High performance computing (HPC) technical server market factory revenue was down by 11.6% to $8.6bn in 2009, compared to $9.7bn in 2008, while unit shipments dropped 40% year over year, according to new data from market research and analytics firm IDC.
Supercomputers segment for HPC systems priced at $500,000 and up was the bright spot, which rose by 25% to reach $3.4bn. Fuelled by multiple transactions in the $100m range, the top bracket in this segment, for HPC systems priced above $3m, grew even faster, expanding by a huge 65% to reach $1bn.
However, revenue from Workgroup HPC systems priced below $100,000 was down by 33% to $1.7bn as buyers delayed or cancelled some planned acquisitions in this segment that is characterised by purchases based on shorter sales cycles and more discretionary spending.
According to IDC, IBM gained the top spot in the segment with revenues of $2.53bn, accounting for 29.3% market share, while HP gained the second spot with revenues $2.47bn representing a market share of 28.6%. These were followed by Dell, Sun and Cray with 15.9%, 4.8% and 2.2%, respectively.
IDC said that Dell, with its primary focus on on the mid-to-low end of the market, was hurt by the major budget contractions in these segments. Its revenues were down by 29.2% to $1.1bn.
IBM also took the lead in the supercomputer segment with 45% market share with its revenue increasing 37% compared to the same period last year, while HP maintained its lead in the sub-$500K market with 33% revenue share, although its revenue in the segment was down 32% over the same period a year ago.
Earl Joseph, program vice president for HPC at IDC, said: IDC expects the HPC technical server market to begin recovering from the impact of the global economic recession in early-2010, with year-over-year growth projected at 5% to 7%.
“And just as the recession affected HPC market segments unequally, so too will the recovery. Many firms have been so battered that they will maintain capex restrictions even in mission-critical areas such as HPC.
