Matlab is only an interface for pre and post processing and is not required to do the actual simulation. The strategy that we generally employ is to install ISSM on both a local machine (for pre-post processing with matlab) and on the cluster (where only issm.exe is compiled, i.e. with the option --with-modules=no). The matlab interface can then "ship" the binary input file to the cluster and fetch the output file once the run is completed (http://issm.jpl.nasa.gov/documentation/parallel/)