Hyperconverged market flying as Dell doubles sales

Dell was the highest-ranking HCI supplier, with a 29 per cent share of the market

Dell has increased its dominance in the hyperconverged space, doubling its revenue in a market that saw sales of $1.5bn (£1.14bn) in Q2.

The worldwide converged systems market grew 10 per cent year on year in the second quarter of 2018, generating revenues of $3.5bn, according to a recent report by IDC.

The hyperconverged infrastructure (HCI) space, meanwhile, saw a revenue increase of 78 per cent year on year to $1.5bn in sales. This represented 41 per cent of the total converged systems market space.

Dell was the largest HCI supplier, seeing its sales jump 95.2 per cent to $418.7m.

Sebastian Lagana, infrastructure platforms and technologies research manager at IDC, said: "Datacentre infrastructure convergence remains an important investment driver for companies around the world.

"HCI solutions helped to drive second-quarter market expansion thanks, in part, to their ability to reduce infrastructure complexity, promote consolidation, and allow IT teams to support an organisation's business objectives."

The analyst defines converged systems as pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software.

IDC separates the total converged systems market into three segments: certified reference systems and integrated infrastructure, integrated platforms, and hyperconverged systems (HCI).

Nutanix saw a year-on-year decrease of its HCI market share, but still ranked second in the segment, holding 19 per cent of the HCI space, with Cisco and HPE coming joint third.

The certified reference and integrated infrastructure market saw a year-on-year decline of 14 per cent, generating $1.3bn in the second quarter. This represents 38 per cent of total converged systems revenue.

Dell also led the charge in this market segment, with $640m in sales, representing a 47.5 per cent share of the space. This was followed by Cisco/NetApp holding the second-largest share of this segment space and HPE trailing in third.

Integrated platform sales declined 12.5 per cent year on year, with revenues of $729.4m. Oracle was the top-ranking supplier in this segment, capturing 60 per cent of this market space and seeing profits of $441m.

Top 3 Companies, Worldwide Hyperconverged Systems, Q2 2018 (Revenues are in US$ millions)
Company
2Q18

Revenue
2Q18 Market Share
2Q17

Revenue
2Q17 Market Share
2Q18/2Q17 Revenue Growth
1. Dell Inc.
$418.7
28.8%
$214.5
26.3%
95.2%
2. Nutanix
$275.3
18.9%
$185.4
22.7%
48.5%
T3. Cisco
$77.7
5.3%
$53.5
6.6%
45.2%
T3. HPE
$72.0
4.9%
$32.8
4.0%
119.4%
All Others
$611.2
42.0%
$330.4
40.5%
85.0%
Total
$1,454.8
100%
$816.6
100%
78.1%
Source: IDC Worldwide Quarterly Converged Systems Tracker