Skip to main content

Converged Systems Market will Reach $21B by 2019

The public cloud service adoption trend has driven many changes at traditional IT organizations. In particular, savvy CIOs have introduced new converged system technology into their enterprise data centers, to improve automation and increase their agility.

As a result, converged systems are now established as a platform of choice for enterprise mission-critical workloads.

According to the latest worldwide market study by Technology Business Research (TBR), converged systems continue to displace traditional, stand-alone infrastructure, establishing the market as critical to the future longevity of data center hardware OEMs.

"The evolution of converged systems represents a landmark in the history of data center infrastructure," said Christian Perry, principal analyst and practice manager at TBR.

According to the TBR assessment, informed business technology decision-makers are overcoming internal resistance to IT change. They're deploying these converged systems rapidly, at the expense of traditional servers and storage arrays.

TBR has forecast that the converged systems market will exceed $21 billion by 2019, thereby directly threatening legacy IT vendor stand-alone infrastructure revenue.


That being said, converged systems are in a period of mainstream adoption, rendering the market crowded and highly competitive. Vendor differentiation is becoming challenging as capabilities across competing systems increasingly overlap.

In this climate, vendors are beginning to balance their portfolios between serving general-purpose workload needs and accommodating specific workloads -- such as big data analytics requiring high performance and reliability with purpose-built systems.

Converged systems vendors continue to seek applications with the most resource-intensive workloads. This creates opportunity, not only for increased converged systems sales, but also for professional services consulting, add-on software and add-on hardware sales.

Further market maturity and saturation will result in a more well-informed customer base, with decisions extending beyond the traditional IT department, to include line-of-business (LoB) executives in the procurement process.

Therefore, successful vendors will focus on balancing their technology-driven workload expertise and their ability to help customers achieve improved business outcomes -- this proven approach will be critical to maximizing market development.

Popular posts from this blog

AI-Driven Data Center Liquid Cooling Demand

The rapid evolution of artificial intelligence (AI) and hyperscale cloud computing is fundamentally reshaping data center infrastructure, and liquid cooling is emerging as an indispensable solution. As traditional air-cooled systems reach their physical limits, the IT industry is under pressure to adopt more efficient thermal management strategies to meet growing demands, while complying with stringent environmental regulations. Liquid Cooling Market Development The latest ABI Research analysis reveals momentum in liquid cooling adoption. Installations are forecast to quadruple between 2023 and 2030. The market will reach $3.7 billion in value by the decade's end, with a CAGR of 22 percent. The urgency behind these numbers becomes clear when examining energy metrics: liquid cooling systems demonstrate 40 percent greater energy efficiency when compared to conventional air-cooling architectures, while simultaneously enabling ~300-500 percent increases in computational density per rac...