Worldwide Converged Systems Revenue Increased 6.2% Year Over Year in the Second Quarter of 2017 with Vendor Revenue at $3.15 Billion, According to IDC

FRAMINGHAM, Mass. — (BUSINESS WIRE) — September 26, 2017 — According to the International Data Corporation ( IDC) Worldwide Quarterly Converged Systems Tracker, worldwide converged systems vendor revenues increased 6.2% year over year to $3.15 billion during the second quarter of 2017 (2Q17). The market consumed 1.78 exabytes of new storage capacity during the quarter, which was up 5.6% compared to the same period a year ago.

"The converged systems market is benefiting from an expansion into new environments and a new set of customers," said Eric Sheppard, research director, Enterprise Storage & Converged Systems. "This expansion is driven by products that are offering new levels of automation, tighter integration between technologies ,and, in many cases, software-defined solutions based on scale-out architectures."

Converged Systems Segments
IDC's converged systems market view recognizes 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 second quarter of 2017, the combined integrated infrastructure and certified reference systems market generated revenues of $1.56 billion, which represented a year-over-year decrease of 1.5% and 49.6% of the total market. Dell Inc. was the largest supplier of this combined market segment with $758 million in sales, or 48.5% share of the market segment.

Top 3 Companies, Worldwide Integrated Infrastructure and Certified Reference Systems, Second Quarter of 2017 (Revenues are in Millions)

Company

   

2Q17 Revenue

    2Q17 Market Share     2Q16 Revenue     2Q16 Market Share     2Q17 /2Q16 Revenue Growth
1. Dell Inc.*     $758.2     48.5%     $730.4     46.0%    

3.8%

2. Cisco/NetApp     $516.1     33.0%     $429.5     27.1%    

20.1%

3. HPE     $184.7     11.8%     $290.7     18.3%     -36.5
All Others     $104.1     6.7%     $135.6     8.6%     -23.3%
Total     $1563.0     100%     $1586.3     100%     -1.5%
Source: IDC Worldwide Quarterly Converged Systems Tracker, September 26, 2017

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

Integrated Platform sales declined 4.9% year over year during the second quarter of 2017, generating $822.3 million worth of sales. This amounted to 26.1% of the total market revenue. Oracle was the top-ranked supplier of Integrated Platforms during the quarter, generating revenues of $510 million and capturing a 62.1% share of the market segment.

Top 3 Companies, Worldwide Integrated Platforms, Second Quarter of 2017 (Revenues are in Millions)

Company

    2Q17 Revenue     2Q17

Market Share

    2Q16 Revenue     2Q16

Market Share

    2Q17 /2Q16 Revenue Growth
1. Oracle     $510.6     62.1%     $483.1     55.8%     5.7%
2. HPE     $65.4     8.0%     $84.7     9.8%     -22.7%
3. IBM     $40.6     4.9%     $44.4     5.1%     -8.6%
All Others     $205.7     25.0%     $252.9     29.2%     -18.7%
Total     $822.3     100%     $865.1     100%     -4.9%
Source: IDC Worldwide Quarterly Converged Systems Tracker, September 26, 2017

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