UPDATED 22:32 EDT / JUNE 25 2019

INFRA

Converged infrastructure systems sales grow 19%

Enterprises are showing no letup in their demand for converged infrastructure systems, if International Data Corp.’s latest numbers are any indication.

In IDC’s Worldwide Quarterly Converged Systems Tracker published today, revenue from the market increased by 19.3% year over year to $3.75 billion during the first quarter of 2019. Once again, Dell Technologies Inc. led the way with the largest market share.

Converged infrastructure refers to data management systems that package computing, networking, servers, storage and virtualization tools within a single appliance.

Those systems are further broken down into three distinct categories. They include “Hyperconverged Systems,” which tightly integrate compute, storage and virtualization resources into a single system that’s managed via a common tool set; “Certified Reference Systems and Infrastructure,” which come prepackaged with servers, disk storage, networking gear and the necessary management software; and “Integrated Platforms,” which add extra software and customized systems engineering to better run things such as databases, application development software and testing tools.

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Of these categories, hyperconverged systems are the biggest growth drivers and revenue earners, IDC said. In the first quarter, total revenue topped $1.8 billion, growing at an impressive rate of 47% from the same period a year ago.

“Hyperconverged infrastructure remains the primary growth driver in the converged systems market,” Sebastian Lagana, research manager for infrastructure platforms and technologies at IDC, said in a statement. “Reduced operating complexity, ease of deployment, and excellent fit within hybrid cloud environments continue to drive HCI adoption across a broad range of customers and workloads.”

The Certified Reference Systems and Infrastructure segment is worth almost as much, with revenue there totaling $1.4 billion for the quarter, growing at a rate of 9%. Integrated Platforms sales hit $556 million, down 13.3% from a year ago.

Analyst Patrick Moorhead of Moor Insights & Strategy said he wasn’t surprised to see such rapid growth in the market:

“As enterprise complexity increases with cloud projects, IT is looking for ways to simplify everything,” he told SiliconANGLE. “Converged infrastructure helps simplify purchasing, installing, and managing infrastructure.”

Dell did especially well in the branded hyperconverged systems hardware segment, growing its market share from 28.6% in the fourth quarter of 2018 to 32.2% now. Nutanix Inc. and Hewlett-Packard Enterprise Co. came in second and third, respectively:

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IDC also ranks the software providers that deliver the core hyperconverged capabilities of such platforms, and its latest graph shows that VMware Inc. continues to lead the way, with Nutanix and HPE once again bringing up the rear:

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Photo: ColossusCloud/Pixabay

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