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Grantley HPC Whisper

Grantley HPC Whisper
 

Research Question: Is there pent-up demand in the high-performance computing market for an upgrade to the Grantley platform and will it be a catalyst for significant capex spending?

Companies Covered: Mellanox Technologies  (MLNX), Cray (CRAY), EMC Corporation (EMC), Hewlett-Packard (HPQ), International Business Machines (IBM)

Report Available: July 9, 2014

 

Blueshift’s initial research shows mixed expectations for sales of the Grantley platform in the HPC market when it is released in the second half of 2014.

 

Observations

  1. Management comments during Intel’s Q1 2014 earnings report indicated that it expects the markets interested in Grantley, the next-generation Xeon server processor, to have lined up purchase plans based on the launch dates. Therefore, there is anticipation for solid sales upon launch in 2H 2014. The expected strong sales and interest in Grantley were reiterated during MLNX’s Q1 2014 earnings call, as management reported the HPC market segment sales slowed because purchasing of its InfiniBand solutions are being delayed as the HPC centers wait for the CPU refresh to the Grantley platform. Expectations are for sales to the HPC market of MLNX’s InfiniBand interconnect products to begin to ramp up following the Grantley launch and for growth to continue into 2015.
  2. The HPC market is expected to grow at a 4.6% compounded annual growth rate for the next four years according to a recent report published by Intersect360 Research. The report indicates that HPC users are going against the trend of reducing spending on servers because of high levels of competition in business/industry, scientific research, and a need to maintain strong national security. In addition to the HPC market, the 10 Gigabit Ethernet (10GbE) server networking market is also showing growth before the release of Grantley.
  3. Blueshift’s May 27, 2014 MLNX report had 10 sources comment on the Grantley upgrade. Eight of those sources, representing HPC centers, OEMs, and VARs do not expect the Grantley launch to result in a sales boost to the HPC market.

 

Will the Grantley server chip launch spur spending on High Performance Computing?  Is there pent-up demand as the HPC market waits for this chip? If so, what is the magnitude of the increased spending/pent-up demand? When would this spend begin (what quarter)? To address these questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: High-performance computing centers, OEMs serving HPC, VARs serving HPC, and industry specialists.

 

To see other ideas Blueshift Research is currently working on, please click here.