HPC Server Market Jumps 27.6% in 2Q 2018

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Steve Conway and Earl Joseph of Hyperion Research

Hyperion Research reports that worldwide factory revenue for the high-performance computing (HPC) technical server market jumped 27.6% to $3.7 billion in the second quarter of 2018 (2Q18), up from $2.9 billion in the same period of 2017, according to the newly released Hyperion Research Worldwide High-Performance Technical Server QView. Sequentially, second-quarter 2018 HPC server revenue grew 16.7% over the $3.2 billion figure in the first quarter of 2018.

Revenue in the first half of calendar year 2018 rose 23.8% over the 2017 first half, from $5.6 billion to $6.9 billion. Hyperion Research forecasts that revenue for HPC server systems will reach about $12.9 billion in full-year 2018 and will grow to $19.6 billion in 2022.

  • Leading the charge in year-over-year second-quarter growth was the Supercomputers segment for HPC systems sold for $500,000 and up. Revenue in this segment climbed 36.8% to $1.6 billion, compared with $1.2 billion in the prior-year second quarter, and accounted for 43.4% of second-quarter 2018 HPC server revenue.
  • The Divisional segment for systems sold for $250,000 to $499,000 grew by a robust though less dramatic 16.7%, from $537 million in the 2017 second quarter to $627 million in this year’s second quarter.
  • The Departmental segment for systems sold for $100,000 to $249,000 performed strongly in the 2018 second quarter, rising 22.2% to $958 million from the 2017 second-quarter total of $784 million.
  • Similarly, the Workgroup segment for HPC systems sold for under $100,000 grew 25.7%, from $409 million in the 2017 quarter to $514 million in second-quarter 2018.
  • “Second-quarter 2018 HPC server revenue grew robustly year-over-year and sequentially across all price points, helped along by a healthy U.S. and global economy,” said Earl Joseph, CEO of Hyperion Research. “Second-quarter 2018 revenue got a boost from the acceptance of the leadership-class Summit and Sierra pre-exascale supercomputers at the U.S. Department of Energy’s Oak Ridge and Lawrence Livermore labs, respectively.”

According to Steve Conway, Hyperion Research senior vice president of research, “Revenue in the second quarter also benefited from HPC’s crucial role at the forefront of R&D for emerging, economically important artificial intelligence uses such as self-driving vehicles, precision medicine, smart cities and the Internet of Things.”

Vendor Highlights for Second-Quarter 2018:

  • Hewlett Packard Enterprise remained the HPC server system global market leader by capturing 30.7% of worldwide HPC server system revenue.
  • Dell kept its place as the second-ranking vendor with an 18.0% market share.
  • With a strong boost from the Summit and Sierra supercomputer revenue, IBM was the third-place finisher with an 11% share.
  • The largest year-over-year second-quarter percentage gains were by the Summit and Sierra-led IBM (208.8%), Japan’s NEC (76.8%), Penguin Computing (75.2%) and Cray (61.9%).

The Hyperion Research High-Performance Technical Server QView presents the HPC market from various perspectives, including 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 Hyperion Research High-Performance Technical Server QView, contact Bob Sorensen, bsorensen@hyperionres.com.

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