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December 23, 2016

Global converged systems revenue increases 1.7% to $2.6bn in Q3

IDC said the market consumed 1.4 exabytes of new storage capacity during the quarter.

By CBR Staff Writer

The global converged systems market increased revenue 1.7% year over year to $2.6bn in the third quarter of 2016.

Research firm IDC said that 1.4 exabytes of new storage capacity was consumed by the market during the quarter, which was up a moderate 12.5% compared to the same period last year.

IDC research director for enterprise storage & converged systems Eric Sheppard said: “The converged systems ecosystem is itself converging at the supplier and product level.

“On the product side, IDC finds the strongest growth coming from offerings that have robust data services, high levels of automation, and strong lifecycle management capabilities.”

During Q3, the combined integrated infrastructure and certified reference systems market generated $1.36bn of revenues, which represented a year-over-year decline of 11.4% and 52.2% of the entire market.

IDC said a large part of this decrease can be attributed to the discontinuation of the VSPEX certified reference systems.

The combined market segment was led by Dell Technologies with $670.9m in sales, or 49.4% share of the market segment.

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Cisco/NetApp generated $310.4m in sales followed by HPE with $247.8m of revenue.

Integrated platform sales decreased 9.7% year over year during Q3, generating $671.8m worth of sales, representing 25.8% of the total revenue.

Oracle stood at top place of integrated platforms during the quarter, generating revenues of $307.9m with 45.8% market share. HPE generated $71.5m of revenue with 10.6% market share.

Hyperconverged sales increased 104.3% year over year during Q3, generating $570.5m worth of sales. It amounted to 22% of the total market value.

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