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Data Centres

Data Centres

Worldwide Converged Systems Market Grows 3.5% Year Over Year During the Third Quarter of 2019, According to IDC

Via IDC

Dec 12, 2019

12 Dec 2019

FRAMINGHAM, Mass., December 12, 2019 – According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, worldwide converged systems market revenue increased 3.5% year over year to $3.75 billion during the third quarter of 2019 (3Q19).

"The converged systems market continues to grow despite a challenging overall datacenter infrastructure environment," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "In particular, hyperconverged solutions remain in demand as vendors do an excellent job positioning the solutions as an ideal framework for hybrid, multi-cloud environments due to their software-defined nature and ease of integration into premises-agnostic environments."

Converged Systems Segments

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 roughly $1.26 billion in revenue during the third quarter, which represents a contraction of 8.4% year over year and 33.7% of all converged systems revenue. Integrated platforms sales declined 13.9% year over year in 3Q19, generating $475 million worth of sales. This amounted to 12.6% of the total converged systems market revenue. Revenue from hyperconverged systems sales grew 18.7% year over year during the third quarter of 2019, generating nearly $2.02 billion worth of sales. This amounted to 53.7% of the total converged systems market.

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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 $708.4 million in revenue and a 35.1% share. Nutanix generated $262.2 million in branded hardware revenue, representing 13.0% of the total HCI market during the quarter. There was a 3-way tie* for third between Cisco, Hewlett Packard Enterprise, and Lenovo, generating $109.0 million, $91.9 million, and $91.5 million in revenue each, which represents 5.4%, 4.6%, and 4.5% share of the market share respectively.

**a ** Dell Technologies represents the combined revenues for Dell and EMC sales for all quarters shown.

***** IDC declares a statistical tie in the worldwide converged systems market when there is a difference of one percent or less in the share of revenues or unit shipments among two or more vendors.

From the software ownership view of the market, new systems running VMware hyperconverged software represented $766.2 million in total 3Q19 vendor revenue, or 38.0% of the total market. Systems running Nutanix hyperconverged software represented $549.2 million in third quarter vendor revenue or 27.2% of the total market. Both amounts represent the value of all HCI hardware, HCI software, and system infrastructure software sold, regardless of how it was branded at the hardware level.

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