Market research firm IDC has completed analysis of the converged systems market for Q1 2017. Year-over-year, the total revenue for converged systems is on the rise, but negative results in integrated platform and integrated infrastructure systems were bolstered by enormous growth in the hyperconverged systems market.
Hyperconverged systems sales grew by an astonishing 64.7% compared to Q1 2016. The other two publicized categories, integrated infrastructure and integrated platforms, decreased by 3% and 13.3%, respectively.
The hyperconverged systems market showed sales of $665 million, representing 24% of the total converged systems market. Integrated platforms garnered $635.9 million and 23% of the market, and the rest went to integrated infrastructure and certified reference systems, with revenues surpassing $1.372 billion in the first quarter of this year.
Dell remains the leader in market share in the integrated infrastructure category, maintaining a 47% market share and $647.8 million in Q1 revenue. Dell still has a strong lead over the next contender, Cisco/NetApp, which has 28.8% of the market share. However, Cisco/NetApp was the only integrated infrastructure vendor that showed positive year-over-year revenue growth, up 26.1% over the first quarter of 2016.
Oracle also leads the pack by a large margin in the integrated platform category, with 54.8% of the market share, an increase over last year’s 51.8%. However, since the total market decreased by 13.3%, Oracle picked up a larger share of the market while still suffering an 8.1% decrease in revenues from last year, clocking in at $348.7 million for the first quarter. The runner-up, HPE, has only a 9.7% market share, or $61.7 million.
IDC does not publish vendor statistics for the hyperconverged market, but a breakdown conducted by an analyst at the Stifel investment firm and published by The Register shows that Dell/EMC has overtaken Nutanix by a small margin to become the leading provider of hyperconverged systems. For the first quarter, Dell/EMC held a 24% share of the hyperconverged systems market, with $159.4 million in revenues. Nutanix followed closely with $155.1 million in revenues, representing 23.3% of the total market.
In March, IDC reported that the worldwide market for converged systems had fallen by 1.4% year-over-year, from the fourth quarter of 2015 to Q4 2016. Q1 results were positive overall, with hyperconverged systems bringing the total market back in the positive range. Analysts predict that the market for hyperconverged systems could reach $2.4 billion by the end of this year, and continue growing to $3.9 billion by 2019.