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

Digital Transformation Growth Defies Market Volatility

The forward-looking CEO's commitment to ongoing investment in Information Technology (IT) is persistent. Worldwide IT spending is forecast to total $4.4 trillion in 2022 -- that's an increase of 4 percent from 2021, according to the latest worldwide market study by Gartner, Inc.   "This year is proving to be one of the noisiest years on record for CIOs," said John-David Lovelock, vice president at Gartner . Regardless, digital transformation remains a high priority across the globe. Geopolitical disruption, inflation, currency fluctuations, and supply chain challenges are among the many market volatility factors vying for attention, yet contrary to what Gartner saw at the start of 2020, enterprise CIOs are accelerating IT investments in 2022. Digital Transformation Market Development As a result, purchasing and investing preferences will be focused on areas including data analytics, cloud computing, seamless customer experiences, and IT security. Inflation impacts on

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut