High-performance technical server sales soar worldwide What were the trends for midrange systems, supercomputers, and massively parallel processors that caused the boom?

February  1997

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Boston (02/04/97) -- Worldwide revenue of the high-performance technical computing market grew 43 percent to an estimated US$3 billion for 1996, according to a report today by International Data Corporation (IDC).

The report, "1996 High-Performance Computer Market Review and Outlook," indicates unit growth increased 38 percent over 1995 to 5,831.

"Much of this growth represents a market correction over 1995, when very weak demand occurred in two of the three key segments," Debra Goldfarb, vice president for IDC's Workstations and High-Performance Systems program, said in a statement. "However, we believe the strength shown in all segments in 1996 represents real increases in use and investment in technical computer servers."

IDC divided its analysis of the high-performance computer market into three areas:

• High-performance midrange -- This segment dominates the overall market, with revenue growing 44 percent to nearly $2 billion. Good price-performance of RISC-based systems, compatibility with workstation clients, ease of use and availability of applications continue to help drive this market.

• Supercomputers -- Cray Research Inc., Fujitsu Ltd., and NEC Corp. experienced strong demand for their new product families. Revenues grew 23 percent on a unit shipment increase of 64 percent over 1995. Supply constraints in 1996 should translate into strong sales during 1997.

• Technical massively parallel processors (MPP) -- The technical market for MPP is considered small and erratic. Revenue grew 85 percent despite a 27 percent drop in unit shipments. Cray's T3E and IBM's high-end SP offering dominated the revenue mix.

The research firm found the following trends in the market:

• Industrial research and development requirements have replaced national security requirements as the major technical and financial drivers for the high-performance computing industry.

• The merging of Cray into Silicon Graphics Inc., and Hewlett-Packard Co.'s acquisition of Convex Computer Corp. in late 1995 reinforced a business model focusing on product lines that range from the desktop to supercomputers. This domination by larger companies means that commercial systems/market requirements will play a larger role in the evolution of high-performance technology.

• Massively parallel processing's luster has waned. MPPs are undergoing a technology transition, moving more toward scalable architectures that can support capacity and capability computing. Currently, only a few established companies, such as IBM and SGI/Cray, support classical MPP technology. IDC believes MPPs, and in the near future, high-end scalable architectures, will remain confined to a relatively small niche in the high-end market where they can address application requirements unmet by other types of architectures.

During the current year, IDC anticipates that all three segments should show continued strength. The midrange segment is expected to grow revenue by 25 percent, the biggest gain of the three segments in 1997.

The consultancy also expects the increased adoption and utilization of high-performance systems for simulation and modeling, design engineering and analysis, and product data management through industrial markets that will drive market expansion.

--Ed Golden

Resources

• International Data Corp.
  http://www.idcresearch.com

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