Hyperconverged systems revenues reached $1.8 billion in Q2

Systems running VMware hyperconverged software represented 38% of the total HCI market in the second quarter of 2019, according to IDC.
Written by Asha Barbaschow, Contributor

Global converged systems market revenue increased almost 11% year over year to just shy of $4 billion during the second quarter of 2019, the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker has revealed.

The tracker monitors the global revenue of traditional converged and hyperconverged infrastructure solutions.

See also: What is hyperconverged infrastructure, and why should you care? (TechRepublic)

It breaks its quarterly tracker into three segments: Certified reference systems and integrated infrastructure, integrated platforms, and hyperconverged systems.


Worldwide converged systems market by product category, Q2 2019

Image: IDC

Revenues from hyperconverged systems sales grew 23.7% year over year during 2Q19, generating $1.8 billion-worth of sales.

IDC said this amounted to 46.6% of the total converged systems market.

Once again Dell Technologies was the front runner with 29% of total market share, generating just over $533 million in revenue for the three-month period. Revenue growth, when compared to the same period in 2018, was just over 27%.

Behind Dell was Nutanix, representing around 14% of the global market and revenue of $259 million. Nutanix's revenue was 6% less than in 2Q18, generating just over $275 million last year.

Cisco meanwhile experienced revenue growth of 46.8% -- boasting more than 6% of total market share and producing revenue of $114 million during the quarter.

When viewing the statistics from the software ownership view, systems running VMware hyperconverged software represented $694 million in total 2Q19 vendor revenue -- 38% of the total market. This was up almost 40% year over year.

Systems running Nutanix hyperconverged software represented $522 million -- 28.6% of the total market -- and Cisco upped its revenue by nearly 47% to $114 million, representing a little over 6% of total market share.

"The value proposition of converged infrastructure solutions has evolved to align with the needs of a hybrid cloud world," IDC research vice president, Infrastructure Platforms and Technologies Eric Sheppard said.

"Modern converged solutions are driving growth because they allow organisations to leverage standardised, software-defined, and highly automated data centre infrastructure that is increasingly the on-premises backbone of a seamless multi-cloud world."

See also: Multicloud: A cheat sheet (TechRepublic)

IDC's statistics revealed the certified reference systems and integrated infrastructure market generated nearly $1.5 billion in revenue during the second quarter -- 37.5% of total converged systems revenue.

Meanwhile, integrated platforms sales declined 14.4% from the second quarter of 2018, with $626 million worth of sales generated in the three month period. This amounted to 16% of the total converged systems market revenue.


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