HP Sees Potential in HPC

by Tabrez Khan    Aug 11, 2008

HP is banking on high-performance computing (HPC) to increase its foothold in fast growing segments such as oil & gas, automotive design, digital content creation and financial services. These are computing-intensive segments that require faster, more intense and reliable computing that commercial applications may not be able to cater to, entirely on their own.

“HP’s high performance computing is enabling it to gain access to these segments, which would otherwise have been inaccessible,” says Faisal Paul, country manager, HP HPC. Digital content creation especially has emerged as an exciting arena where HPC applications are on a high-growth curve. This segment requires high computing power for applications such as creating millions of animation slides to render realistic real-time animation and digital content.

HPC is also increasingly being used in the financial services and insurance segment for applications such as investment portfolio analysis, risk management and economic modeling. In insurance particularly, factoring in a number of risk factors, quantifying risk involved in each assurance and deciding premia is becoming an increasingly automated process courtesy high-performance computing.

“Besides providing increased access to these fast growing segments, HPC also enables us to take innovation to customers early-on, as we can test a number of applications in minimal time on our high-performance computers,” adds Paul. Although high-performance computing still yields only $2-2.5 billion of HP’s global annual revenue of $100-105 billion, the intangible benefits it offers makes its actual contribution much higher, according to Paul.

According to an IDC report, the market for high-performance computing servers grew at 21% CAGR from 2004-07, clearly outpacing overall server market growth which was at 4.2% CAGR during this period. As per the IDC estimates HPC server revenue doubled from $ 5 billion in 2004 to $10 billion in 2007, while overall server market revenue grew from around $ 45 billion in 2004 to around $ 52 billion in 2007.

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