Worldwide Converged Systems Revenue Increased 10.8% Year Over Year in the Third Quarter of 2017 with Vendor Revenue Reaching $2.99 Billion, According to IDC

FRAMINGHAM, Mass. — (BUSINESS WIRE) — December 21, 2017 — According to the International Data Corporation ( IDC) Worldwide Quarterly Converged Systems Tracker, worldwide converged systems market revenue increased 10.8% year over year to $2.99 billion during the third quarter of 2017 (3Q17). The market consumed 1.96 exabytes of new storage capacity during the quarter, which was up 30% compared to the same period a year ago.

"The converged systems market expanded on multiple fronts, most notably within hyperconverged solutions," said Eric Sheppard, research director, Enterprise Storage & Converged Systems. "While hyperconvergence is not the sole source of market growth, it has undeniably driven an expansion of this market into new environments at a very rapid pace."

Converged Systems Segments

IDC's converged systems market view offers three segments: certified reference systems & integrated infrastructure, integrated platforms, and hyperconverged systems. Certified reference systems & integrated infrastructure 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 third quarter of 2017, the certified reference systems & integrated infrastructure segment generated revenues of $1.44 billion, which represents a year-over-year increase of 1.5% and 48.3% of the total converged systems market value. Dell Inc. was the largest supplier in this market segment, with $697.2 million in sales and a 48.3% share. Cisco/NetApp generated $485.5 million in sales, up 56.4% (Y/Y) and representing the second largest share of 33.6%.

 

Top 3 Companies, Worldwide Certified Reference Systems & Integrated Infrastructure, Q3 2017
(Revenues are in Millions)

Company     3Q17
Revenue
   

3Q17
Market
Share

   

3Q16
Revenue

   

3Q16
Market
Share

   

3Q17/3Q16
Revenue
Growth

1. Dell Inc.*     $697.2     48.3%     $729.1     51.2%     -4.4%
2. Cisco/NetApp     $485.5     33.6%     $310.4     21.8%     56.4%
3. HPE     $149.3     10.3%     $257.2     18.1%     -41.9%
All Others     $112.9     7.8%     $127.7     9.0%     -11.6%
Total     $1,444.9     100%     $1,424.3     100%     1.5%
Source: IDC Worldwide Quarterly Converged Systems Tracker, December 21, 2017
 

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