While overall converged systems revenue increased 10.8 percent year-over-year to $2.99 billion, once again the HCI segment grew the fastest. Hyperconverged sales increased 68 percent compared to last year, generating $1 billion in revenue, or one-third of the overall converged systems sales.
Dell EMC was the largest supplier in the HCI segment with $306.8 million in revenue and a 30.6 percent share. The company also extended its lead over frenemy Nutanix, which made $207.4 million from its HCI sales, representing the second largest market share (20.7 percent).
Dell EMC’s HCI systems growth was up 158.3 percent year-over-year. Nutanix saw a 61.1 percent increase for the same period.
Cisco and Hewlett Packard Enterprise (HPE) slotted into the No. 3 and No. 4 ranking, respectively.
Cisco partners with software company Springpath on its HCI system. In August, Cisco announced plans to buy the startup for $320 million, bringing the HCI software stack in-house.
“We do see a consolidation of sorts where players are pulling ahead,” IDC analyst Eric Sheppard told SDxCentral.“Go back a year or two ago where there was a very long tail of [HCI] technology suppliers. Some have been acquired and we’re seeing players start to pull ahead. We’re seeing the large, traditional server players heavily invested in hyperconverged, and they certainly weren’t two years ago.”
IDC’s Worldwide Quarterly Converged Systems Tracker covers three segments: certified reference systems and integrated infrastructure; integrated platforms; and hyperconverged 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.
Hyperconverged systems combine core storage and compute functionality into a single, highly virtualized platform. A key characteristic of HCI that differentiates these products from other integrated systems is their scale-out architecture and their ability to provide all compute and storage functions through commodity hardware.
HCI Is Fastest Growing Segment
Companies’ awareness about HCI and comfort level with the technology is at an “all-time high,” Sheppard said.
“The most fundamental driver is the operational simplicity,” Sheppard explained. “By moving toward software-defined, eliminating a storage-area network or virtualizing it, you still get the benefits of mobility and networking associated with SANs, but you do it without building out several silos of infrastructure. You end up with this truly converged, consolidated infrastructure.”
Certified reference systems and integrated infrastructure also grew during the third quarter of 2017. This segment generated revenues of $1.44 billion, a 1.5 percent year-over-year increase, and accounted for 48.3 percent of the total converged systems market value.
Dell EMC also led this segment, with $697.2 million in sales and a 48.3 percent share. Cisco and NetApp generated $485.5 million in sales from their FlexPod product, up 56.4 percent and representing the second largest share at 33.6 percent.
Meanwhile, integrated platforms sales dropped 19.8 percent during the third quarter, bringing in $542.7 million worth of sales. This amounted to 18.2 percent of the total converged systems market value.
Oracle was the top-ranked supplier of integrated platforms during the quarter with revenues of $240.4 million and a 45.8 percent share of the market segment.
In an email, Bob Wambach, VP of marketing, Dell EMC’s converged platforms and solutions division, said the company’s converged systems help customers simplify their IT infrastructure. “This is the core tenet of our converged and hyper-converged solutions portfolio,” Wambach wrote. “There’s no silver bullet because customers’ needs, environments, and preferences vary. Our customers are telling us they choose Dell EMC because we have market-leading technologies, exceptional global service, and we offer the best entry into transformational IT infrastructure.”