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New players & VC funding boost hyperconverged system revenue

Vendor expansion has intensified the industry.

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Sales of hyperconverged systems in 2015 will generate $807 million in global revenue, 116.2% more than in 2014 ($373 million).

According to IDC, growth was due to an increase in market awareness leveraged with product announcements, new competitors, and venture capital funding.

In 2014 alone, over 20 companies had entered or intended to enter the hyperconverged systems market.

By eliminating complexity, expenses, and latency often associated with SAN-based storage solutions, hyperconverged systems succeeded in midsized environments and virtual desktop infrastructure (VDI) projects.

Last year, the number of general business applications running on hyperconverged systems increased, denoting a new trend within the industry. Although, VDI projects remained the most common workload.

The research also revealed that as vendors expanded geographically, it contributed to the industry’s intensification.

Jed Scaramella, Research Director for servers and data centres at IDC said: "Shifting business dynamics are quickening the pace of IT evolution, not only causing disruption within the core markets but also presenting new market opportunities for those vendors that are able to innovate.

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"While still in the nascent stages of market development, IDC believes hyperconverged systems will achieve significant market penetration in the next 18 months."

Eric Sheppard, Research Director at Storage Systems and Storage Software said: "Hyperconverged systems are helping to deliver many of the proven benefits of integrated systems, including reduced complexity, risk, and inefficiencies, into new environments with targeted infrastructure needs or smaller budgets. As such, hyperconverged systems represent a market expansion opportunity for infrastructure suppliers and their partners."

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