IDC Preliminary Figures Show 15.5% HPC Server Market Growth In 2007

The market for high performance computing (HPC) servers grew 15.5% in 2007 to reach a record $11.6 billion, according to IDC's preliminary full-year figures. Based on actual results for the first three quarters and preliminary fourth quarter results, IDC reported that the HPC server market resumed strong double-digit growth in 2007 after dipping to 9.2% growth in 2006 – the first single-digit increase since 2002. Over the five-year period from 2002 to 2007, the HPC server market has grown an aggregate 134% at an average annual compounded rate (CAGR) of 18.8%. IDC projects that this market will reach $15 billion by 2011. "There was no discernible evidence of the general economic slowdown reflected in 2007 HPC system sales," said Steve Conway, IDC research vice president for HPC. "Several factors likely helped insulate the HPC market: the length of HPC budgeting cycles, the global nature of the HPC market, HPC's relatively small presence in the financial sector, and HPC's essential role in government, academic research, and industry. IDC will closely monitor 2008 quarterly revenue data for any evidence of economic impact." The 2007 $11.6 billion revenue total split out by HPC server price bands as follows. The revenue figures are on a pro forma basis using the new HPC competitive segment categories IDC adopted in consultation with HPC users and vendors, and that formally went into effect on January 1, 2008.
  • The supercomputers segment for HPC servers priced above $500,000 grew 24% year-over-year to reach $3.2 billion in 2007.
  • The divisional segment for HPC servers in the $250,000-$499,999 price range increased 19% over 2006 to $1.7 billion.
  • The departmental segment for HPC systems priced from $100,000 to $249,999 grew 23% from the prior year to reach $4.1 billion.
  • The workgroup segment for sub-$100,000 HPC servers declined slightly (3.3%) to 2007 revenue of $2.7 billion.

In 2007, multi-core parallelism, new acceleration technologies, and new low-end products stimulated end user interest and HPC revenue growth as scientists and engineers continued to expand their use of technical servers, especially standards-based clusters, to drive scientific research and product innovation. Clusters expanded their share of the HPC market to 65% in 2007, according to IDC.