Intersect360 Research Adjusts 2020 HPC Market Forecast for COVID-19

March 27, 2020

SUNNYVALE, Calif., March 27, 2020 — Intersect360 Research has released a new report guiding its clients that the market for High Performance Computing (HPC) products and services will fall significantly short of its previous 2020 forecast, due to the global COVID-19 pandemic. The newly-revised forecast predicts the overall worldwide HPC market will be flat to down 12% in 2020.

The report, Worldwide High Performance Computing Market Forecast: Pre-Announce Guidance Related to the Effects of COVID-19, states that Intersect360 Research now expects worldwide HPC market performance to fall short of previously forecast expectations for the current calendar year by 11% to 12%. The report gives a range of guidance based on uncertain factors; the expected decline is the midpoint of a spread from 6% to 17% below prior market expectations.

Intersect360 Research had previously estimated total worldwide market revenue for HPC as $38.7 billion in 2019 and had projected 7% year-over-year growth in 2020. The newly-adjusted forecast wipes out that growth and projects the market will be flat to down 12% instead, with a midpoint expectation of a 6% loss that would bring the total worldwide HPC market size to $36.4 billion by the end of 2020. This would end a streak of ten straight growth years for the HPC market.

“We are still early in the process of learning about the COVID-19 pandemic and what it will truly mean for the world,” said Addison Snell, CEO of Intersect360 Research. “That said, we cannot think everything will stay the same. Our data and experience show there will be an adjustment in the HPC market as a direct result of the spread of the novel coronavirus.”

The report from Intersect360 Research gives a segment-by-segment analysis of the HPC market, broken out by vertical markets, regions, and products and services. According to the report: “This shortfall will not be evenly spread across market segments. There will be certain segments that may perform at or even above our previous forecast. Conversely, some segments will be significantly below the average decline.”

“Some segments of HPC, such as public sector research and pharmaceuticals, are directly engaged in the worldwide fight against COVID-19, and important, incremental investments are buoying these segments,” said Snell. “Other HPC vertical markets, like automotive and aerospace engineering, oil exploration, and entertainment, are already in significant decline.”

Similarly, the report foresees significant differences between product and services categories, as well as minor differences between regions. The three segmentations correspond to a consistent market decline.

According to the report: “As HPC budgets tighten, most organizations prioritize staffing and other existing operational expenditures over new acquisitions and upgrades. In many cases, even when budgets are not cut, the uncertainty causes delays in procurement, which can push spending from one year into the next. At the other extreme, we expect spending on cloud computing for HPC to significantly increase above and beyond the already-high growth rate we had projected.”

The newly-released report draws on end-user data gathered in February and March 2020 as part of an annual HPC budget survey, including specific queries on budget changes related to COVID-19. As part of this report, Intersect360 Research affirms it expects 2019 market performance to remain consistent with its previous forecast.

Intersect360 Research states it plans to release final 2019 HPC market numbers to clients, along with a revised five-year forecast, shortly. “There are times it can be difficult to focus on one’s own small role in a crisis,” said Snell. “In this case, our job is to continue to monitor the health of the HPC industry, while our emotions are focused on the health of our colleagues who comprise it.”

Worldwide High Performance Computing Market Forecast: Pre-Announce Guidance Related to the Effects of COVID-19, as well as the full calendar of Intersect360 Research reports, is available for purchase and download at www.intersect360.com. Inquire with sales@intersect360.com about our full Advisory Service.

About Intersect360 Research

Intersect360 Research is a market intelligence, research, and consulting advisory practice focused on high-performance data center trends, including High Performance Computing (HPC), artificial intelligence (AI) and machine learning, cloud computing, big data, and hyperscale. Intersect360 Research utilizes both user-based and supplier-based research to form a complete perspective of market dynamics, trends, and usage models, including both technical and business applications. The company’s end-user-focused research is inclusive from both a technology perspective and a usage standpoint, allowing Intersect360 Research to provide its clients with total market models that include both traditional and emerging HPC applications.


Source: Intersect360 Research

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!

Royalty-free stock illustration ID: 1675260034

Solving Heterogeneous Programming Challenges with SYCL

December 8, 2021

In the first of a series of guest posts on heterogenous computing, James Reinders, who returned to Intel last year after a short "retirement," considers how SYCL will contribute to a heterogeneous future for C++. Reinde Read more…

Quantinuum Debuts Quantum-based Cryptographic Key Service – Is this Quantum Advantage?

December 7, 2021

Quantinuum – the newly-named company resulting from the merger of Honeywell’s quantum computing division and UK-based Cambridge Quantum – today launched Quantum Origin, a service to deliver “completely unpredicta Read more…

SC21 Was Unlike Any Other — Was That a Good Thing?

