Skip to main content

Converged Systems Adapt to Hybrid Multi-cloud Demand

Global demand for enterprise data center server and storage infrastructure tends to fluctuate. According to the latest market study by International Data Corporation (IDC), worldwide converged systems market revenue increased 3.5 percent year-over-year to $3.75 billion during the third quarter of 2019 (3Q19).

"The converged systems market continues to grow despite a challenging overall data center infrastructure environment," said Sebastian Lagana, research manager at IDC.

Converged Systems Market Development

In particular, hyperconverged solutions remain in demand as vendors position the solutions as an ideal framework for hybrid, multi-cloud environments due to their software-defined nature and ease of integration into premises-agnostic environments.

The IDC converged systems market view offers three segments: certified reference systems & integrated infrastructure, integrated platforms, and hyperconverged systems.


The certified reference systems & integrated infrastructure market generated $1.26 billion in revenue during the third quarter, which represents a contraction of 8.4 percent year-over-year and 33.7 percent of all converged systems revenue.

Integrated platforms sales declined 13.9 percent year-over-year in 3Q19, generating $475 million worth of sales. This amounted to 12.6 percent of the total converged systems market revenue.

Revenue from hyperconverged systems sales grew 18.7 percent year-over-year during the third quarter of 2019, generating nearly $2.02 billion worth of vendor revenue. This amounted to 53.7 percent of the total converged systems market.

As it relates to the branded view of the hyperconverged systems market, Dell Technologies was the largest supplier with $708.4 million in revenue and a 35.1 percent share. Nutanix generated $262.2 million in branded hardware revenue, representing 13 percent of the total HCI market during the quarter.

There was a 3-way tie for third place between Cisco, Hewlett Packard Enterprise, and Lenovo, generating $109 million, $91.9 million, and $91.5 million in revenue each, which represents 5.4 percent, 4.6 percent, and 4.5 percent share of the market share respectively.

Outlook for Hyperconverged Software Growth

From the software ownership view of the market, new systems running VMware hyperconverged software represented $766.2 million in total 3Q19 vendor revenue or 38 percent of the total market.

Systems running Nutanix hyperconverged software represented $549.2 million in third-quarter vendor revenue or 27.2 percent of the total market. Both amounts represent the value of all HCI hardware, HCI software, and system infrastructure software sold, regardless of how it was branded at the hardware level.

Based on the latest market data study, demand for software-defined infrastructure seems promising. However, the ongoing shift to public cloud services may impact future growth in the enterprise market. CIOs and CTOs must balance the need for developer convenience with the potential for IT cost reduction.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

GenAI Revolution: The Future of B2B Sales Apps

When B2B buyers consider a purchase they spend just 17 percent of that time meeting with vendors. When they are comparing multiple suppliers‚ time spent with any one salesperson is 5 or 6 percent. Self-directed B2B buyer online research has already changed procurement. IT vendors are less likely to be involved in solution assessment. Now, more disruptive changes are on the horizon. By 2028, 60 percent of B2B seller work will be executed through conversational user interfaces via Generative Artificial Intelligence sales technologies -- that's up from less than 5 percent in 2023, according to Gartner. Generative AI Market Development "Sales operations leaders and their technology teams must prepare for the convergence of new forms of artificial intelligence, dynamic process automation, and reinvented deal-planning activities that will transform the sales function," said Adnan Zijadic, director analyst at Gartner . According to the Gartner assessment, Generative AI (GenAI) s

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of