Can HPE Maintain Lead in High Performance Computing Market?


Aug. 22 2018, Updated 10:30 a.m. ET


High performance computing (or HPC) is a market for supercomputers and cloud services that enterprises use for running applications. According to Hyperion Research, the HPC market including servers was valued at $24.3 billion in 2017. This market is estimated to reach $38.4 billion in 2022.

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HPE led the HPC server market in 2017

As seen in the above chart, Hyperion has valued the HPC server market at $12.26 billion at the end of 2017. Hewlett Packard Enterprise (HPE) accounted for 34% of the total market with sales of $4.2 billion. Other major players in this market include Dell Technologies (DVMT), China’s (FXI) Lenovo (LNVGY), Inspur, and IBM (IBM) with sales of $2.33 billion, $869 million, $740 million, and $57 million, respectively.

Are enterprises renting out HPC products?

According to Forbes report, enterprises are increasingly looking to rent out HPC products to run applications, which might create problems for big box manufacturers like HPE, Dell, and IBM. HPC cloud companies such as Rescale provide hybrid multi-cloud platforms for enterprises. Rescale has partnered with four leading cloud service providers and has 125 enterprise customers.

Rescale raised $32 million in funding from Keen Venture Partners, Initialized Capital, and SineWave Ventures. According to Keen Venture Partners, Rescale is “disrupting the high performance computing market. The market is currently 95% on-premise, and Rescale supports customers as they move to hybrid and eventually to a fully cloud native solution — letting them optimize IT resources and enable meaningful productivity and cost improvements.”


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