December 3, 2021

For a long time, the promised in-person SC21 seemed like an impossible fever dream, the assurances of a prominent physical component persisting across years of canceled conferences, including two virtual ISCs and the virtual SC20. With the advent of the Delta variant, Covid surges in St. Louis and contention over vaccine requirements... Read more…

The Green500’s Crystal Anniversary Sees MN-3 Crystallize Its Winning Streak

December 2, 2021

“This is the 30th Green500,” said Wu Feng, custodian of the Green500 list, at the list’s SC21 birds-of-a-feather session. “You could say 15 years of Green500, which makes it, I guess, the crystal anniversary.” Indeed, HPCwire marked the 15th anniversary of the Green500 – which ranks supercomputers by flops-per-watt, rather than just by flops – earlier this year with... Read more…

AWS Arm-based Graviton3 Instances Now in Preview

December 1, 2021

Three years after unveiling the first generation of its AWS Graviton chip-powered instances in 2018, Amazon Web Services announced that the third generation of the processors – the AWS Graviton3 – will power all-new Amazon Elastic Compute 2 (EC2) C7g instances that are now available in preview. Debuting at the AWS re:Invent 2021... Read more…

AWS Solution Channel

Introducing AWS HPC Connector for NICE EnginFrame

HPC customers regularly tell us about their excitement when they’re starting to use the cloud for the first time. In conversations, we always want to dig a bit deeper to find out how we can improve those initial experiences and deliver on the potential they see. Read more…

Nvidia Dominates Latest MLPerf Results but Competitors Start Speaking Up

December 1, 2021

MLCommons today released its fifth round of MLPerf training benchmark results with Nvidia GPUs again dominating. That said, a few other AI accelerator companies participated and, one of them, Graphcore, even held a separ Read more…

Royalty-free stock illustration ID: 1675260034

Solving Heterogeneous Programming Challenges with SYCL

December 8, 2021

In the first of a series of guest posts on heterogenous computing, James Reinders, who returned to Intel last year after a short "retirement," considers how SYC Read more…

Quantinuum Debuts Quantum-based Cryptographic Key Service – Is this Quantum Advantage?

December 7, 2021

Quantinuum – the newly-named company resulting from the merger of Honeywell’s quantum computing division and UK-based Cambridge Quantum – today launched Q Read more…

SC21 Was Unlike Any Other — Was That a Good Thing?

December 3, 2021

For a long time, the promised in-person SC21 seemed like an impossible fever dream, the assurances of a prominent physical component persisting across years of canceled conferences, including two virtual ISCs and the virtual SC20. With the advent of the Delta variant, Covid surges in St. Louis and contention over vaccine requirements... Read more…

The Green500’s Crystal Anniversary Sees MN-3 Crystallize Its Winning Streak

December 2, 2021

“This is the 30th Green500,” said Wu Feng, custodian of the Green500 list, at the list’s SC21 birds-of-a-feather session. “You could say 15 years of Green500, which makes it, I guess, the crystal anniversary.” Indeed, HPCwire marked the 15th anniversary of the Green500 – which ranks supercomputers by flops-per-watt, rather than just by flops – earlier this year with... Read more…

Nvidia Dominates Latest MLPerf Results but Competitors Start Speaking Up

December 1, 2021

MLCommons today released its fifth round of MLPerf training benchmark results with Nvidia GPUs again dominating. That said, a few other AI accelerator companies Read more…

At SC21, Experts Ask: Can Fast HPC Be Green?

November 30, 2021

HPC is entering a new era: exascale is (somewhat) officially here, but Moore’s law is ending. Power consumption and other sustainability concerns loom over the enormous systems and chips of this new epoch, for both cost and compliance reasons. Reconciling the need to continue the supercomputer scale-up while reducing HPC’s environmental impacts... Read more…

Raja Koduri and Satoshi Matsuoka Discuss the Future of HPC at SC21

November 29, 2021

HPCwire's Managing Editor sits down with Intel's Raja Koduri and Riken's Satoshi Matsuoka in St. Louis for an off-the-cuff conversation about their SC21 experience, what comes after exascale and why they are collaborating. Koduri, senior vice president and general manager of Intel's accelerated computing systems and graphics (AXG) group, leads the team... Read more…

Jack Dongarra on SC21, the Top500 and His Retirement Plans

November 29, 2021

HPCwire's Managing Editor sits down with Jack Dongarra, Top500 co-founder and Distinguished Professor at the University of Tennessee, during SC21 in St. Louis to discuss the 2021 Top500 list, the outlook for global exascale computing, and what exactly is going on in that Viking helmet photo. Read more…

IonQ Is First Quantum Startup to Go Public; Will It be First to Deliver Profits?

November 3, 2021

On October 1 of this year, IonQ became the first pure-play quantum computing start-up to go public. At this writing, the stock (NYSE: IONQ) was around $15 and its market capitalization was roughly $2.89 billion. Co-founder and chief scientist Chris Monroe says it was fun to have a few of the company’s roughly 100 employees travel to New York to ring the opening bell of the New York Stock... Read more…

Enter Dojo: Tesla Reveals Design for Modular Supercomputer & D1 Chip

August 20, 2021

Two months ago, Tesla revealed a massive GPU cluster that it said was “roughly the number five supercomputer in the world,” and which was just a precursor to Tesla’s real supercomputing moonshot: the long-rumored, little-detailed Dojo system. Read more…

Esperanto, Silicon in Hand, Champions the Efficiency of Its 1,092-Core RISC-V Chip

