Converged systems that combine computer servers and storage devices are supposedly the lone bright spot in those two markets, but the latest analysis from International Data Corp. says otherwise: Sales took a big tumble in the final quarter of 2016.

IDC’s Worldwide Quarterly Converged Systems Tracker for the fourth quarter shows that growth is nonexistent, with revenues falling by 1.4 percent from a year ago to $3.09 billion. Looking on the bright side, however, revenues rose by 5.8 percent to $11.3 billion for the full year, compared with a 4.6 percent decline in overall server sales.

IDC identifies four different kinds of converged systems, including “integrated infrastructure” and “certified reference systems,” though both are defined as “pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software.” The third type is “integrated platforms” that bundle integrated packaged software and customized system engineering alongside the hardware, while the fourth type is “hyperconverged systems” sold by the likes of Nutanix Inc., VMware Inc. with its VxRail and Cisco Systems Inc. with its HyperFlex.

IDC, which breaks out vendor figures for the first three categories, shows that Oracle Corp. is killing it when it comes to integrated platforms. The company’s Exadata appliances rule the roost with a commanding 49.4 percent share of the market, up from 40.2 percent a year ago. IBM Corp. and Hewlett-Packard Enterprise Co. are tied in a distant second place with 8.5 percent of the market apiece.

As far as the larger Integrated Infrastructure and Certified Reference Systems segment goes, Dell Technologies Inc. continues to dominate following its acquisition of EMC Corp. last year. The company pulled in $705.1 million in the final quarter of 2016 to command a 44.9 percent market share. Cisco Systems is in second place with $486.7 million revenues and a 31 percent share, while HPE is third with $228.9 million revenues and a 14.6 percent share of the market. Neither Dell nor HPE have much to smile about, though, as the table shows their revenues sliding by 32.4 percent and 29.4 percent, respectively.

Explaining the decline in sales, IDC Research Director Eric Sheppard said the market is currently in a state of flux. “The converged systems market is going through a period of change,” he said in a statement. “We are seeing strong growth from products with new architectures, increased levels of automation, and heavy use of software-defined technologies. This growth has been offset by reduced spending on traditional converged systems and a conscious decision by some vendors to terminate some parts of their product portfolio.”

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