Worldwide converged systems market grows 1.1% during Q4

FRAMINGHAM, Mass., March 19, 2020 – According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, worldwide converged systems market revenue increased 1.1% year over year to $4.2 billion during the fourth quarter of 2019 (4Q19).

"Hyperconverged system sales remained robust during the fourth quarter and carried overall converged systems market growth despite annual declines of other product types," said Greg Macatee, research analyst, Infrastructure Platforms and Technologies at IDC. "The hyperconverged system growth picture was largely consistent across the globe with growth in every region in the low to mid double-digit range as these types of systems continue to provide value to a wide variety of businesses in both hybrid and multicloud environments given their easy-to-deploy and automated software-defined nature."

IDC's converged systems market view offers three segments: certified reference systems & integrated infrastructure, integrated platforms, and hyperconverged systems. The certified reference systems & integrated infrastructure market generated nearly $1.3 billion in revenue during the fourth quarter, which represents a contraction of 18.5% year over year and 30.7% of all converged systems revenue. The integrated platforms segment grew 0.1% year over year in 4Q19, generating $620 million worth of revenue. This amounted to 14.8% of the total converged systems market revenue. Revenue from hyperconverged systems grew 17.2% year over year during the fourth quarter and totaled $2.3 billion. This amounted to 54.5% of the total converged systems market revenue.

IDC offers two ways to rank technology suppliers within the hyperconverged systems market: by the brand of the hyperconverged solution or by the owner of the software providing the core hyperconverged capabilities. Rankings based on a branded view of the market can be found in the first table of this press release and rankings based on the owner of the hyperconverged software can be found in the second table within this press release. Both tables include all the same software and hardware, summing to the same market size.

As it relates to the branded view of the hyperconverged systems market, Dell Technologies was the largest supplier with $760.0 million in revenue and a 33.3% share. Nutanix generated $312.9 million in branded hardware revenue, representing 13.7% of the total HCI market during the quarter. There was a 3-way tie* for third between Cisco, Lenovo, and Hewlett Packard Enterprise, generating $138.0 million, $121.8 million, and $115.5 million in revenue, which represents 6.0%, 5.3%, and 5.1% share of the market share, respectively.

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