Worldwide converged systems revenue increased 19.6% year over year during the first quarter of 2018
Jun 26, 2018
FRAMINGHAM, Mass., June 26, 2018 – According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, worldwide converged systems market revenue increased 19.6% year over year to $3.2 billion during the first quarter of 2018 (1Q18).
"Organizations around the world are increasing their investments on datacenter technologies that eliminate inefficient silos and support business-centric decisions rather than infrastructure-centric decisions," said Eric Sheppard, research vice president, Server and Storage Infrastructure at IDC. "This is driving increased spending on converged systems that can safely reduce the complexity of datacenter infrastructure and allow IT teams to focus on high-value business projects."
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 $1.3 billion in revenue during the first quarter, which represents a 0.9% year-over-year decline and 41.7% of total converged systems revenue. Dell Inc. was the largest supplier in this market segment with $641.3 million in sales and a 48.0% share. Cisco/NetApp generated $462.0 million in sales, representing the second largest share of 34.6%. HPE generated $105.3 million in sales, representing 7.9% market share.
Revenue from hyperconverged systems sales grew 76.3% year over year during the first quarter of 2018, generating $1.2 billion worth of sales. This amounted to 38.3% of the total converged systems market.
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 second table of this press release and rankings based on the owner of the hyperconverged software can be found in the third 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 market, Dell Inc. was the largest supplier of hyperconverged systems with $363.0 million in revenue and a 29.6% share. Nutanix generated $273.0 million in branded revenue with the second largest share of 22.2%. HPE and Cisco were statistically tied** for the quarter, with $61.0 million and $59.9 million in revenue, or 5.0% and 4.9% in market share, respectively.
From the software ownership view of the market, systems running VMware's hyperconverged software represented $456.3 million in first quarter vendor revenue, or 37.2% of the total market. Systems running Nutanix's hyperconverged software represented $398.7 million in total first quarter vendor revenue, or 32.5% of the total market. Both amounts represent all software and hardware, regardless of how it was ultimately branded.
Integrated platforms sales increased 0.9% year over year during the first quarter of 2018, generating $641.2 million worth of sales. This amounted to 20.0% of the total converged systems market value. Oracle was the top-ranked supplier of integrated platforms during the quarter, generating revenues of $356.8 million and capturing a 55.6% share of the market segment.
IDC defines converged 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.
Certified reference systems & integrated infrastructure 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. Market values for all three segments includes hardware and software but excludes services and support.
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