft at their peril.  Far better to understand what they’re doing and why than to pretend they aren’t there.  Dan’l and his team are great resources for entrepreneurs who want to understand and work with Microsoft.  So — good job, Ms. Gage, for profiling Microsoft’s local champion of innovation.  Well worth reading.

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I can’t believe I still haven’t had a chance to write about Velocity, Microsoft’s recently announced in-memory cache.  I think  this is just further proof that I have an endless backlog of topics about which I should be writing.

In any case, Derrick Harris of Grid Today has done a great job of connecting the dots for us in his excellent article today.  Read the whole article, because he offers good insight on how important this announcement really is, but here’s his analysis of how it affects Digipede:

Whatever emerges from Velocity also should be good news to Microsoft’s technology partners — in particular Digipede, which has been delivering distributed computing to .NET apps and now might get the add-on technology it needs to compete with the big boys. Digipede has received no shortage of praise from customers and commentators alike about its relatively inexpensive and very user-friendly solution, but one of the drawbacks has been its limitation in terms of what types of jobs the Digipede Network can handle, namely CPU-intensive jobs benefitting from parallel processing. If Microsoft and Digipede can make Velocity and the Digipede Network function as a unit and keep the price down, Digipede could find itself selling to a whole new, real-time-data-loving audience. That this integration will occur is pure speculation on my part, but it seems to make sense on the surface.

I have no comment on specifics at the moment, but let’s just say — Derrick, you nailed it.


Derek Furguson of Bear Stearns (now JPMorgan Chase) has a good article in .NET Developer Journal about how to apply genetic algorithms and grid computing to the problem of market timing in stock trading. I was pleased to see that he chose to implement his algorithms using the Digipede Network.

His article is in two parts, and this first part provides a good overview of the complex problem he’s facing — he confronts issues in financial modeling, data sources, genetic models and grid computing. As a result, Part One does not dig too deeply into coding details. But it’s worth a read — you’ll understand the architectural decisions he’s facing, and how he’s planning to address them. Plus, from what I’ve heard about Part Two (which will be out in June), there’s plenty of detail (and code) coming.

This is the second time in two months that we’ve seen influential financial modelers implement their public examples using the Digipede Network (see also Matt Davey’s recent Dr. Dobb’s article).

This is consistent with what we’re seeing from customers. While there are many grid offerings in the market, there seems to be a growing consensus that if you use .NET, there are significant advantages to working with a grid solution built on .NET. Or conversely, there’s no point trying to fit a square peg into a round hole — i.e., there’s no point trying to graft a .NET application onto a grid built for other technologies when a better option exists.

This is the “application centric” view — grids should follow applications, making it easier for developers to adapt applications to a grid, even if that means limiting the options for running those applications to a particular set of resources (in Digipede’s case, Windows machines running .NET).

The other view is “infrastructure centric” — that OS should not matter, that a grid should allow applications to be deployed across all resources, even if that means restricting the application technologies and development patterns allowed for such deployment.

Digipede has been unapologetically in the “application centric” camp for five years now, but what do others think? Has Derek made a wise choice by trading off ease of development for deployment limited to a single OS? We think so, but let’s hear from you!

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Derrick Harris of GridToday wanted to know more about the Digipede Network Version 2.0.

For those zero of you who don’t read GridToday until I point you there, his recent interview of me is here.

More later from High Performance on Wall Street.

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Dan Ciruli and I will be at HPC on Wall Street at the Roosevelt Hotel in New York City next Monday (September 17).

We’ll be releasing Version 2.0 of the Digipede Network, and meeting with many analysts, press, customers, prospects, partners, and bartenders.  Since some of that could be pretty time consuming, we’ll also be in town September 18-19 for Microsoft meetings and more of the above.

If you’ll be there, let me know and we’ll find a way to meet up.

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I recently met with the folks at Windows in Financial Services — a good source of information about the progress Microsoft and its partners are making in the financial services market. 

They interviewed me about my thoughts on the current market for distributed computing in finance — I ended up talking a lot about the changing economics in this market, especially with respect to the relative costs of computing power and skilled developers.  Let me know how you think it turned out!

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Finance on Windows, a magazine based in the UK, asked me to write an article on grid computing.  I took the opportunity to hammer a few of my favorite themes, mostly based around my own analysis of the economics of distributed computing.  The article is in the May 2007 issue (now being handed out at fine financial events everywhere, or you can subscribe, or you can read it online

This topic is near and dear to my heart, and I’ll have a lot more to say about it (here and elsewhere).  The bottom line?  The economics of distributed computing have changed radically over the past few years.  When high-end hardware costs tens of millions of dollars, the costs of programming are small relative to other considerations.  When high-performance distributed computing systems can now be had for orders of magnitude less — the cost of adapting real-world applications to such systems dominates other considerations. 

 

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Derrick Harris of GridToday wrote a nice piece this morning about Digipede’s recent momentum.  He’s been following us since we launched the Digipede Network almost two years ago, and he hits the highlights in his article today. 

Derrick interviewed me by phone for the story, and I guess I must have let slip that the Digipede Network Version 2.0 will be out this summer.  So watch this space in the coming weeks for more leaks and details on this important release, as we build on the momentum we’ve generated over the last year.

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Digipede announced another customer win today.  III Offshore Advisors, an innovative hedge fund that uses a lot of computing power in their pricing and risk management models, selected the Digipede Network for their grid.  You can read about it on our Web site; GridToday also picked up the story. 

Financial firms are famously competitive, and no niche is more competitive today than the hedge fund market.  While the secret to success of most hedge funds is just that — a secret — most start with a small core team that says:  We can do better.  We know (through math, intuition, research, hard work, or all of the above) how to make a better investment, a better trade, a better judgment than our competitors.  When we show what we can do, our investors will be rich — and so will we.

Many of the investment and trading strategies employed by these firms are developed through cutting-edge mathmatical modeling.  Some of the brightest minds in the world are drawn to this competitive and lucrative market, and regardless of the models employed, they all cry out for — more computing power.  And it’s not just for one or two applications.  In our experience with hedge funds (and we work with quite a few), even a small fund encounters computational bottlenecks in: 

  • Risk management
  • Fixed income pricing
  • Trading analytics (including liquidity depth analysis, inter-portfolio correlation analysis, and more)
  • Pricing of exotic derivatives, and more

Eliminating these bottlenecks can open up new trading opportunities sooner.  If putting in a grid this month lets you start trading in new markets next month — that’s an easy decision.  If putting in a grid this week lets you out-trade your competitor next week — let’s go. 

So how did the Digipede Network become the grid computing software of choice for hedge funds?  I’ll tell you in Part II.

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Robert Anderson, Dan Ciruli and I were invited to spend a morning at Podtech’s headquarters in Palo Alto last month. Robert Scoble interviewed Robert and me about Digipede, then shot a video of Dan doing a demo of our software. Most of it turned out well; trying to show code by aiming a video camera at a laptop may have been a trifle ambitious, but the ideas come across.

What the hell am I doing waving my hands around all the time? Probably had too much caffeine….

Editor’s Choice: highlights from Digipede’s interview and demo

 

Demo of building a grid with Digipede

 

Talking about Digipede’s grid technology

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