Worldwide Converged Systems Revenue Increases 8.5% Year Over Year in the Fourth Quarter of 2015, Surpassing $3.1 Billion in Value, According to IDC

FRAMINGHAM, Mass.--(BUSINESS WIRE)--According to the International Data Corporation (IDC) Worldwide Quarterly Converged Systems Tracker, the worldwide converged systems market increased revenue 8.5% year over year to $3.1 billion during the fourth quarter of 2015 (4Q15). The market generated 1,547 petabytes of new storage capacity shipments during the quarter, which was up 26.9% compared to the same period a year ago. For the full year 2015, worldwide converged systems market revenue increased 8.3% to $10.6 billion when compared to 2014.

"We are seeing some of the market demand move into deals with lower average selling prices (ASPs), which is driving a shift from traditional converged systems to hyperconverged systems," said Kevin M. Permenter, senior research analyst, Enterprise Servers. "Right now, most of the growth is coming from the mid-market, which is heavily skewed toward hyperconverged systems. We are expecting to see this trend continue into the near term."

Converged Systems Segments

IDC distinguishes between three market segments: Integrated Systems, Certified Reference Systems, and Hyperconverged Systems.

• Integrated Systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software.
• Like integrated systems, Certified Reference Systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software. Certified reference systems, however, are designed with systems from multiple technology vendors.
• 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 ability to provide all compute and storage functions through the same server-based resources.

During the fourth quarter of 2015, the Integrated Systems market generated revenues of more than $2.0 billion, which represented a year-over-year increase of 6.7% and 65.6% of the total market value. VCE was the largest supplier of Integrated Systems with $743 million in sales, or 36.3% share of the market segment.

Top 3 Vendors, Worldwide Integrated Systems, Fourth Quarter of 2015 (Revenues in $ Millions)
Vendor	4Q15 Revenue		4Q15 Market Share		4Q14 Revenue		4Q14 Market Share		4Q15/4Q14 Revenue Growth
1. VCE	$	743.01	36.3	%	$	522.88	27.3	%	42.1	%
2. HPE	$	398.97	19.5	%	$	361.08	18.8	%	10.5	%
3. Oracle	$	362.48	17.7	%	$	375.95	19.6	%	-3.6	%
All Others	$	541.03	26.4	%	$	656.94	34.3	%	-17.6	%
Total Factory Value	$	2,045.50	100.0	%	$	1,916.86	100.0	%	6.7	%
Source: IDC Worldwide Converged Systems Tracker, March 31, 2016

Certified Reference Systems sales declined 13.1% year over year during the fourth quarter of 2015, generating more than $718.6 million worth of sales. This amounted to 23.0% of the total market value. Cisco/NetApp was the top-ranked supplier of Certified Reference Systems in the quarter, generating revenues of $336.72 million and capturing a 46.86% share of the market segment.

Top 3 Vendors, Worldwide Certified Reference Systems, Fourth Quarter of 2015 (Revenues in $ Millions)
Vendor	4Q15 Revenue		4Q15 Market Share		4Q14 Revenue		4Q14 Market Share		4Q15/4Q14 Revenue Growth
1. Cisco/NetApp	$	336.72	46.86	%	$	396.79	48.0	%	-15.1	%
2. EMC	$	229.84	32.0	%	$	307.84	37.2	%	-25.3	%
3. Hitachi	$	67.86	9.4	%	$	58.61	7.1	%	15.8	%
All Others	$	84.22	11.7	%	$	63.87	7.7	%	31.9	%
Total Factory Value	$	718.63	100.0	%	$	827.11	100.0	%	-13.1	%
Source: IDC Worldwide Converged Systems Tracker, March 31, 2016

Hyperconverged sales grew 170.5% year over year during the fourth quarter of 2015, generating more than $355.9 million worth of sales. This amounted to 11.4% of the total market value. Please note the above hyperconverged systems values, like the other product categories listed here, exclude revenue from support and maintenance contracts.

In addition to the tables above, an interactive graphic showing worldwide revenues for the overall converged systems market by segment 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.

For more information about IDC's Worldwide Quarterly Integrated Infrastructure and Platforms Tracker, please contact Lidice Fernandez at 305-351-3057 or [e-mail].

About IDC Trackers
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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 subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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