The projected shortfall in growth is due to two factors:
- Eurozone crisis. Poor macroeconomic conditions in Europe will contribute to a slowdown on spending in the region, particularly in High Performance Technical Computing (HPTC) applications in the government and academic sectors. Recent survey data on projected spending supports this assumption.
- Thailand flooding causing disk drive shortages. Storage is the third-largest product spending category and has the highest five-year forecast compound annual growth rate (CAGR). Severe flooding in Thailand has disrupted disk production, causing temporary product shortages and a short-term spike in prices, which will cause a shift in some product revenue from 2011 to 2012.
The information in this report is preliminary guidance pending a full yearend analysis. Intersect360 Research is not changing its five-year CAGR for the total HPC industry at this time. We will perform a full analysis of 2011 revenues and budget expectations to publish an updated five-year forecast in the first half of 2012.