Worldwide converged systems market revenue increased 10,9% year over year to $3,9-billion during the second quarter of 2019 (2Q19), according to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker.
“The value proposition of converged infrastructure solutions has evolved to align with the needs of a hybrid cloud world,” says Eric Sheppard, research vice-president: infrastructure platforms and technologies at IDC. “Modern converged solutions are driving growth because they allow organisations to leverage standardised, software-defined, and highly automated datacenter infrastructure that is increasingly the on-premises backbone of a seamless multi-cloud world.”
IDC’s converged systems market view offers three segments: certified reference systems and integrated infrastructure, integrated platforms, and hyperconverged systems.
The certified reference systems and integrated infrastructure market generated nearly $1,5-billion in revenue during the second quarter, which represents 10,5% year-over-year growth and 37,5% of total converged systems revenue.
Integrated platforms sales declined 14,4% year over year during the second quarter of 2019, generating $626-million worth of sales. This amounted to 16% of the total converged systems market revenue.
Revenue from hyperconverged systems sales grew 23,7% year over year during 2Q19, generating $1,8-billion worth of sales. This amounted to 46,6% of the total converged systems market.
IDC offers two ways to rank technology suppliers within the hyperconverged systems market: by the brand of the hyperconverged solution or by the owner of the software providing the core hyperconverged capabilities. Rankings based on a branded view of the market can be found in the first table of this press release and rankings based on the owner of the hyperconverged software can be found in the second table within this press release. Both tables include all the same software and hardware, summing to the same market size.
As it relates to the branded view of the hyperconverged systems market, Dell Technologies was the largest supplier with $533,2-million in revenue and a 29,2% share. Nutanix generated $258,8-million in branded revenue, which represented 14,2% of the total HCI market during the quarter. Cisco was the third largest branded HCI vendor with $114-million in revenue representing a 6,2% market share.
From the software ownership view of the market, systems running VMware hyperconverged software represented $694,1-million in total 2Q19 vendor revenue, or 38% of the total market. Systems running Nutanix hyperconverged software represented $522-million in second quarter vendor revenue or 28,6% of the total market. Both amounts represent the value of all HCI hardware, HCI software and system infrastructure software, regardless of how it was branded.