2019 Updated Cloud Market Forecast

This Hyperion Research study presents our updated five-year forecast (2019-2024) for HPC on-premise server systems. This forecast includes the potential impacts to the HPC market from the covid-19 virus' effect on the world’s economy. Overall, the forecast has been reduced dramatically for 2020, with a partial recovery starting in 2021 and impacts lasting over the entire period.

Running HPC workloads in the cloud has undergone a fundamental shift over the past few years as CSPs have made a concerted effort to address the needs of HPC users, both for traditional HPC workloads as well as AI applications. Cloud adoption continues to rapidly increase for both current and new users, leading to a projection of end user HPC cloud spending to reach almost $9 billion by 2024. The spending for cloud resources by HPC end users primarily augments their spending for on-premise servers, as most users employ the cloud to complement, rather than replace, on-premise resources. There is much higher cloud adoption by workgroup users, suggesting that workgroup users are shifting some of their on-premise workloads to the cloud.