System News
Buying and Selling Processing Power
Sun, Archipelago Collaborating on Online Compute Exchange
February 7, 2005,
Volume 84, Issue 2

...as the demand for computing power increases, we see great potential in building an exchange for trading CPU usage cycles.

-- Steve Rubinow
 

Sun and Archipelago Holdings Inc. plan to build the world's first online compute exchange and introduce a new electronic trading environment that will allow customers to bid on CPU usage cycles. This new project will be based on the new Sun Grid and Archipelago's electronic matching technology.

"We're excited about partnering with Sun and developing this opportunity," said Steve Rubinow, CTO of the Archipelago Exchange, which operates under Archipelago Holdings, Inc.

Noted as the first open all-electronic stock market in the United States, Archipelago Exchange trades Nasdaq-listed equity securities and exchange listed equity securities, including those traded on the New York Stock Exchange, American Stock Exchange and Pacific Exchange. Archipelago Exchange offers corporate issuers and investors the advantages of meeting directly, without intermediaries, within a fully electronic and totally transparent environment. The Securities and Exchange Commission approved Archipelago Exchange in October 2001 and it began trading operations in March 2002.

Sun and Archipelago are designing this online compute exchange to allow corporations to dynamically bid for open compute cycles, offering customers the flexibility in planning their purchase and use of compute power. This new electronic trading environment will offer companies the ability to buy or sell processing power and access an unlimited number of CPUs on an as-needed basis.

"With Sun Grid, and Archipelago's matching technology, we expect companies will be able to access an unlimited number of CPUs as they need them - and have access to technology that is reliable, simple to use, powerful, and sophisticated - at a single point of contact," said Robert Youngjohns, executive vice president of Strategic Development and Sun Financing.

Sun expects the exchange to open by the middle of the year and would like to have the market set the price, Youngjohns said. Part of the long-term goal is to establish this service as a commodity, and Sun believes that allowing corporations to bid for the computing capacity on an open market will do just that.

"Maybe people will be trading in this commodity," Youngjohns offered. "Maybe they'll think it's a good idea to corner the market."

"We believe the technological underpinnings of the Archipelago Exchange could be customized to trade nearly anything," commented Rubinow, "and as the demand for computing power increases, we see great potential in building an exchange for trading CPU usage cycles." "

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