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Dell/VMware and Nutanix dominate a growing hyper-converged market

As hyper-converged system revenues get set to overtake those of converged systems, Dell/VMware and Nutanix are dominating the market for combined server and storage nodes

Dell/VMware and Nutanix have continued to dominate the hyper-converged infrastructure (HCI) market in the first quarter of 2018.

Dell leads Nutanix in the market for appliances sold under their own brand, while VMware and Nutanix battle it out for the hyper-converged software products market.

That is according to analyst organisation IDC, which measures systems delivered to clients and the software they run, but not pure software revenues. It also found that HPE and Cisco registered strong growth, but fell way behind the market leaders.

According to IDC, the HCI market has leapt ahead by 76.3% in one year, driven by the performance of the four market leaders. Sales of appliances that run VMware have increased by 110%, while those driven by Nutanix have grown by 86%.

VMware has benefited from its position as market leader in virtualisation to score points in hyper-convergence, but has Nutanix snapping at its heels. The Dell EMC subsidiary posted hyper-converged systems revenue of $456m, compared with $398m for Nutanix. VMware and Nutanix took 70% of the hyper-converged market.

HPE and Cisco lag way behind, but the two suppliers did post impressive growth of 281% and 145%, respectively.

Another key point from the figures published by IDC is that hyper-converged system sales now roughly equal those of converged systems, with the former generating $1.27m in turnover, while the latter achieved $1.33m. Notably, converged systems revenue growth has come to a halt, with a small decline of 0.9% year-on-year.

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In the converged systems market, Dell also leads with a turnover of $641m, with a market share of around 48%, ahead of Cisco/NetApp on $462m and about 35% of the market.

However, Dell has seen a 1% drop in sales while NetApp’s sales have grown by 16.8%.

HPE completes the rankings, but is not showing too healthily. The firm, run by Antonio Neri, posted converged systems sales of $105m, which is an 8% share of the market but a decline of 42.4% year-on-year from the equivalent period in 2017, when it had 14% of the market.

“Others” hold a 10% market share.

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