They're buying into the hype: Hyperconverged system kit sales hit $4.15bn for Q4 2018

Dell/VMware and Nutanix dominate, HPE best of the rest

Number crunchers at IDC told the world this morning that international converged systems market revenue grew 14.8 per cent year-on-year to reach $4.15bn in the final quarter of 2018.

HPE and other hyperconverged also-rans found themselves once again grabbing at the tail end of a burgeoning converged-slash-hyperconverged market that is – yet again – completely and utterly dominated by Dell's EMC and VMware businesses, with a healthy slice being eaten by HCI specialist Nutanix.

Hyperconverged concept drawing

Joy to the vendors, HCI's day has come. And converged ... becomes less... of a thing – IDC


Hyperconverged infrastructure (HCI) systems are now dominating this market, with Dell/VMware and Nutanix calling the shots.

The converged systems market is divided into three segments by IDC: certified reference systems and integrated infrastructure, integrated platforms, and hyperconverged systems.

In the fourth 2018 quarter:

  • Hyperconverged systems grew 57.2 per cent year-on-year, with $1.9bn in revenue – amounting to 46.5 per cent of the total market.
  • The certified reference systems and integrated infrastructure market generated $1.6bn in revenue – a year-on-year decline of 6.4 per cent – comprising 38.6 per cent of total converged systems revenue.
  • Integrated platforms sales declined 8.4 per cent year-on-yearto $619m (14.9 per cent of the market).

Big-ticket CI boxes are being overtaken by low and mid-ticket HCI systems.

An IDC chart shows a five-quarter overview of the market:


Despite the year-on-year decline in certified reference systems, that market sector has grown for three quarters in a row, although HCI has grown more rapidly.

The top three suppliers in the hyperconverged market were Dell, Nutanix and HPE.


Dell outgrew the market, as did HPE, but Nutanix fell back. The effect of this was reflected in Nutanix's latest quarterly numbers.

As considerable reselling goes on – with, for example, Dell reselling Nutanix software – IDC produces a separate table of revenues for the HCI software owner:


By this metric, VMware is top, strongly outgrowing the market, with Nutanix second.

In general HCI systems are growing strongly but they are not killing off converged systems – yet. ®

Other stories you might like

  • Dell unveils new XPS 13 devices with Alder Lake CPUs
    Best hedge against a slowing PC market? Take some design tips from Apple

    Dell has pulled the lid off the latest pair of laptops in its XPS 13 line, in the hopes the new designs, refreshed internals, and an unmistakably Apple-like aesthetic of its 2-in-1 approach can give them a boost in a sputtering PC market. 

    Both new machines are total redesigns, which is in line with Dell's plans to revamp its XPS series. Dell users considering an upgrade will want to take note, especially those interested in the XPS 13 2-in-1: There is quite a bit of difference, for both enterprise and consumer folks. 

    The XPS 13 maintains its form factor – for the most part – but gets a new smooth aluminum chassis that makes it look more like a MacBook Air than ever. Not that that's necessarily a bad thing: the new design is reportedly lighter and thinner, too. 

    Continue reading
  • HPE Greenlake to power Taeknizon private cloud expansion in UAE
    Isn't this the definition of a middle man?

    Why build a cloud datacenter yourself, when you can rent one from Hewlett Packard Enterprise? It may seem unorthodox, but That’s exactly the approach Singapore-based private cloud provider Taeknizon is using to extend its private cloud offering to the United Arab Emirates (UAE).

    Founded in 2012, Taeknizon offers a menagerie of services ranging from IoT, robotics, and AI to colocation and private cloud services, primarily in the Middle East and Asia. The company’s latest expansion in the UAE will see it lean on HPE GreenLake’s anything-as-a-service (XaaS) platform to meet growing demand from small-to-midsize enterprises for cloud services in the region.

    “Today, 94% of companies operating in the UAE are SMEs," Ahmad AlKhallafi, UAE managing director at HPE, said in a statement. "Taeknizon’s as-a-service model caters to the requirements of SMEs and aligns with our vision to empower youth and the local startup community.”

    Continue reading
  • PC shipments sink amid steady waves of supply chain, war disruptions
    320 million units forecast, still well above pre-pandemic, but boom is over for now

    Orders for PCs are forecast to shrink in 2022 as consumers confront rising inflation, the war in Ukraine, and lockdowns in parts of the world critical to the supply chain, all of which continue.

    So says IDC, which forecast shipments to decline 8.2 percent year-on-year to 321.2 million units during this calendar year. This follows three straight years of growth, the last of which saw units shipped rise to 348.8 million.

    Things might be taking a turn for the worse but they are far from disastrous for an industry revived by the pandemic when PCs became the center of many people's universe. Shipments are still forecast to come in well above the pre-pandemic norms; 267 million units were shipped in 2019.

    Continue reading

Biting the hand that feeds IT © 1998–2022