Worldwide High Performance Computing Market Forecast: Pre-Announce Guidance Related to the Effects of COVID-19

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

This Intersect360 Research report presents early guidance on the effects on our worldwide forecast for the High Performance Computing (HPC) market due
to the global COVID-19 pandemic.

Intersect360 Research previously reported that total worldwide market revenue for HPC was $36.1 billion, forecast to grow to $38.7 billion in 2019 and
$41.4 billion in 2020. We expect to release final market revenue numbers for 2019 to clients in the next calendar quarter, along with an updated five-year
forecast, 2020 through 2024. Our demand-side, end-user survey data suggests the 2019 market performance will be close to our forecast; COVID-19 did
not have a significant effect on the worldwide HPC market in 2019.

At this time, we project that 2020 market revenue will fall significantly short of our previous forecast, as a direct result of the pandemic. This
shortfall will not be evenly spread across market segments. There will be certain segments that may perform at or even above our previous forecast.
Conversely, some segments will be significantly below the average decline. This report looks at relevant segmentations—products and services
(servers, storage, networks, services, and cloud computing), vertical markets, and regions—to give specific pre-release guidance to our clients.

Intersect360 Research defines HPC as the use of servers, clusters, and supercomputers—plus associated software, tools, components, storage, and services—for
scientific, engineering, or analytical tasks that are particularly intensive in computation, memory usage, or data management.

This report is supported by end-user survey data, primarily from our annual HPC Budget Map survey. Data for this survey was collected in February and March
2020, including follow-up questions to most participants that specifically inquired about budgetary effects from COVID-19. The data from these specific
COVID-19 questions are discussed in this report. Full reports in our HPC Budget Map series are forthcoming.

TABLE OF CONTENTS

INTRODUCTION

What Is HPC?

HPC 2020 MARKET FORECAST ADJUSTMENT

Figure 1: Revised 2020 Forecast, Total HPC Market Revenue ($000)

Vertical Market Segmentation Outlook

Table 1: 2020 HPC Spending Forecast Adjustment by Vertical Market

Product and Services Segmentation Outlook

Table 2: 2020 HPC Spending Forecast Adjustment by Products and Services

Region Segmentation Outlook

Table 3: 2020 HPC Spending Forecast Adjustment by Region

Uncertainty

APPENDIX A: END-USER DATA RELATED TO COVID-19

APPENDIX B: METHODOLOGY AND SEGMENT DEFINITIONS

Vertical Market Segmentation Definitions

Product and Services Segmentation Definitions

Region Segmentation Definitions