IDC Estimates HPC Market Grew 23 Percent In 2005

By Nicole Hemsoth

March 3, 2006

IDC's preliminary analysis indicates the high-performance and technical computing (HPTC) market grew about 23 percent in 2005 to reach a record $9.1 billion in revenue. This is the third consecutive year of 20 percent-plus growth in this market. IDC's analysis is based on actual revenue for the first three quarters of 2005 and preliminary revenue estimates for the fourth quarter.

The 2005 preliminary results revealed several significant market trends:

(1) The technical server market grew by 50 percent for the two-year period 2002-2004 and grew by 33 percent from 2003 to 2004 alone.

(2) Market growth in 2005 was driven by capacity computing segments, which include systems with average selling prices from less than $50,000 to $1 million. The high-end capability and enterprise segments showed slight declines.

(3) Cluster market share continued to show explosive growth and represented close to 50 percent of the HPTC market by the third quarter of 2005.

“HPTC systems vendors and their partners should consider their 2005 progress in light of the overall market growth, and they should continue to evaluate what role clustering will play in their current and future solutions,” according to Dr. Earl Joseph, IDC's research vice president for High Performance Systems.

Situation Overview

IDC said the HPTC technical server market continues to see strong growth as scientists and engineers continue to expand their requirements for technical servers, especially standards-based clustered servers. Growth is driven by both purchases by traditional user sites and by new users able to make use if this technology as improvements in both absolute performance and price/performance bring the new capabilities within their reach.

According to Dr. Chris Willard, IDC research vice president for High Performance Systems, “Although two quarters of data do not make a trend, the resumption of strong year-over-year growth rates in Q2 and Q3 of 2005, combined with expectations for continued strength in Q4, drive our assumption for continued year-over-year revenue increases. We see the last several quarters of market data as pointing to a strong underlying growth pattern even if it natural market variability favors individual quarters,” said Willard. “Short-term drivers may include such economic/geo-political factors as strengthening economies, world demand for petroleum, increased competitive requirements for product design, and increasing requirements in national security segments. At a more basic level, we believe that computational tools are continually growing in importance as vehicles for scientific discovery and engineering design.”

“Cluster revenue through the first three quarters of 2005 exceeded the total for the previous full year. Year-over-year quarterly growth for clusters has been in the high 60 percent to low 90 percent range since the first quarter of 2004. The third quarter of 2005 saw the lowest year-over-year growth rate since Q302: 'only' 67.3 percent. IDC believes that technical users are looking to clusters as the underlying technology for acquiring and managing their base computational resources. Although non-clustered solutions are still expected to account for about half the market in 2005, cluster-based systems clearly are driving growth and are expected to dominate the market within the next few years,” according to Willard.

The capability segment is expected to capture just under $900 million in 2005, and like the enterprise segment it is projected to show a slight decline for the full year. The lower-priced capacity segments continued to generate all the growth. The capacity segments include the divisional segment (systems priced $250,000 to $1 million servers), the departmental segment (systems priced $50,000 to $250,000), and the workgroup segment (servers under $50,000).

Essential Guidance

IDC urges vendors of HPTC systems and solutions to consider their own results for calendar year 2005 in the context of overall market growth. The growth rate in 2005 exceeds that which could still be attributed to “catch-up” or “bounce-back” from the technical recession years in 2001 and 2002, and reflects a real increase in demand for HPTC solutions. IDC believes that the growth has been fueled by lower entry price points for HPTC systems with significant levels of performance. This has both broadened the user base and increased usage within existing accounts. To capitalize on this growth, vendors must ensure that their product lines keep up with the price/performance expectations of the user base.

More critical to vendors, however, is the notion of maintaining differentiation in a market that is increasingly trending toward commoditization. Increased revenues do not always result in increased profitability, and IDC expects there to be ongoing price pressure in the market, especially with younger entrants in the clustering space now gaining a firm toehold.

Although IDC expects the HPTC market will remain strong, double-digit growth rates will not likely continue over the long term, and as growth slackens, competition over existing installations will increase, further stressing the price/performance competition.

Vendors should focus on two points. First, they must strive to differentiate their products in order to capture added value in the sale. This differentiation should relate directly to end-user productivity whenever possible, and vendors should particularly be on the lookout for new technologies that will enhance user capabilities. Second, vendors must strive to lower their cost structures internally, which would provide extraordinary competitive advantage.

HPTC users should expect their options to increase in terms of the number of vendors offering solutions; however, they must consider whether they are interested only in driving down price. Many vendors will offer optimizations at premiums, and when feasible, users should strive to adopt technologies that will not only improve their own productivity but also advance the state of the industry.

