April 9th, 2018 by Adam Armstrong
IDC Converged Systems Revenue Report for 4Q17; Dell EMC & VMware Leaders
The International Data Corporation (IDC) ran its quarterly Converged Systems Tracker recently and saw that worldwide converged systems market revenue increased 9.1% year over year to $3.6 billion during the fourth quarter of 2017. IDC reported that sales for the entire year was over $12.5 billion or a 9.4% increase over the $12 billion in 2016. This seems to suggest that there is a slow, but steady increase in converged infrastructure across enterprises.
The IDC Converged Systems Tracker looks at three different segments: certified reference systems & integrated infrastructure, integrated platforms, and hyperconverged systems. The certified reference systems & integrated infrastructure market generated $1.7 billion in revenue during the fourth quarter. Revenue from hyperconverged systems sales grew 69.4% year over year to $1.25 billion during the fourth quarter of 2017. What’s more interesting to note here, when looking at the market in these terms, HCI is growing much more rapidly than the total numbers seem to indicate.
IDC further broke down into vendors that sold both certified reference systems & integrated infrastructure and hyperconverged systems. While Dell EMC took the top spot in both categories it is a bit harder to discern what is going on here as Dell sells systems for competing HCI solutions such as VMware and Nutanix. A more telling portrayal is looking specifically at HCI software. Here VMware is in the top spot with its vSAN and it shot past Nutanix going from a market share 26% and $191 million in revenue to 32.4% and $405 million in revenue compared to Nutanix market share that dropped from 31.4% to 29.5% in the same time.
It will be interesting to see if HCI continues to grow at such a rapid rate in the future as well as which vendor will be on top. VMware is climbing at an impressive rate.