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HPC server market declined 11.6% in 2009, return to growth expected in 2010: IDC

Factory revenue for the high performance computing (HPC) technical server market declined by 11.6% in 2009 to ...


March 31, 2010  


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Factory revenue for the high performance computing (HPC) technical server market declined by 11.6% in 2009 to $8.6 billion, down from $9.7 billion in 2008, according to the International Data Corporation (IDC) Worldwide High-Performance Technical Server QView.

 

Unit shipments dropped 40% year over year during the recession year. IBM and HP ended the year in a statistical tie with 29.3% and 28.6% of overall factory revenue market share respectively.

 

A bright spot was the “Supercomputers” segment for HPC systems priced at $500,000 and up, which grew by 25% to reach $3.4 billion during the difficult year.

 

Fueled by multiple transactions in the $100 million range, the top bracket in this segment, for HPC systems priced above $3 million, grew even faster, expanding by a whopping 65% to reach $1.0 billion, IDC said.

 

At the other end of the price spectrum, revenue from “Workgroup” HPC systems priced below $100,000 slid 33% to $1.7 billion as buyers delayed or canceled some planned acquisitions in this segment that is characterized by purchases based on shorter sales cycles and more discretionary spending.

 

 “IDC expects the HPC technical server market to begin recovering from the impact of the global economic recession in early-2010, with year-over-year growth projected at 5% to 7%,” said Earl Joseph, program vice president for HPC. “And just as the recession affected HPC market segments unequally, so too will the recovery.”