Worldwide converged systems revenue increased 4.6% year over year in the first quarter of 2017 with vendor revenue at $2.67 billion, according to IDC

FRAMINGHAM, Mass., June 22, 2017 – According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, the worldwide converged systems market revenues increased 4.6% year over year to $2.67 billion during the first quarter of 2017 (1Q17). The market consumed 1.48 exabytes of new storage capacity during the quarter, which was up only 7.1% compared to the same period a year ago.

"Converged systems have become an important source of innovation and growth for the data center infrastructure market," said Eric Sheppard, research director, Enterprise Storage & Converged Systems. “These solutions represent a conduit for the key technologies driving much needed data center modernization and efficiencies such as flash, software-defined infrastructure and private cloud platforms."

Converged Systems Segments

IDC's converged systems market view offers four segments: integrated infrastructure, certified reference systems, integrated platforms, and hyperconverged systems. Integrated infrastructure and certified reference systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software. Integrated Platforms are integrated systems that are sold with additional pre-integrated packaged software and customized system engineering optimized to enable such functions as application development software, databases, testing, and integration tools. Hyperconverged systems collapse core storage and compute functionality into a single, highly virtualized solution. A key characteristic of hyperconverged systems that differentiate these solutions from other integrated systems is their scale-out architecture and their ability to provide all compute and storage functions through the same x86 server-based resources.

During the first quarter of 2017, the combined integrated infrastructure and certified reference systems market generated revenues of $1.37 billion, which represented a year-over-year decrease of 3.3% and 51.3% of the total market. Dell Inc. was the largest supplier of this combined market segment with $647.8 million in sales, or 47.2% share of the market segment.

Top 3 Vendors, Worldwide Integrated Infrastructure and Certified Reference Systems, First Quarter of 2017 (Revenues are in Millions)
Vendor 1Q17 Revenue 1Q17 Market Share 1Q16 Revenue 1Q16 Market Share 1Q17 /1Q16 Revenue Growth
1. Dell Inc.* $647.8 47.20% $667.3 47.00% -2.90%
2. Cisco/NetApp $395.6 28.80% $313.7 22.10% 26.10%
3. HPE $206.2 15.00% $291.1 20.50% -29.20%
All Others $122.8 9.00% $146.9 10.40% -16.40%
Total $1,372.5 100% 1,419.10 100% -3.30%

Source: IDC Worldwide Quarterly Converged Systems Tracker, June 22, 2017

*** Note** : Dell Inc. represents the combined revenues for Dell and EMC sales for all quarters shown.

Integrated Platform sales declined 13.3% year over year during the first quarter of 2017, generating $635.9 million worth of sales. This amounted to 23.8% of the total market revenue. Oracle was the top-ranked supplier of Integrated Platforms during the quarter, generating revenues of $348.7 million and capturing a 54.8% share of the market segment.

Top 3 Vendors, Worldwide Integrated Platforms, First Quarter of 2017 (Revenues are in Millions)
Vendor 1Q17 Revenue 1Q17 Market Share 1Q16 Revenue 1Q17 Market Share 1Q17 /1Q16 Revenue Growth
1. Oracle $348.7 54.80% $379.6 51.80% -8.10%
2. HPE $61.7 9.70% $65.8 9.00% -6.20%
T3* IBM $19.9 3.10% $26.6 3.60% -25.10%
T3* Hitachi $19.6 3.10% $28.0 3.80% -30.10%
All Others $185.9 29.20% $233.1 31.30% -20.20%
Total $635.9 100% $733.1 100% -13.30%

Source: IDC Worldwide Quarterly Converged Systems Tracker, June 22, 2017

*** Note:** IDC declares a statistical tie in the worldwide converged systems market when there is a difference of one percent or less in the vendor revenue shares among two or more vendors.

Hyperconverged sales grew 64.7% year over year during the first quarter of 2017, generating $665.1 million worth of sales. This amounted to 24.9% of the total market value.

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Taxonomy Notes:

IDC defines converged and hyperconverged systems as pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software. Systems not sold with all four of these components are not counted within this tracker. Specific to management software, IDC includes embedded or integrated management and control software optimized for the auto discovery, provisioning and pooling of physical and virtual compute, storage and networking resources shipped as part of the core, standard integrated system. Numbers in this press release may not sum due to rounding.

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