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Worldwide HPC Server Revenue Grows 3.9% in Third Quarter, IDC Reports

FRAMINGHAM, Mass. — (BUSINESS WIRE) — December 27, 2016 — Worldwide factory revenue for the high performance computing (HPC) technical server market grew by 3.9% to $2.8 billion in the third quarter of 2016 (3Q16), compared with $2.7 billion in the prior-year third quarter. Revenue for the first three quarters of 2016 totaled $8.1 billion, up 3.4% from the $7.8 billion total for the same period last year, according to new data from International Data Corporation ( IDC) Worldwide High-Performance Technical Server QView.

In 3Q16, strong revenue growth in higher-end HPC server systems was partially offset by revenue declines in lower-priced systems.

Reflecting the tilt toward higher-priced systems, unit shipments decreased from 71,479 in the first three quarters of 2015 to 63,385 in the same period of 2016, while the average selling price (ASP) rose from $109,280 to $127,411.

"In the third quarter of 2016, HPC was a bright spot in the overall worldwide server market, which IDC previously reported declined 7.0% year over year to $12.5 billion in the quarter," said Earl Joseph, IDC program vice president for Technical Computing. "Higher-priced systems led the way with year-over-year growth exceeding 22%, while lower-priced system revenue declined."

"The workgroup segment, and especially the departmental segment, substantially ramped up purchases of HPC servers in the period 2012-2015, in tune with the global economic recovery. In the first three quarters of 2016, more of these buyers were in a position to wait a while before buying another system. IDC expects this dip to be temporary," added Kevin Monroe, IDC senior research analyst for Technical Computing.

3Q16 Vendor Highlights

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, please contact Kevin Monroe at kmonroe@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. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group ( IDG), the world's leading media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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Earl Joseph, 612-812-5798
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Kevin Monroe, 650-245-9266
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Michael Shirer, 508-935-4200
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