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GRIDS CONTINUE MARCH INTO COMMERCIAL SECTOR

RBC Dominion Securities Inc, a unit of Royal Bank of Canada, has recently taken advantage of a Grid of several dozen computers, and a risk-analysis calculation that used to take five days now takes only four hours.

The idea behind Grid computing is that groups of computers used mainly for other purposes are put to work together in their spare time. Many computers use only 10 to 20 percent of their capacity, but Grids can get them working 90 percent of the time.

Grids, which are popular in government, academia and research, are now making their into the business sector. Many large companies have complex computing problems to solve, and Grids can help them to do so.

Currently, the oil and gas industry is using Grids for work that helps exploration companies understand the geology of an area, identify promising drilling locations and estimate the likely size of deposits.

Manufacturers, particularly auto makers and aerospace companies, also are using Grids for design work and simulating crash tests.

In the financial sector, Grids help with the complex calculations involved in areas such as derivatives trading. Royal Bank of Canada has set up several computing Grids of about 100 computers in its capital markets and insurance units.

Grids also are being used by the compter industry, to whom their potential is no secret. IBM uses a Grid to stress-test software before it is released.

One thing most companies using Grid computing today have one thing in common is that they are large. To build a worthwhile Grid, there must be a lot of computers. And the problems Grids solve best are mainly problems big companies face.

The minimum cost of a Grid would be about $30,000, although the cost can go up depending on its size and the vendor.

The approach that Platform, United Devices and other Grid-technology companies are taking -- selling large corporations the tools to create their own computing Grids -- is only one way of making money from Grids.

Using United Devices' software, computer maker and seller Gateway Inc has linked about 6,000 personal computers in its U.S. showrooms to offer a service it calls Gateway Processing on Demand. Gateway charges 15 cents per gigahertz hour of processing time.

One customer, the American Diabetes Association, uses the Grid for a system that can simulate the effect of different treatments on diabetes patients.

Grid computing could also play a role in IBM's vision of delivering computing power as a utility -- companies could purchase computing horsepower as they need it from a supplier that actually owns and runs the computers.

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