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Converged Systems Revenue Reached $2.99B in 3Q17

Worldwide converged systems market revenue increased 10.8 percent year-over-year to $2.99 billion during the third quarter of 2017 (3Q17), according to the latest market study by International Data Corporation (IDC). The market consumed 1.96 exabytes of new storage capacity during the quarter, which was up 30 percent compared to the same period a year ago.

"The converged systems market expanded on multiple fronts, most notably within hyperconverged solutions," said Eric Sheppard, research director at IDC. "While hyperconvergence is not the sole source of market growth, it has undeniably driven an expansion of this market into new environments at a very rapid pace."

Converged Systems Market Development

IDC's converged systems market view offers three segments: certified reference systems and integrated infrastructure, integrated platforms, and hyperconverged systems. Certified reference systems and integrated infrastructure are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element or 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 third quarter of 2017, the certified reference systems and integrated infrastructure segment generated revenues of $1.44 billion, which represents a year-over-year increase of 1.5 percent and 48.3 percent of the total converged systems market value.

Dell Inc. was the largest supplier in this market segment, with $697.2 million in sales and a 48.3 percent share. Cisco/NetApp generated $485.5 million in sales, up 56.4 percent (Y/Y) and representing the second largest share of 33.6 percent.

Hyperconverged systems sales grew 68 percent year over year during the third quarter of 2017, generating $1 billion worth of sales. This amounted to 33.5 percent of the total converged systems market revenue.

Dell Inc. was the largest supplier in this market segment with $306.8 million in revenue and a 30.6 percent share. Nutanix generated $207.4 million in revenue with the second largest share of 20.7 percent.

Integrated platforms sales declined 19.8 percent year over year during the third quarter of 2017, generating $542.7 million worth of sales. This amounted to 18.2 percent of the total converged systems market value.

Oracle was the top-ranked supplier of integrated platforms during the quarter, generating revenues of $240.4 million and capturing a 45.8 percent share of the market segment.

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