SDxCentral
Join Login
SD-WAN 4 5G 5 MEC IoT 4 SDN 5 NFV 6 Containers 5 Cloud 9 Security 8 AI 2 Converged DC 3 SD-Storage 2 NPM/APM 1

Login to SDxCentral

Your login link has been emailed to you.

Or login with your password

Enter Your Password

Forgot your password? Login as a different user?
  • Directory
  • Reports
  • Webinars
  • eBooks
  • eBriefs
  • White Papers
  • Sponsored Content
  • Videos
  • Resources
  • Use Cases
  • Participate

Join SDxCentral and get information tailored to your particular interests everyday.

Join
Sponsored:
Citrix 3 Dell EMC 2 Linux Foundation 11 Lumina OCP OpenStack 11 Riverbed Verizon 1 VMware 6

Dell EMC, VMware Top HCI Hardware, Software Revenue Rankings

Dell EMC, VMware Top HCI Hardware, Software Revenue Rankings
Jessica Lyons Hardcastle
Jessica Lyons HardcastleApril 4, 2018
9:53 am PT

Dell EMC and VMware are the top-selling hyperconverged infrastructure (HCI) vendors by revenue, according to IDC figures for fourth quarter 2017. Both companies are Dell Technologies’ brands. Dell Technologies owns about 80 percent of VMware, which it acquired from the Dell-EMC merger in 2016.

After a very public spat between Dell EMC and Nutanix over IDC’s earlier rankings based only on companies’ branded hardware products — Dell EMC sells these systems running Nutanix and VMware HCI software, so Dell EMC got all the credit because its name is on the box — IDC’s latest quarterly tracker ranks technology providers two ways. It ranks vendors by the brand of the hyperconverged product and by the owner of the software providing the core hyperconverged capabilities.

Related Articles

How to Make Money in SDN
How to Make Money in SDN
U.S. Justice Department Investigates Huawei
U.S. Justice Department Investigates Huawei
ADVA Trials Use ONAP ONOS to Control Optical Network Assets
ADVA Trials Use ONAP, ONOS to Control Optical Network Assets
Ericsson-70-of-Service-Providers-Will-Focus-on-Cellular-IoT
Ericsson: 70% of Service Providers Will Focus on Cellular IoT
Juniper Unveils Contrail Software to Compete with Cisco, VMware
Juniper Unveils Contrail Software to Compete With Cisco, VMware

Dell EMC tops the branded-product list, and VMware is the leading HCI software provider, according to IDC.

Dell EMC was the largest HCI supplier by branded product with $346.8 million in revenue and a 27.8 percent market share. Nutanix generated $243.0 million in revenue with the second largest share of 19.5 percent. Hewlett Packard Enterprise (HPE) and Cisco were statistically tied for the quarter (meaning there’s a difference of 1 percent or less in the revenue share), with $61.6 million and $56.3 million in revenue and 4.9 percent and 4.5 percent market share, respectively.

IDC branded HCI revenue

On the basis of HCI software, systems running VMware’s hyperconverged software represented $405.1 million in fourth-quarter vendor revenue, or 32.4 percent of the total market segment. Systems running Nutanix’s software brought in $368.4 million, or 29.5 percent. Dell EMC also took the No. 3 spot for HCI based on its ScaleIO storage software with $96.5 million in revenue, or 7.7 percent. These values represent all software and hardware, regardless of how it was ultimately branded.

Overall HCI systems sales grew 69.4 percent year over year to $1.25 billion during the fourth quarter of 2017. This amounted to 34.3 percent of the total converged systems market. Full-year sales of HCI systems reached $3.7 billion in 2017, up 64.3 percent from 2016.

IDC’s quarterly report tracks the entire converged systems market and found that market value for these systems increased 9.1 percent, year-over-year, to $3.6 billion during the fourth quarter of 2017. Full-year sales exceeded $12.5 billion, a 9.4 percent increase over the previous year and the first time the market surpassed $12 billion in a calendar year.

Dell EMC Leads Converged Systems Market

The converged systems market includes three segments: certified reference systems and integrated infrastructure, integrated platforms, and HCI systems. Certified reference systems and integrated infrastructure are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic systems management software. Integrated platforms 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.

HCI 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.

Meanwhile, in Integrated Infrastructure…

The certified reference systems and integrated infrastructure market generated $1.7 billion in revenue during the fourth quarter — a 3.4 percent year-over-year decline and 47.1 percent of the total converged systems market value. Dell EMC was the largest supplier in this market segment with $735 million in sales and a 42.9 percent share. Cisco/NetApp generated $565.6 million in sales for their FlexPod product, which was the second largest share at 33 percent. HPE generated $289.3 million in sales and captured 16.9 percent market share.

Integrated platforms sales declined during this time period, with an 18.1 percent year over year drop, generating $675.5 million in revenue. This amounted to 18.6 percent of the total converged systems market value. Oracle was the top-ranked supplier of integrated platforms with $360.5 million in revenue and 53.4 percent market share.

Share:

Article Categories:

News

Jessica Lyons Hardcastle

About Jessica Lyons Hardcastle

Jessica is a Senior Editor, covering next-generation data centers, security, and software-defined storage at SDxCentral. She has worked as an editor and reporter for more than 15 years at a number of B2B publications including Environmental Leader, Energy Manager Today, Solar Novus Today and Silicon Valley Business Journal. Jessica is based in the Silicon Valley.

Have a story? Have a News Tip?

Send it to SDxCentral editors as editors@sdxcentral.com.

Leave a Reply Cancel reply

You must be logged in to post a comment.

Join SDxCentral™ to receive exclusive access.

Sign Up Now!

New Report: 2018 Future of the Converged Data Center

2018 Future of the Converged Data Center is available for free download. In this FREE Report, find out why CI and HCI are the hot new platforms in 2018, and understand their relevance to enterprise, cloud and service provider data centers.

About SDxCentral

  • About Us
  • Editorial Team
  • Editorial Calendar
  • Work With Us
  • Careers at SDxCentral
  • Support
  • Legal
  • Contact Us

Engage With us

This material may not be copied, reproduced, or modified in whole or in part for any purpose except with express written permission from an authorized representative of SDxCentral, LLC. In addition to such written permission to copy, reproduce, or modify this document in whole or part, an acknowledgement of the authors of the document and all applicable portions of the copyright notice must be clearly referenced. All Rights Reserved.

© 2012-2018 SDxCentral, LLC, All Rights Reserved. SDNCentral™, the SDNCentral logo, SDxCentral™, SDxCentral logo, SDxNews™, SDxTech™, SDx™, the SDx logo, and DemoFriday™ are trademarks of SDxCentral, LLC in the U.S. and other countries.

  • Terms of Service
  • Privacy

Please enter your Business Email to view this asset:

We are requesting you provide a valid business, education, non-profit or government email address not from free or temporary email providers or ISPs. If you feel that our filters are incorrectly disallowing your email, please contact us at support@sdxcentral.com.