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The Workstation Market’s Road to Recovery The workstation market posted another round of steadily improv- ing results for the fi rst quarter of 2010, taking one more solid step in its recovery from the lows of 2009. That fi nding by Jon Peddie Research (JPR) comes after the fi rm’s fi rst-quarter analysis as part of its “JPR Workstation Report” series. The technology and market research fi rm reports that the industry shipped 725,000 worksta- tions worldwide in the fi rst quarter, resulting in sequential growth of 1.1 percent and a year-over-year increase of 25.7 percent. While a welcome number, the 25.7 percent gain over the same quarter a year ago should be taken with a grain of salt, as it’s more of a refl ection on how bad the fi rst-quarter 2009 market performed than how good Q1 2010 turned out. Instead, it was the sequential gain that this time proved a better indica- tor of the progress the market is making in its climb back up to pre-recession levels. In periods of fl at or even modest growth, Q1 sales tend to lag those of Q4, so even a modest sequential uptick is a bull- ish sign. And from that perspective, this year’s fi rst quarter was stronger than might fi rst appear, as a 1.1 percent sequential increase for Q1 signals a market ahead of its normal pace— more evidence of sustained momentum for its recovery from the ugly days of last year. That said, it’s beginning to look like HP’s coronation as the new king of workstations might have been premature. After years of closing a major gap to market leader Dell, HP fl irted with volume leadership for three consecutive quarters, essen- tially deadlocked with Dell for Q4 2008 through Q2 2009. Finally, in the third quarter of 2009, HP surged ahead to take NEWS: WORKSTATIONS CG Market: More Growth to Come The computer graphics industry has been a growth industry since it was established in the late 1970s. Weathering the storms of the recession of 2009, the CG industry is back on track and showing new, invigo- rated vitality and potential. To this end, Jon Peddie Research is expecting that the computer graphics hardware market— which was worth $59 billion in 2009— should exceed $63 billion in 2010. In 2009, the CG software market was worth $11 billion (not counting services, maintenance, and other aspects) and should grow to $11.6 billion in 2010 as the industry shakes off the remaining NEWS: CG 6 August/September 2010 effects of the recession and starts replac- ing software tools. As a result of the pullback due to the recession, more people will be buying computer graphics software programs, and we will see the development of tradi- tional segments, like CAD/CAM, expand as new design approaches in automotive, aerospace, and architecture are brought forth. Visualization, a market that has been almost dormant for the past few years, is poised now for great expansion due to exciting and lower-cost technologies. Today, software programs for making movies and computer games, design- ing products, and creating simulations are exploiting the features of current CG hardware. We’re seeing the results in amazing realism and real-time capabili- ties for the next generation of fi lms and designs, and the trend is accelerating. The demand for programmers, artists, scientists, and designers has picked up again, and fi rms are actively looking for people who can use and exploit these new programs and their associated hardware accelerators. The economic recession has caused a slowdown, but it’s going to look like a small bump in the road by 2013. ■ the workstation shipment crown outright for the fi rst time. But HP didn’t get much time to revel in the top spot, as the very next quarter Dell’s shipments surged, and in the process, virtually eliminated the scant lead HP had been able to manage. And in the fi rst quarter of this year, the company had an upside once more, jumping back in front of HP 39.3 percent to 38.1 percent. Since HP looks to still have a slight edge in revenue, JPR’s calling it a tie, and Dell has been successfully served notice that workstation market leadership is back up for grabs. Amazingly, the professional graphics hardware market set a new record for shipments, surpassing 2007 and early 2008 numbers: The market shipped 1.26 billion total units, up 17.6 percent sequentially and a whopping 77.9 percent year-over- year. Not only was growth surprisingly hot, but the market managed to set a new record for units shipped, besting totals from the bullish days of late 2007 and early 2008. Given the exceptionally precipitous downturn of 2009, a new record wasn’t expected quite so soon, but the major benefi ciaries— Nvidia and AMD (ATI)—certainly aren’t complaining. Now in its sixth year, “JPR’s Workstation Report–Professional Computing Markets and Technologies” has established itself as the essential reference guide for hardware and software vendors and suppliers serving the workstation and professional graphics markets. Subscribers receive two in-depth reports per year, providing a comprehensive analysis of the vendors and technologies driving the workstation platform. Clients also receive four quarterly reports detailing and analyzing market results for each calendar quarter. ■