I do expect more consolidation in this space. There aren’t many players doing what SGI (and the day job) does.
The story is here.
The interesting thing about this is, that this is in the high performance data analytics appliance space. As they write:
The explosion of data — in volume and variety, across all sectors and applications — is driving organizations to adopt high-end computing systems to run compute-intensive applications and big data workloads that traditional infrastructure solutions cannot handle. This includes investments in big data analytics to quickly and securely process massive data sets and enable real-time decision making. High-end systems are being used to advance research in weather, genomics and life sciences, and enhance cyber defenses at organizations around the world.
As a result of this demand, according to International Data Corporation (IDC), the $11 billion HPC segment is expected to grow at an estimated 6-8% CAGR over the next three years1, with the data analytics segment growing at over twice that rate.
12-16% CAGR for data analytics, which I think is low … . And the point they may about the data explosion is exactly what we talk about as well.
I’ve written about this in the past, with the cloud model (ultra cheap/deep/inefficient, scale performance by throwing incredible amounts of hardware at a problem … at a fairly sizeable cost, even if it is OpEx), or … far more efficient, far faster, better designed systems that can provide unapologetic massive firepower efficiently, so you need far … far less hardware to accomplish the same thing, at a corresponding savings in CapEx/OpEx.
There aren’t many players in this space, so lets see what else happens.