Converged Systems Revenue Increased 10.8% in 3Q17

Converged Systems Revenue Increased 10.8% in 3Q17

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According to IDC, worldwide converged systems market revenue increased 10.8% year over year to $2.99 billion during the third quarter of 2017 (3Q17). The market consumed 1.96 exabytes of new storage capacity during the quarter, which was up 30% compared to the same period a year ago.

IDC's converged systems market view offers three segments: certified reference systems & integrated infrastructure, integrated platforms, and hyperconverged systems. Certified reference systems & integrated infrastructure are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/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.

During the third quarter of 2017, the certified reference systems & integrated infrastructure segment generated revenues of $1.44 billion, which represents a year-over-year increase of 1.5% and 48.3% 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% share. Cisco/NetApp generated $485.5 million in sales, up 56.4% (Y/Y) and representing the second largest share of 33.6%.

Reference Systems & Integrated Infrastructure, Q3 2017 (Revenues in Millions)

Company

3Q17
Revenue

3Q17 Market Share

3Q16
Revenue

3Q16 Market Share

3Q17/3Q16 Revenue Growth

1. Dell

$697.2

48.3%

$729.1

51.2%

-4.4%

2. Cisco/NetApp

$485.5

33.6%

$310.4

21.8%

56.4%

3. HPE

$149.3

10.3%

$257.2

18.1%

-41.9%

All Others

$112.9

7.8%

$127.7

9.0%

-11.6%

Total

$1,444.9

100%

$1,424.3

100%

1.5%

Hyperconverged systems sales grew 68.0% year over year during the third quarter of 2017, generating $1 billion worth of sales. This amounted to 33.5% of the total converged systems market revenue. Dell was the largest supplier in this market segment with $306.8 million in revenue and a 30.6% share. Nutanix generated $207.4 million in revenue with the second largest share of 20.7%. As with all other segments of the converged systems market, vendor shares within the hyperconverged systems market segment are based on the brand of the solution. Sales of fully integrated solutions built with intellectual property from multiple suppliers, but branded by only one supplier, are attributed to the supplier branding the solution.

Hyperconverged Systems, Q3 2017 (Revenues in Millions)

Company

3Q17 Revenue

3Q17 Market Share

3Q16 Revenue

3Q16 Market Share

3Q17/3Q16 Revenue Growth

1. Dell

$306.8

30.6%

$118.8

19.9%

158.3%

2. Nutanix

$207.4

20.7%

$128.8

21.6%

61.1%

3. Cisco

$65.7

6.6%

$10.2

1.7%

541.5%

4. HPE

$35.6

3.6%

$14.6

2.4%

144.4%

All Others

$386.4

38.6%

$324.0

54.3%

19.3%

Total

$1,001.9

100%

$596.4

100%

68.0%

Integrated platforms sales declined 19.8% year over year during the third quarter of 2017, generating $542.7 million worth of sales. This amounted to 18.2% 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% share of the market segment.

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