Converged Systems Revenue Increased 9.9 Percent in 2Q18

Converged Systems Revenue Increased 9.9 Percent in 2Q18
Depositphotos

According to IDC, worldwide converged systems market revenue increased 9.9% year over year to $3.5 billion during the second quarter of 2018 (2Q18).

"Datacenter infrastructure convergence remains an important investment driver for companies around the world," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "HCI solutions helped to drive second quarter market expansion thanks, in part, to their ability to reduce infrastructure complexity, promote consolidation, and allow IT teams to support an organization's business objectives.

The certified reference systems & integrated infrastructure market generated $1.3 billion in revenue during the second quarter, which was a year-over-year decline of 13.9% and represented 38.1% of total converged systems revenue. Dell was the largest supplier in this market segment with $639.8 million in sales and a 47.5% share. Cisco/NetApp generated $481.0 million in sales, representing the second largest share of 35.7%. HPE had $108.4 million in sales, 8.1% market share.

Integrated platforms sales declined 12.5% year over year during the second quarter, generating revenues of $729.4 million. This amounted to 20.7% of the total converged systems market revenue. Oracle was the top-ranked supplier of integrated platforms during the quarter, generating revenues of $440.6 million and capturing a 60.4% share of this market segment. Revenue from hyperconverged systems sales grew 78.1% year over year during the second quarter of 2018, generating $1.5 billion worth of sales. This amounted to 41.2% of the total converged systems market.

From the software ownership view of the market, systems running Nutanix's hyperconverged software represented $497.7 million in total second quarter vendor revenue, or 34.2% of the total market. Systems running VMware's hyperconverged software represented $495.8 million in second quarter vendor revenue, or 34.1% of the total market. Both amounts represent all software and hardware revenue, regardless of how it was ultimately branded.