generic types of business


generic types of business models

The campus HPC centres mainly differ in their assumptions about the business environment and the way they capture value, how they finance themselves. There is a spectrum between two extremes: fully subsidised and fully sustained. On this spectrum, there are four prototypical business models of university HPC.
centres: library, shareholder, cost centre, and industry collaboration model.
These four generic models are described by outlining the basic idea, assumptions about the business environment, the financial model, and advantages and disadvantages of each.

1. Library model

The basic logic of this business model is similar to the one of a library: in a library a user can borrow a book from a basic collection without charge (if not yet used) in HPC service provisioning a user can consume an HPC service from a basic set of services without charge (if there is enough capacity).

2. Shareholder model

The basic idea of the shareholder model is that a group of ‘‘shareholders’’ who need computing power pool their money to finance a large common cluster. The HPC centre’s management or an IT portfolio manager conducts the acquisition, maintenance and operation of the system, which, in this model, is mostly a cluster
that can be scaled according to the needs of its ‘‘shareholders’’.

3. Cost centre model

Under this model an HPC centre is fully self-sustained and runs like an industrial cost centre with the need to compensate for all costs, including capital depreciation of the machines, staff costs, power, and energy. A researcher is charged a fee for an HPC service to cover all the costs, and whenever a researcher gets a grant, the money that he has been calculated for the facility goes straight to the HPC business unit.

4. Industry collaboration model

This model is based on a long-term collaboration: downstream, with an original equipment manufacturer (OEM) or upstream, by granting industrial partners access to the HPC infrastructure.


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