Converged systems market up 6.2%

Market generates $2.5bn revenue during Q3 2015, according to IDC

Tags: Cisco Systems IncorporatedIDC Middle East and AfricaNetAppVCE Company LLC (www.vce.com/)
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Converged systems market up 6.2% The market generated 1,261 petabytes of new storage capacity shipments
By  Tom Paye Published  December 31, 2015

According to the IDC Worldwide Quarterly Converged Systems Tracker, the worldwide converged systems market increased revenue 6.2% year over year to $2.5 billion during the third quarter of 2015 (3Q15).

The market generated 1,261 petabytes of new storage capacity shipments during the quarter, which was up 34.8% compared to the same period a year ago.

"The overall market is showing growth but that growth is primarily driven by very rapid growth in the hyperconverged systems market," said Kevin M. Permenter, senior research analyst, Enterprise Servers, IDC. "Smaller and more flexible systems, like the ones found in the hyperconverged space, were well positioned to take advantage of the burgeoning mid-market customer segment this quarter."

IDC distinguishes between three market segments: Integrated Systems, Certified Reference Systems, and Hyperconverged Systems.

Integrated systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software.

Certified reference systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software. Certified reference systems, however, are designed with systems from multiple technology vendors.

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 ability to provide all compute and storage functions through the same server-based resources.

During the third quarter of 2015, the Integrated Systems market generated revenues of $1,591.35 million, which represented a year-over-year decline of -1.41% and 62.3% of the total market value. VCE was the largest supplier of Integrated Systems with $442.82 million in sales, or 27.8% share of the market segment.

Certified Reference Systems sales grew 0.31% year over year during the third quarter of 2015, generating more than $680 million worth of sales. This amounted to 26.8% of the total market value. Cisco/NetApp was the top-ranked supplier of Certified Reference Systems in the quarter, generating revenues of $308.96 million and capturing a 45.18% share of the market segment.

Hyperconverged sales grew 155.3% year over year during the third quarter of 2015, generating more than $278.8 million worth of sales. This amounted to 10.9% of the total market value.

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