According to IDC, the high performance computing (HPC) market will see revenues rise to around $31.3 billion in 2019. Two years ago the HPC market was worth $21 billion, meaning a near 50% increase in revenues over only 5 years.
HPC power is becoming a foundation of electronic trading, which requires low latency networks and hundreds or even thousands of servers linked across the globe. Storage is also becoming another prevalent issue, with the sheer amount of data now being transmitted all needing to be housed. Regulatory requirements now in some countries require trade data to be held for up to 10 years.
HPC giants like Intel and HPE are surging ahead with creating ever more sophisticated networking equipment, with smaller start-ups hot on their heals. For example, Australia-based Metamako are soon to release a hybrid multi-layer switch with a 4 nanosecond packet-aware layer.
David Snowdon, co-founder of Metamako said: "We’re pushing the limits of physics."
The increasing revenues of the HPC market will further drive the development of HPC equipment. This is good news for electronic trading, where single digit millisecond latencies are now the norm. Low latency trading is now a core strategy for most capital markets firms, and it requires hardware at an ever increasing level of sophistication.