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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, 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 IDC Worldwide High-Performance Technical Server Q View.
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 combined "Other" category captured 22.1% of the HPC server market and 21.5% of the Supercomputers segment. The "Other" category includes more than 30 smaller HPC server system vendors. Their collective market share demonstrates that barriers to entry into the HPC server market remain relatively low.