although many are connected to outside commercial and private networks. Companies we contacted use high-speed networks for a variety of reasons. In some cases, these networks are used for individual applications that require high transmission speeds, such as interactive videoconferencing. Most companies also used these networks as a more cost-effective way of transmitting large volumes of aggregated traffic from lowerspeed applications. These applications include voice communication, remote computer access, and electronic mail. Landmark Graphics Corporation, a company that develops seismic data processing software for oil exploration, for example, uses an extensive T1 network to support a variety of applications. This network supports up to four voice lines (at 64,000 bits per second each), while providing electronic mail access to hundreds of network users. This network also allows users across the country to work simultaneously on the development of the same software by accessing and sharing files via high performance workstations, and to routinely transfer voluminous files to backup the file system. A Landmark representative said that network use has provided more coordinated and consistent control of product development among the company's different offices, and ultimately, a shortened product development life-cycle. The Amoco Corporation uses a high-speed network to transmit very large (100 million bit to 1 billion bit) files between its foreign and domestic sites. The files contain large volumes of data such as images of sections of the earth, which measure about 400 square miles wide by 3 miles deep. These data are critical to improving Amoco's ability to locate oil reservoirs. Because of the volume of the data, Amoco representatives said it would be impossible to transmit these files to each work site without high-speed networks. If they did not have the networks, the data would have to be duplicated at each site, resulting in higher costs. Moreover, according to an Amoco representative, access to the supercomputer via the high-speed network enabled them to make a major oil discovery-the details of which are proprietary. Within the automobile industry, a General Motors (GM) Corporation representative reported that high-speed networks primarily benefit them by reducing costs and increasing productivity. For example, the network permits resource sharing, reducing duplicate hardware and software purchases. One group reported saving $90,000 by using university software over the network, rather than purchasing it. Another group reported that it did not have to buy a parallel supercomputer because it accessed one at a university via the network. In addition, a corporate networking group projected a $2.3 million cost avoidance for 1991 because the use of a high-speed network enabled them to make large data and graphics files more readily available to remote sites. We discussed the information in this report with industry representatives and experts, and incorporated their comments where appropriate. Our work was performed between October 1990 and May 1991. As agreed with your office, unless you publicly announce the contents of this report earlier, we plan no further distribution until 30 days from the date of this letter. We will then send copies to interested congressional committees and others upon request. Please contact me at (202) 275-3195 if you have any questions concerning this report. The major contributors to this report are listed in appendix VIII. Jack L. Brock, Jr. Director Government Information and Financial Management Objectives, Scope, and Methodology At the request of the Senate Subcommittee on Science, Technology, and Space, the Senate Committee on Commerce, Science, and Transportation; the House Subcommittee on Technology and Competitiveness; and the House Committee on Science, Space, and Technology; we reviewed various industries' use of supercomputers and high-speed networks. The purpose of our review was to (1) illustrate how the automobile, aerospace, petroleum, and chemical and pharmaceutical industries are using supercomputers to improve products, reduce costs, save time, or provide other benefits; (2) describe barriers that inhibit the increased use of supercomputers; and (3) provide examples of how certain industries use high-speed networks and their associated benefits. To illustrate how industries are using and benefitting from supercomputers and identify barriers to their increased use, we interviewed managers, scientists, and engineers from the 24 companies listed in appendix VI. We selected these companies on the basis of recommendations from various experts knowledgeable about industrial supercomputer use. Most of the companies we selected are Fortune 500 companies, largely because of the resources required to purchase, maintain, and use supercomputers. We also interviewed and obtained background information on supercom- To assess how industries use high-speed computer networks, we collected information from companies in various industries and procured |