By using this site, you agree to the IDC Privacy Policy

23 Mar 2017

Worldwide Converged Systems Revenue Decreased 1.4% Year Over Year in the Fourth Quarter of 2016 with Vendor Revenue at $3.09 Billion, According to IDC

FRAMINGHAM, Mass., March 23, 2017 – According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, the worldwide converged systems market revenues decreased 1.4% year over year to $3.09 billion during the fourth quarter of 2016 (4Q16). The market consumed 1.6 exabytes of new storage capacity during the quarter, which was up a moderate 4.0% compared to the same period a year ago. For the full year 2016, worldwide converged systems market revenues increased 5.8% to $11.3 billion when compared to 2015.

"The converged systems market is going through a period of change," said Eric Sheppard, research director, Enterprise Storage & Converged Systems. "We are seeing strong growth from products with new architectures, increased levels of automation, and heavy use of software-defined technologies. This growth has been offset by reduced spending on traditional converged systems and a conscious decision by some vendors to terminate some parts of their product portfolio."

Converged Systems Segments

IDC's converged systems market view offers four segments: integrated infrastructure, certified reference systems, integrated platforms, and hyperconverged systems. Integrated infrastructure and certified reference systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software. Integrated Platforms are integrated systems that are sold with additional pre-integrated packaged software and customized system engineering optimized to enable such functions as application development software, databases, testing, and integration tools. 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 scale-out architecture and their ability to provide all compute and storage functions through the same x86 server-based resources.

During the fourth quarter of 2016, the combined integrated infrastructure and certified reference systems market generated revenues of $1.57 billion, which represented a year-over-year decrease of 15.7% and 50.8% of the total market. Dell Technologies was the largest supplier of this combined market segment with $705.1 million in sales, or 44.9% share of the market segment.

Top 3 Vendors, Worldwide Integrated Infrastructure and Certified Reference Systems, Fourth Quarter of 2016 (Revenues are in Millions)

Vendor

4Q16 Revenue

4Q16 Market Share

4Q15 Revenue

4Q15 Market Share

4Q16 /4Q15 Revenue Growth

1. Dell Technologies*

$705.1

44.9%

$1,043.4

56.0%

-32.4%

2. Cisco/NetApp

$486.7

31.0%

$336.7

18.1%

44.5%

3. HPE

$228.9

14.6%

$324.1

17.4%

-29.4%

All Others

$149.7

9.5%

$158.6

8.5%

-5.6%

Total

$1,570.3

100%

1,862.8

100%

-15.7%

Source: IDC Worldwide Quarterly Converged Systems Tracker, March 23, 2017

* Note: Dell Technologies represents the combined revenues for Dell and EMC sales for all quarters shown.



Integrated Platform sales declined 8.6% year over year during the fourth quarter of 2016, generating $823.5 million worth of sales. This amounted to 26.6% of the total market revenue. Oracle was the top-ranked supplier of Integrated Platforms during the quarter, generating revenues of $406.9 million and capturing a 49.4% share of the market segment.

Top 3 Vendors, Worldwide Integrated Platforms, Fourth Quarter of 2016 (Revenues are in Millions)

Vendor

4Q16 Revenue

4Q16 Market Share

4Q15 Revenue

4Q15 Market Share

4Q16 /4Q15 Revenue Growth

1. Oracle

$406.9

49.4%

$362.5

40.2%

12.2%

T2* IBM

$70.4

8.5%

$116.7

12.9%

-39.7%

T2* HPE

$70.1

8.5%

$74.8

8.3%

-6.3%

All Others

$276.1

33.5%

$347.3

38.5%

-20.5%

Total

$823.5

100%

901.3

100%

-8.6%

Source: IDC Worldwide Quarterly Converged Systems Tracker, March 23, 2017

* Note: IDC declares a statistical tie in the worldwide converged systems market when there is a difference of one percent or less in the vendor revenue shares among two or more vendors.

Hyperconverged sales grew 87.3% year over year during the fourth quarter of 2016, generating $697.4 million worth of sales. This amounted to 22.6% of the total market value. The hyperconverged system market surpassed $2.2 billion in global revenue during the full calendar year (2016), which was 110% higher than 2015.



This chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic are available by clicking here.

Taxonomy Notes:

IDC defines converged and hyperconverged systems as pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software. Systems not sold with all four of these components are not counted within this tracker. Specific to management software, IDC includes embedded or integrated management and control software optimized for the auto discovery, provisioning and pooling of physical and virtual compute, storage and networking resources shipped as part of the core, standard integrated system. Numbers in this press release may not sum due to rounding.

For more information about IDC's Worldwide Quarterly Integrated Infrastructure and Platforms Tracker, please contact Lidice Fernandez at 305-351-3057 or lfernandez@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of IDG, the world's leading technology media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

All product and company names may be trademarks or registered trademarks of their respective holders.

Coverage
Contact
For more information, contact:

Michael Shirer
press@idc.com
508-935-4200

David Laing
dlaing@idc.com
508-935-4344

Eric Sheppard
esheppard@idc.com
508-988-7925