August 27, 2021

Esperanto Technologies made waves last December when it announced ET-SoC-1, a new RISC-V-based chip aimed at machine learning that packed nearly 1,100 cores onto a package small enough to fit six times over on a single PCIe card. Now, Esperanto is back, silicon in-hand and taking aim... Read more…

US Closes in on Exascale: Frontier Installation Is Underway

September 29, 2021

At the Advanced Scientific Computing Advisory Committee (ASCAC) meeting, held by Zoom this week (Sept. 29-30), it was revealed that the Frontier supercomputer is currently being installed at Oak Ridge National Laboratory in Oak Ridge, Tenn. The staff at the Oak Ridge Leadership... Read more…

AMD Launches Milan-X CPU with 3D V-Cache and Multichip Instinct MI200 GPU

November 8, 2021

At a virtual event this morning, AMD CEO Lisa Su unveiled the company’s latest and much-anticipated server products: the new Milan-X CPU, which leverages AMD’s new 3D V-Cache technology; and its new Instinct MI200 GPU, which provides up to 220 compute units across two Infinity Fabric-connected dies, delivering an astounding 47.9 peak double-precision teraflops. “We're in a high-performance computing megacycle, driven by the growing need to deploy additional compute performance... Read more…

Intel Reorgs HPC Group, Creates Two ‘Super Compute’ Groups

October 15, 2021

Following on changes made in June that moved Intel’s HPC unit out of the Data Platform Group and into the newly created Accelerated Computing Systems and Graphics (AXG) business unit, led by Raja Koduri, Intel is making further updates to the HPC group and announcing... Read more…

Killer Instinct: AMD’s Multi-Chip MI200 GPU Readies for a Major Global Debut

October 21, 2021

AMD’s next-generation supercomputer GPU is on its way – and by all appearances, it’s about to make a name for itself. The AMD Radeon Instinct MI200 GPU (a successor to the MI100) will, over the next year, begin to power three massive systems on three continents: the United States’ exascale Frontier system; the European Union’s pre-exascale LUMI system; and Australia’s petascale Setonix system. Read more…

Hot Chips: Here Come the DPUs and IPUs from Arm, Nvidia and Intel

August 25, 2021

The emergence of data processing units (DPU) and infrastructure processing units (IPU) as potentially important pieces in cloud and datacenter architectures was Read more…

Leading Solution Providers

Contributors

D-Wave Embraces Gate-Based Quantum Computing; Charts Path Forward

October 21, 2021

Earlier this month D-Wave Systems, the quantum computing pioneer that has long championed quantum annealing-based quantum computing (and sometimes taken heat fo Read more…

HPE Wins $2B GreenLake HPC-as-a-Service Deal with NSA

September 1, 2021

In the heated, oft-contentious, government IT space, HPE has won a massive $2 billion contract to provide HPC and AI services to the United States’ National Security Agency (NSA). Following on the heels of the now-canceled $10 billion JEDI contract (reissued as JWCC) and a $10 billion... Read more…

The Latest MLPerf Inference Results: Nvidia GPUs Hold Sway but Here Come CPUs and Intel

September 22, 2021

The latest round of MLPerf inference benchmark (v 1.1) results was released today and Nvidia again dominated, sweeping the top spots in the closed (apples-to-ap Read more…

Three Chinese Exascale Systems Detailed at SC21: Two Operational and One Delayed

November 24, 2021

Details about two previously rumored Chinese exascale systems came to light during last week’s SC21 proceedings. Asked about these systems during the Top500 media briefing on Monday, Nov. 15, list author and co-founder Jack Dongarra indicated he was aware of some very impressive results, but withheld comment when asked directly if he had... Read more…

Ahead of ‘Dojo,’ Tesla Reveals Its Massive Precursor Supercomputer

June 22, 2021

In spring 2019, Tesla made cryptic reference to a project called Dojo, a “super-powerful training computer” for video data processing. Then, in summer 2020, Tesla CEO Elon Musk tweeted: “Tesla is developing a [neural network] training computer... Read more…

2021 Gordon Bell Prize Goes to Exascale-Powered Quantum Supremacy Challenge

November 18, 2021

Today at the hybrid virtual/in-person SC21 conference, the organizers announced the winners of the 2021 ACM Gordon Bell Prize: a team of Chinese researchers leveraging the new exascale Sunway system to simulate quantum circuits. The Gordon Bell Prize, which comes with an award of $10,000 courtesy of HPC pioneer Gordon Bell, is awarded annually... Read more…

Quantum Computer Market Headed to $830M in 2024

September 13, 2021

What is one to make of the quantum computing market? Energized (lots of funding) but still chaotic and advancing in unpredictable ways (e.g. competing qubit tec Read more…

IBM Introduces its First Power10-based Server, the Power E1080; Targets Hybrid Cloud

September 8, 2021

IBM today introduced the Power E1080 server, its first system powered by a Power10 IBM microprocessor. The new system reinforces IBM’s emphasis on hybrid cloud markets and the new chip beefs up its inference capabilities. IBM – like other CPU makers – is hoping to make inferencing a core capability... Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire