Converged Systems Revenue Increased 19.6 Percent in 1Q18

Converged Systems Revenue Increased 19.6 Percent in 1Q18
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According to IDC, worldwide converged systems market revenue increased 19.6% year over year to $3.2 billion during the first quarter of 2018 (1Q18).

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 $1.3 billion in revenue during the first quarter, which represents a 0.9% year-over-year decline and 41.7% of total converged systems revenue.

Dell was the largest supplier in this market segment with $641.3 million in sales and a 48.0% share. Cisco/NetApp generated $462.0 million in sales, representing the second largest share of 34.6%. HPE generated $105.3 million in sales, representing 7.9% market share.

Top 3 Companies, Certified Reference Systems & Integrated Infrastructure, 1Q18 (Revenues in Millions)

Company

1Q18 Revenue

1Q18 Share

1Q17 Revenue

1Q17 Share

1Q18/1Q17 Growth

1. Dell

$641.3

48.0%

$648.0

48.0%

-1.0%

2. Cisco/NetApp

$462.0

34.6%

$395.6

29.3%

16.8%

3. HPE

$105.3

7.9%

$182.9

13.6%

-42.4%

All Others

$128.5

9.6%

$122.9

9.1%

4.6%

Total

$1,337.1

100%

$1,349.4

100%

-0.9%

Revenue from hyperconverged systems sales grew 76.3% year over year during the first quarter of 2018, generating $1.2 billion worth of sales. This amounted to 38.3% 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 second table of this press release and rankings based on the owner of the hyperconverged software can be found in the third 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 market, Dell was the largest supplier of hyperconverged systems with $363.0 million in revenue and a 29.6% share. Nutanix generated $273.0 million in branded revenue with the second largest share of 22.2%. HPE and Cisco were statistically tied for the quarter, with $61.0 million and $59.9 million in revenue, or 5.0% and 4.9% in market share, respectively.

Top 3 Companies, Worldwide Hyperconverged Systems, Q1 2018 (Revenues in Millions)

Company

1Q18 Revenue

1Q18 Share

1Q17 Revenue

1Q17 Share

1Q18/1Q17 Growth

1. Dell

$363.0

29.6%

$150.0

21.6%

142.0%

2. Nutanix

$273.0

22.2%

$159.2

22.9%

71.5%

T3. HPE

$61.0

5.0%

$28.7

4.1%

112.3%

T3. Cisco

$59.9

4.9%

$24.5

3.5%

145.0%

All Others

$470.4

38.3%

$333.6

47.9%

41.0%

Total

$1,227.2

100%

$696.0

100%

76.3%