Worldwide Converged Systems Revenue Increased 4.6% in 1Q17

Worldwide Converged Systems Revenue Increased 4.6% in 1Q17
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According to the new IDC study, the worldwide converged systems market revenues increased 4.6% year over year to $2.67 billion during the first quarter of 2017 (1Q17). The market consumed 1.48 exabytes of new storage capacity during the quarter, which was up only 7.1% compared to the same period a year ago.

IDC's converged systems market view offers four segments: integrated infrastructure, certified reference systems, integrated platforms, and hyperconverged systems. Integrated infrastructure and certified reference systems 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.

A key characteristic of hyperconverged systems that differentiate these solutions from other integrated systems is their scale-out architecture and their ability to provide all compute and storage functions through the same x86 server-based resources.

During the first quarter of 2017, the combined integrated infrastructure and certified reference systems market generated revenues of $1.37 billion, which represented a year-over-year decrease of 3.3% and 51.3% of the total market. Dell Inc. was the largest supplier of this combined market segment with $647.8 million in sales, or 47.2% share of the market segment.

Top 3 Vendors, Worldwide Integrated Infrastructure and Certified Reference Systems, 1Q17(Revenues in Millions)

Vendor

1Q17 Revenue

1Q17 Market Share

1Q16 Revenue

1Q16 Market Share

1Q17 /1Q16 Revenue Growth

1. Dell

$647.8

47.2%

$667.3

47.0%

-2.9%

2. Cisco/NetApp

$395.6

28.8%

$313.7

22.1%

26.1%

3. HPE

$206.2

15.0%

$291.1

20.5%

-29.2%

All Others

$122.8

9.0%

$146.9

10.4%

-16.4%

Total

$1,372.5

100%

1,419.1

100%

-3.3%

Source: IDC

Integrated Platform sales declined 13.3% year over year during the first quarter of 2017, generating $635.9 million worth of sales. This amounted to 23.8% of the total market revenue. Oracle was the top-ranked supplier of Integrated Platforms during the quarter, generating revenues of $348.7 million and capturing a 54.8% share of the market segment.

Top 3 Vendors, Worldwide Integrated Platforms, 1Q17 (Revenues in Millions)

Vendor

1Q17 Revenue

1Q17 Market Share

1Q16 Revenue

1Q17 Market Share

1Q17 /1Q16 Revenue Growth

1. Oracle

$348.7

54.8%

$379.6

51.8%

-8.1%

2. HPE

$61.7

9.7%

$65.8

9.0%

-6.2%

T3 IBM

$19.9

3.1%

$26.6

3.6%

-25.1%

T3 Hitachi

$19.6

3.1%

$28.0

3.8%

-30.1%

Others

$185.9

29.2%

$233.1

31.3%

-20.2%

Total

$635.9

100%

$733.1

100%

-13.3%

Source: IDC

Hyperconverged sales grew 64.7% year over year during the first quarter of 2017, generating $665.1 million worth of sales. This amounted to 24.9% of the total market value.