News Column

HPC Server Market Shrinks -9.6% in the First Quarter of 2014, IDC Reports

June 23, 2014



FRAMINGHAM, Mass.--(BUSINESS WIRE)-- Worldwide factory revenue for the high performance computing (HPC) technical server market decreased -9.6% in the first quarter of 2014 (1Q14) to $2.3 billion, down from $2.5 billion in the same period of 2013, according to the International Data Corporation (IDC) Worldwide High-Performance Technical Server QView. Unit shipments were relatively steady in the quarter, growing 0.4% year over year on shipments of 33,577 units.

Revenues in the high-end Supercomputers segment (HPC systems sold for $500,000 and up) declined to $580 million, down -32.7% year over year. IDC forecasts that the Supercomputers segment will see modest growth through the rest of 2014, but will expand at a healthy compound annual growth rate (CAGR) of 7.2% through 2018.

Following a recovery year in 2013, the lower half of the HPC market showed signs of, continued improvement in the Divisional, Departmental, and Workgroup segments. The Divisional segment (HPC systems priced from $250,000 to $499,000) declined -2.6% year over year, while revenues for Departmental systems (priced $100,000 to $249,000) grew by 0.6% and Workgroup revenues (for systems priced below $100,000) advanced a healthy 11.4% over the same quarter in 2013.

"HPC technical server revenues are expected to grow at a healthy rate because of the crucial role they play in economic competitiveness as well as scientific progress," said Earl Joseph, Program Vice President for Technical Computing at IDC. "As the global race toward exascale computing fuels the high end of the market, more small and medium-sized businesses and research organizations are exploiting HPC servers for advanced simulations and high performance data analysis."

IDC expects the overall HPC technical server market to grow at a healthy 7.4% yearly rate with revenues reaching $14.7 billion by 2018.

Vendor Highlights

  • HP is the leading market vendor with 35% of HPC server market share
  • IBM is the second largest vendor with 23.1% market share
  • Dell maintained its strong third-place position with 17.2% of global revenue.
  • NEC (87.3%), Sugon (14.9%), and Dell (8.5%) all made strong year-over-year revenue gains in 1Q14. NEC's growth was driven by its gains in the Supercomputers segment, while Sugon and Dell experienced growth in the Departmental, Divisional and Workgroup segments.

    The IDC Worldwide High-Performance Technical Server QView presents the HPC market from various perspectives, including by competitive segment, vendor, cluster versus non-cluster, geography, and operating system. It also contains detailed revenue and shipment information by HPC models.

    For more information about the IDC Worldwide High Performance Technical Server QView, contact Chirag Dekate at cdekate@idc.com.

    About IDC

    International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.




    IDC

    Chirag Dekate, 508-395-8391

    cdekate@idc.com

    or

    Earl Joseph, 612-812-5798

    ejoseph@idc.com

    or

    Steve Conway, 612-381-6939

    sconway@idc.com

    or

    Michael Shirer, 508-935-4200

    press@idc.com

    Source: IDC


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