HPE gains ground in HCI market as Dell and Nutanix suffer

Global sales edged up one per cent in Q2

Hewlett Packard Enterprise saw its hyperconverged revenue rocket by over 50 per cent in the second quarter of this year, bringing it closer to market leaders Dell and Nutanix.

HPE's sales climbed 50.3 per cent year up to $130m, giving it seven per cent of the global market.

Dell and Nutanix saw their revenue drop 2.6 per cent and two per cent respectively.

Dell's market share remains double that of second place Nutanix.

Revenue growth across the market was 1.1 per cent year on year to $1.6bn.

Paul Maguranis, senior analyst at IDC, said: "The overall converged systems market showed a decline during a difficult second quarter as broader weakness in enterprise buying across server and storage also impacted HCI.

"The certified reference systems & integrated infrastructure and integrated platforms segments both declined this quarter while the hyper converged systems segment was able to witness modest growth despite headwinds in the market.

"This growth was mostly due to strong HCI performance in Asia/Pacific, especially in China and Japan."

VMware retains its position as the dominant hyperconvergence vendor in terms of software, growing its revenue three per cent year on year to $722.9m.

Its growth was however beaten by Nutanix, which saw sales climb 6.2 per cent to $554.1m.

Worldwide Converged Systems Market Declines 4.5% Year Over Year During the Second Quarter of 2020, According to IDC

September 17, 2020 08:00 PM Eastern Daylight Time

FRAMINGHAM, Mass.--(BUSINESS WIRE)--According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, worldwide converged systems market revenue decreased 4.5% year over year to $3.9 billion during the second quarter of 2020 (2Q20).

According to the IDC Worldwide Quarterly Converged Systems Tracker, worldwide converged systems market revenue decreased 4.5% year over year to $3.9 billion during Q2 2020.

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"The overall converged systems market showed a decline during a difficult second quarter as broader weakness in enterprise buying across server and storage also impacted HCI," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "The certified reference systems & integrated infrastructure and integrated platforms segments both declined this quarter while the hyperconverged systems segment was able to witness modest growth despite headwinds in the market. This growth was mostly due to strong HCI performance in Asia/Pacific, especially in China and Japan."

Converged Systems Segments

IDC's converged systems market view offers three segments: certified reference systems & integrated infrastructure, integrated platforms, and hyperconverged systems. The certified reference systems & integrated infrastructure market generated just over $1.5 billion in revenue during the second quarter, which represents a decline of 7.6% year over year and accounts for 39.1% of all converged systems revenue. Integrated platforms revenues declined 13.1% year over year to $544 million in 2Q20. This amounted to 13.8% of the total converged systems market revenue. Revenue from hyperconverged systems sales grew 1.1% year over year during the second quarter, totaling nearly $1.9 billion. This amounted to 47.1% of the total converged systems market.

A graphic illustrating worldwide market share for the three converged systems market segments over the previous five quarters is available by viewing this press release on IDC.com.

IDC offers two ways to rank technology suppliers within the hyperconverged systems market: by the brand of the hyperconverged solution or by the owner of the software providing the core hyperconverged capabilities. Rankings based on a branded view of the market can be found in the first table of this press release and rankings based on the owner of the hyperconverged software can be found in the second table within this press release. Both tables include all the same software and hardware, summing to the same market size.

As it relates to the branded view of the hyperconverged systems market, Dell Technologies was the largest supplier with $519.6 million in revenue and a 27.9% share. Nutanix generated $253.5 million in branded hardware revenue, representing 13.6% of the total HCI market during the quarter. In third was Hewlett Packard Enterprise with $130.0 million in revenue, which represents a 7.0% share of the market.

Table Notes:

a Dell Technologies represents the combined revenues for Dell and EMC sales for all quarters shown.

In terms of the HCI systems' software brand, new systems running VMware hyperconverged software delivered revenue of $722.9 million in 2Q20, or 38.9% of the total market. Systems running Nutanix hyperconverged software had $554.1 million in 2Q20 vendor revenue or 29.8% of the total market. Both amounts represent the value of all HCI hardware, HCI software, and system infrastructure software sold, regardless of how it was branded at the hardware level. As hardware sales are a major factor in these data, the chart should not be assumed to solely reflect, or completely align with, the respective companies' overall software performance.