High-end servers post solid growth

Higher performance computing servers appear to be recession-proof

By Jim Carbone -- Purchasing, 2/27/2008 11:30:00 AM

The market for high performance computing (HPC) servers grew 15.5% in 2007 to reach a record $11.6 billion and will grow to $15 billion by 2011, according to International Data Corporation (IDC).

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 at an average annual compounded rate (CAGR) of 18.8%.

An HPC server is used for technical computing such as scientific research or product research and development.

."There was no discernible evidence of the general economic slowdown reflected in 2007 HPC system sales," says Steve Conway, IDC research vice president for HPC. "Several factors likely helped insulate the HPC market including the length of HPC budgeting cycles, the global nature of HPC market, HPC's relatively small presence in the financial sector, and HPC's essential role in government, academic research, and industry.

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.