HPC Server Market Growth Continues in First Quarter of 2012, IDC Reports

  HPC Server Market Growth Continues in First Quarter of 2012, IDC Reports

Business Wire

FRAMINGHAM, Mass. -- June 15, 2012

Worldwide factory revenue for the high performance computing (HPC) technical
server market increased 3.1% in the first quarter of 2012 (1Q12) to reach $2.4
billion, up from $2.3 billion in the same period of 2011, according to the
newly released International Data Corporation (IDC) Worldwide High-Performance
Technical Server QView.

IDC maintains its previous forecast that for full-year 2012 the HPC technical
server market will expand by about 7.1% over the record-breaking revenues of
$10.3 billion in 2011. 2012 revenues are forecast to reach $11 billion.

Unit shipments of 28,747 in 1Q12 declined by 0.5% compared to the first
quarter of 2011 as average selling prices continued to grow during an ongoing
shift to large system sales.

The brightest spot in the market continues to be the high-end Supercomputers
segment, for HPC systems selling for $500,000 and up. Revenue in this segment
jumped 13.9% over the first quarter of 2011 to reach $976 million. At the
other end of the price spectrum, revenue from Workgroup HPC systems, selling
for below $100,000, fell 4.6% year over year but rose sequentially by 5.1%
from the fourth quarter of 2011.

The high-end Supercomputers segment accounted for 39.9% of worldwide HPC
technical server revenue, while the Divisional segment ($250,000 to $499,000
price band) captured 12.7% of revenue. The Departmental segment ($100,000 to
$249,000 price band) made up 35.3% of revenue, and the Workgroup segment
contributed 12.2%.

"HPC technical servers, especially Supercomputers, have been closely linked
not only to scientific advances but also to industrial innovation and economic
competitiveness. For this reason, nations and regions across the world are
increasing their investments in supercomputing even in today's challenging
economic conditions," said Earl Joseph, program vice president for Technical
Computing at IDC. "We expect the global race for HPC leadership in the
petascale-exascale era to continue heating up during this decade."

IDC expects the HPC technical server market to grow at a healthy 7.3% compound
annual growth rate (CAGR) to reach revenues of $14 billion by 2016.

Vendor Highlights

  * HP and IBM remained in close contention for worldwide market leadership by
    capturing 30.5% and 29.0% of overall revenue share, respectively.
  * Dell maintained its strong third-place position with 16% of global
    revenue.
  * Cray (+475%), Fujitsu (+162%), and SGI (+88%) all made strong
    year-over-year revenue gains in first quarter of 2012, driven by the
    acceptance of large systems. Appro's revenue also advanced nicely (+21%).
    China's Dawning showed continued momentum at a more moderate pace (3%).

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. For more than 48
years, IDC has provided strategic insights to help our 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.

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their respective holders.

Contact:

IDC
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