Global converged systems market revenue increased 4,5% year over year to $3,9-billion during the first quarter of 2020, according to IDC’s Worldwide Quarterly Converged Systems Tracker.
“The overall converged systems market showed resilience during a difficult macro environment in the first quarter of 2020,” says Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. “While the hyperconverged system market continued to expand as enterprises seek to take advantage of software-defined infrastructure, the Certified Reference Systems & Integrated Infrastructure segment posted its best quarter of growth since 2Q19 on the strength of richly configured platform sales related to demanding workloads in industries such as healthcare and telecoms.”
IDC’s 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 just over $1,4-billion in revenue during the first quarter, which represents growth of 4,4% year over year and accounts for 36,8% of all converged systems revenue.
Integrated platforms sales declined 8,7% year over year in 1Q20, generating $478-million worth of revenue. This amounted to 12,3% of the total converged systems market revenue.
Sales of hyperconverged systems grew 8,3% year over year during the first quarter of 2020, generating just under $2-billion worth of revenue. This amounted to 50,9% 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.
As it relates to the branded view of the hyperconverged systems market, Dell Technologies was the largest supplier with $666,3-million in revenue and a 33,6% share. Nutanix generated $260-million in branded hardware revenue, representing 13,1% of the total HCI market during the quarter. Hewlett Packard Enterprise finished the quarter in the number 3 spot with $118,7-million in revenue, which amounted to a 6% share.
The rankings based on the owner of the hyperconverged software show that new systems running VMware hyperconverged software represented $841,2-million in total 1Q20 vendor revenue, or 42,4% of the total market. Systems running Nutanix hyperconverged software represented $561,7-million in first quarter vendor revenue or 28,3% 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. As hardware sales are a major factor in these data, the chart should not be assumed to solely reflect, or completely align with, the respective companies’ overall software performance.
