[June 22, 2017]

Worldwide Converged Systems Revenue Increased 4.6% Year Over Year in the First Quarter of 2017 with Vendor Revenue at $2.67 Billion, According to IDC

According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, the worldwide converged systems market revenues increased 4.6% year over year to $2.67 billion during the first quarter of 2017 (1Q17). The market consumed 1.48 exabytes of new storage capacity during the quarter, which was up only 7.1% compared to the same period a year ago.

"Converged systems have become an important source of innovation and growth for the data center infrastructure market," said Eric Sheppard, research director, Enterprise Storage & Converged Systems. "These solutions represent a conduit for the key technologies driving much needed data center modernization and efficiencies such as flash, software-defined infrastructure and private cloud platforms."

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 first quarter of 2017, the combined integrated infrastructure and certified reference systems market generated revenues of $1.37 billion, which represented a year-over-year decrease of 3.3% and 51.3% of the total market. Dell (News - Alert) Inc. was the largest supplier of this combined market segment with $647.8 million in sales, or 47.2% share of the market segment.

* Note: Dell Inc. represents the combined revenues for Dell and EMC (News - Alert) sales for all quarters shown.

Integrated Platform sales declined 13.3% year over year during the first quarter of 2017, generating $635.9 million worth of sales. This amounted to 23.8% of the total market revenue. Oracle (News - Alert) was the top-ranked supplier of Integrated Platforms during the quarter, generating revenues of $348.7 million and capturing a 54.8% share of the market segment.

* 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 64.7% year over year during the first quarter of 2017, generating $665.1 million worth of sales. This amounted to 24.9% of the total market value.

In addition to the tables above, an interactive graphic showing worldwide revenues for the four converged systems product categories over the previous five quarters is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

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 Converged Systems Tracker, please contact Lidice Fernandez at 305-351-3057 or [email protected].

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 International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.

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View source version on businesswire.com: http://www.businesswire.com/news/home/20170622006024/en/

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