On Thursday IBM will announce that Watson, the computing system that 
beat all the humans on “Jeopardy!” two years ago, will be available in a
 form more than twice as powerful via the Internet.        
Companies, academics and individual software developers will be able to 
use it at a small fraction of the previous cost, drawing on IBM’s 
specialists in fields like computational linguistics to build machines 
that can interpret complex data and better interact with humans.        
IBM’s move to make its marquee technology more widely available is the 
latest effort among big technology companies to make the world’s most 
powerful computers as accessible as the Angry Birds video game.        
It is also an indication of how quickly the technology industry is 
changing, from complex systems that cost millions to install to 
pay-as-you-go deals that provide small companies and even individuals 
access to technology that just a few years ago only the largest 
companies could afford.        
“The next generation will look back and see 2013 as a year of monumental
 change,” said Stephen Gold, vice president of the Watson project at 
IBM.        
“This is the start of a shift in the way people interact with computers.”        
IBM is wielding Watson in a fight to control the world of cloud 
computing — huge collections of computer servers connected over the 
Internet — with other big technology companies like Amazon.com, Google 
and Microsoft. It is no coincidence that IBM discussed its Watson news 
the same week Amazon was hosting clients at a conference here to pitch 
its own computing cloud, called Amazon Web Services or A.W.S.        
The competition is still young, but its impact will be significant.        
“Companies, governments and people will struggle to figure out what to 
do with all this,” said Jamie Popkin, an analyst with the research 
company Gartner. “It means there is going to be a new pace and velocity,
 making people rethink when humans make decisions, while machines make 
other decisions.”        
Watson, a project on which IBM spent 14 years, is an artificial learning
 system that digests large volumes of information to find hidden 
meanings. Initial uses — besides  besting humans on game shows — include  examining medical patients
 and records to find an unexpected diagnosis, a bit like the genius 
portrayed in the television show “House.” Other uses include an online 
personal shopper and a virtual health aide that tailors exercises by 
asking questions.        
IBM is opening Watson to more people in part to see what additional businesses might be created.        
Watson is prominent, but similar projects are being run by other 
companies. On Tuesday, a company appearing at the Amazon conference said
 it had run in 18 hours a project on Amazon’s cloud of computer servers 
that would have taken 264 years on a single server.        
The project, related to finding better materials for solar panels, cost 
$33,000, compared with an estimated $68 million to build and run a 
similar computer just a few years ago. Akin more to conventional 
supercomputing than Watson’s question-and-answer cognitive computing, 
the project was the first of several announced at the Amazon conference.
        
“It’s now $90 an hour to rent 10,000 computers,” the equivalent of a 
giant machine that would cost $4.4 million, said Jason Stowe, the chief 
executive of Cycle Computing, the company that did the Amazon 
supercomputing exercise, and whose clients include The Hartford, 
Novartis, and Johnson & Johnson. “Soon smart people will be renting a
 conference room to do some supercomputing.”        
While revenues of Amazon’s cloud business are still small enough that 
the company does not have to disclose them, Amazon officials say Jeff 
Bezos, the company’s chief executive, believes A.W.S. could eventually 
dwarf Amazon’s businesses in books and merchandise, enterprises with $51
 billion in revenue. This year, Gartner calculated that A.W.S. had five 
times the computing power of 14 other cloud computing companies, 
including IBM, combined.        
Since then, IBM has spent an estimated $2 billion to acquire a cloud 
company called SoftLayer and has reconfigured Watson as a cloud product.
 It also hired buses that drove around the A.W.S. conference in Las 
Vegas, sporting ads that said they showed its superiority in cloud 
computing.        
Besides gaining bragging rights and a much bigger customer base, IBM may
 be accelerating the growth of Watson’s power by putting it in the 
cloud. Mr. Gold said that Watson would retain learning from each 
customer interaction, gaining the ability to do things like interacting 
in different languages or identifying human preferences. IBM has taken 
steps to keep these improvements for its own benefit, by retaining 
rights in user agreements that customers are required to sign.        
What is not yet clear is IBM’s plan to make money from taking Watson to 
the computing cloud. The company is experimenting with charging for data
 storage, or selling computing on a metered basis, like water or 
electricity. “There is no question the model will change,” Mr. Gold 
said. “You have to have flexibility to handle the breadth of cases we 
expect to see.”        
It is likely that the competition among advanced computing systems will 
increase, lowering prices and delivering more capabilities to whatever 
use companies make of them.        
This year, Google and a corporation associated with NASA acquired for 
study an experimental computer that appears to make use of quantum 
properties to deliver results sometimes 3,600 times faster than 
traditional supercomputers. The maker of the quantum computer, D-Wave 
Systems of Burnaby, British Columbia, counts Mr. Bezos as an investor. 
courtesy of The Newyork Times 

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