Worldwide Converged Systems Revenue Increased 6.2% Year Over Year in the Second Quarter of 2017 with Vendor Revenue at $3.15 Billion

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The FINANCIAL — According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, worldwide converged systems vendor revenues increased 6.2% year over year to $3.15 billion during the second quarter of 2017 (2Q17).

The market consumed 1.78 exabytes of new storage capacity during the quarter, which was up 5.6% compared to the same period a year ago.

“The converged systems market is benefiting from an expansion into new environments and a new set of customers,” said Eric Sheppard, research director, Enterprise Storage & Converged Systems. “This expansion is driven by products that are offering new levels of automation, tighter integration between technologies ,and, in many cases, software-defined solutions based on scale-out architectures.”

Converged Systems Segments

IDC’s converged systems market view recognizes 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 second quarter of 2017, the combined integrated infrastructure and certified reference systems market generated revenues of $1.56 billion, which represented a year-over-year decrease of 1.5% and 49.6% of the total market. Dell Inc. was the largest supplier of this combined market segment with $758 million in sales, or 48.5% share of the market segment.

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Integrated Platform sales declined 4.9% year over year during the second quarter of 2017, generating $822.3 million worth of sales. This amounted to 26.1% of the total market revenue. Oracle was the top-ranked supplier of Integrated Platforms during the quarter, generating revenues of $510 million and capturing a 62.1% share of the market segment.

Hyperconverged sales grew 48.5% year over year during the second quarter of 2017, generating $763.4 million worth of sales. This amounted to 24.2% of the total market value.


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