Skip to main content

Converged Systems Transform Enterprise Data Centers

While much of the news about IT innovation focuses on public cloud computing, the on-premise data center is also being transformed by new technologies. CIOs have recognized that infrastructure complexity has inhibited their ability to rapidly provision resources for new workloads, and now they're adopting a variety of converged systems to overcome their legacy constraints.

According to the latest worldwide market study by International Data Corporation (IDC), the converged systems market increased revenue 11 percent year-over-year to $2.5 billion during the first quarter of 2016. The market generated 1,367 petabytes of new storage capacity shipments during the quarter, which was up 36.2 percent compared to the same period a year ago.

"End users within the mid-market and even in the outer edge of the enterprise data center continue to prioritize simplicity in all aspect of the user experience. This is at the heart of the rapid growth rate within hyper-converged systems." said Kevin Permenter, senior research analyst at IDC.

Going forward, IDC believes the IT vendors that can present the end user with a seamless and simple end-to-end experience will be well-positioned for further growth. However, those that do not adapt to the new business model will continue to experience market share erosion.


Converged Systems Market Segments

IDC distinguishes between three market segments -- Integrated Systems, Certified Reference Systems, and Hyperconverged Systems as follows:
  • Integrated systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software.
  • Like integrated systems, certified reference systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software.
  • Certified reference systems, however, are designed with systems from multiple technology vendors.
  • 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 ability to provide all compute and storage functions through the same server-based resources.
During the first quarter of 2016, the Integrated Systems market generated revenues of $1584.25 million, which represented a year-over-year increase of 1.8 percent and 62.8 percent of the total market value. EMC was the largest supplier of Integrated Systems with $403.90 million in sales, or 25.5 percent share of the market segment.

Certified Reference Systems sales rose 0.3 percent year over year during the first quarter of 2016, generating $567.95 million worth of sales. This amounted to 22.5 percent of the total market value. Cisco/NetApp was the top-ranked supplier of Certified Reference Systems in the quarter, generating revenues of $336.72 million and capturing a 46.86 percent share of the market segment.

Hyperconverged Systems sales grew by 148 percent year over year during the first quarter of 2016, generating $371.88 million worth of sales. This amounted to 14.7 percent of the total market value.

Popular posts from this blog

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

Virtual Reality Market Set to Reach $100 Billion

Virtual Reality (VR) market growth is now finally coming to fruition. Thanks to current actions and market momentum, VR is approaching what can be considered critical mass. And, not a moment too soon. This growth momentum comes from new hardware and content releases, accelerating enterprise value recognition, and a significant metaverse wild card that could potentially lift adoption and usage. According to the latest worldwide market study by ABI Research, over 85 million VR Head Mounted Displays (HMDs) will be shipped in 2027 across consumer and enterprise segments, creating a $100 billion VR market that includes hardware, software, and services. Virtual Reality Market Development "Expectations have been high in VR for years, and even decades, without notable growth to show. That growth is finally coming over the next five years," said Eric Abbruzzese, research director at ABI Research . The barrier to entry is lower than ever, all while content performance and user experien