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Hyperion: AI-driven HPC Industry Continues to Push Growth Projections

November 21, 2019

Three major forces – AI, cloud and exascale – are combining to raise the HPC industry to heights exceeding expectations. According to market study results released this week by Hyperion Research at SC19 in Denver, Read more…

By Doug Black

At SC19: Bespoke Supercomputing for Climate and Weather

November 20, 2019

Weather and climate applications are some of the most important uses of HPC – a good model can save lives, as well as billions of dollars. But many weather and climate models struggle to run efficiently in their HPC en Read more…

By Oliver Peckham

Microsoft, Nvidia Launch Cloud HPC Service

November 20, 2019

Nvidia and Microsoft have joined forces to offer a cloud HPC capability based on the GPU vendor’s V100 Tensor Core chips linked via an InfiniBand network scaling up to 800 graphics processors. The partners announced Read more…

By George Leopold

Hazra Retiring from Intel Data Center Group, Successor Not Known

November 20, 2019

Rajeeb Hazra, corporate VP of Intel’s Data Center Group and GM for the Enterprise and Government Group, is retiring after more than 24 years at the company. At this writing, his successor is unknown. An earlier story on... Read more…

By Doug Black

Jensen Huang’s SC19 – Fast Cars, a Strong Arm, and Aiming for the Cloud(s)

November 20, 2019

We’ve come to expect Nvidia CEO Jensen Huang’s annual SC keynote to contain stunning graphics and lively bravado (with plenty of examples) in support of GPU-accelerated computing. In recent years, AI has joined the s Read more…

By John Russell

AWS Solution Channel

Making High Performance Computing Affordable and Accessible for Small and Medium Businesses with HPC on AWS

High performance computing (HPC) brings a powerful set of tools to a broad range of industries, helping to drive innovation and boost revenue in finance, genomics, oil and gas extraction, and other fields. Read more…

IBM Accelerated Insights

Data Management – The Key to a Successful AI Project

 

Five characteristics of an awesome AI data infrastructure

[Attend the IBM LSF & HPC User Group Meeting at SC19 in Denver on November 19!]

AI is powered by data

While neural networks seem to get all the glory, data is the unsung hero of AI projects – data lies at the heart of everything from model training to tuning to selection to validation. Read more…

SC19 Student Cluster Competition: Know Your Teams

November 19, 2019

I’m typing this live from Denver, the location of the 2019 Student Cluster Competition… and, oh yeah, the annual SC conference too. The attendance this year should be north of 13,000 people, with the majority attende Read more…

By Dan Olds

Hyperion: AI-driven HPC Industry Continues to Push Growth Projections

November 21, 2019

Three major forces – AI, cloud and exascale – are combining to raise the HPC industry to heights exceeding expectations. According to market study results r Read more…

By Doug Black

At SC19: Bespoke Supercomputing for Climate and Weather

November 20, 2019

Weather and climate applications are some of the most important uses of HPC – a good model can save lives, as well as billions of dollars. But many weather an Read more…

By Oliver Peckham

Hazra Retiring from Intel Data Center Group, Successor Not Known

November 20, 2019

Rajeeb Hazra, corporate VP of Intel’s Data Center Group and GM for the Enterprise and Government Group, is retiring after more than 24 years at the company. At this writing, his successor is unknown. An earlier story on... Read more…

By Doug Black

Jensen Huang’s SC19 – Fast Cars, a Strong Arm, and Aiming for the Cloud(s)

November 20, 2019

We’ve come to expect Nvidia CEO Jensen Huang’s annual SC keynote to contain stunning graphics and lively bravado (with plenty of examples) in support of GPU Read more…

By John Russell

Top500: US Maintains Performance Lead; Arm Tops Green500

November 18, 2019

The 54th Top500, revealed today at SC19, is a familiar list: the U.S. Summit (ORNL) and Sierra (LLNL) machines, offering 148.6 and 94.6 petaflops respectively, Read more…

By Tiffany Trader

ScaleMatrix and Nvidia Launch ‘Deploy Anywhere’ DGX HPC and AI in a Controlled Enclosure

November 18, 2019

HPC and AI in a phone booth: ScaleMatrix and Nvidia announced today at the SC19 conference in Denver a joint offering that puts up to 13 petaflops of Nvidia DGX Read more…

By Doug Black

Intel Debuts New GPU – Ponte Vecchio – and Outlines Aspirations for oneAPI

November 17, 2019

Intel today revealed a few more details about its forthcoming Xe line of GPUs – the top SKU is named Ponte Vecchio and will be used in Aurora, the first plann Read more…

By John Russell

SC19: Welcome to Denver

November 17, 2019

A significant swath of the HPC community has come to Denver for SC19, which began today (Sunday) with a rich technical program. As is customary, the ribbon cutt Read more…

By Tiffany Trader

Supercomputer-Powered AI Tackles a Key Fusion Energy Challenge

August 7, 2019

Fusion energy is the Holy Grail of the energy world: low-radioactivity, low-waste, zero-carbon, high-output nuclear power that can run on hydrogen or lithium. T Read more…

By Oliver Peckham

Using AI to Solve One of the Most Prevailing Problems in CFD

October 17, 2019

How can artificial intelligence (AI) and high-performance computing (HPC) solve mesh generation, one of the most commonly referenced problems in computational engineering? A new study has set out to answer this question and create an industry-first AI-mesh application... Read more…

By James Sharpe

Cray Wins NNSA-Livermore ‘El Capitan’ Exascale Contract

August 13, 2019

Cray has won the bid to build the first exascale supercomputer for the National Nuclear Security Administration (NNSA) and Lawrence Livermore National Laborator Read more…

By Tiffany Trader

DARPA Looks to Propel Parallelism

September 4, 2019

As Moore’s law runs out of steam, new programming approaches are being pursued with the goal of greater hardware performance with less coding. The Defense Advanced Projects Research Agency is launching a new programming effort aimed at leveraging the benefits of massive distributed parallelism with less sweat. Read more…

By George Leopold

AMD Launches Epyc Rome, First 7nm CPU

August 8, 2019

From a gala event at the Palace of Fine Arts in San Francisco yesterday (Aug. 7), AMD launched its second-generation Epyc Rome x86 chips, based on its 7nm proce Read more…

By Tiffany Trader

D-Wave’s Path to 5000 Qubits; Google’s Quantum Supremacy Claim

September 24, 2019

On the heels of IBM’s quantum news last week come two more quantum items. D-Wave Systems today announced the name of its forthcoming 5000-qubit system, Advantage (yes the name choice isn’t serendipity), at its user conference being held this week in Newport, RI. Read more…

By John Russell

Ayar Labs to Demo Photonics Chiplet in FPGA Package at Hot Chips

August 19, 2019

Silicon startup Ayar Labs continues to gain momentum with its DARPA-backed optical chiplet technology that puts advanced electronics and optics on the same chip Read more…

By Tiffany Trader

Crystal Ball Gazing: IBM’s Vision for the Future of Computing

October 14, 2019

Dario Gil, IBM’s relatively new director of research, painted a intriguing portrait of the future of computing along with a rough idea of how IBM thinks we’ Read more…

By John Russell

Leading Solution Providers

ISC 2019 Virtual Booth Video Tour

CRAY
CRAY
DDN
DDN
DELL EMC
DELL EMC
GOOGLE
GOOGLE
ONE STOP SYSTEMS
ONE STOP SYSTEMS
PANASAS
PANASAS
VERNE GLOBAL
VERNE GLOBAL

Cray, Fujitsu Both Bringing Fujitsu A64FX-based Supercomputers to Market in 2020

November 12, 2019

The number of top-tier HPC systems makers has shrunk due to a steady march of M&A activity, but there is increased diversity and choice of processing compon Read more…

By Tiffany Trader

Intel Confirms Retreat on Omni-Path

August 1, 2019

Intel Corp.’s plans to make a big splash in the network fabric market for linking HPC and other workloads has apparently belly-flopped. The chipmaker confirmed to us the outlines of an earlier report by the website CRN that it has jettisoned plans for a second-generation version of its Omni-Path interconnect... Read more…

By Staff report

Kubernetes, Containers and HPC

September 19, 2019

Software containers and Kubernetes are important tools for building, deploying, running and managing modern enterprise applications at scale and delivering enterprise software faster and more reliably to the end user — while using resources more efficiently and reducing costs. Read more…

By Daniel Gruber, Burak Yenier and Wolfgang Gentzsch, UberCloud

Dell Ramps Up HPC Testing of AMD Rome Processors

October 21, 2019

Dell Technologies is wading deeper into the AMD-based systems market with a growing evaluation program for the latest Epyc (Rome) microprocessors from AMD. In a Read more…

By John Russell

Rise of NIH’s Biowulf Mirrors the Rise of Computational Biology

July 29, 2019

The story of NIH’s supercomputer Biowulf is fascinating, important, and in many ways representative of the transformation of life sciences and biomedical res Read more…

By John Russell

Xilinx vs. Intel: FPGA Market Leaders Launch Server Accelerator Cards

August 6, 2019

The two FPGA market leaders, Intel and Xilinx, both announced new accelerator cards this week designed to handle specialized, compute-intensive workloads and un Read more…

By Doug Black

Intel Debuts New GPU – Ponte Vecchio – and Outlines Aspirations for oneAPI

November 17, 2019

Intel today revealed a few more details about its forthcoming Xe line of GPUs – the top SKU is named Ponte Vecchio and will be used in Aurora, the first plann Read more…

By John Russell

When Dense Matrix Representations Beat Sparse

September 9, 2019

In our world filled with unintended consequences, it turns out that saving memory space to help deal with GPU limitations, knowing it introduces performance pen Read more…

By James Reinders

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This