Worldwide Integrated Infrastructure and Platforms Revenue Increased 33.8% Year Over Year to $2.4 Billion in the Second Quarter of 2014, According to IDC

FRAMINGHAM, Mass.--()--According to the International Data Corporation (IDC) Worldwide Quarterly Integrated Infrastructure and Platforms Tracker, the worldwide integrated infrastructure and platforms market increased revenue 33.8% year over year to $2.4 billion during the second quarter of 2014 (2Q14). The market generated more than 833 petabytes of new storage capacity shipments during the quarter, which was up 63.4% compared to same period a year ago. First half results were comparable with the market value growing 35.9% compared to 1H2013, to $4.3 billion.

"It's notable that sales of integrated systems have driven considerable and continued growth at a time when many portions of the enterprise infrastructure market have experienced lackluster results," Eric Sheppard, Research Director, Storage. "Integrated systems have clearly become a critical go-to market approach and an important source of growth for infrastructure suppliers looking to capitalize on a market need to reduce datacenter infrastructure inefficiencies."

"IDC continues to find enterprise customers bullish in their adoption of integrated systems; a greater number of customers are considering these solutions in their IT procurement decisions,"said Jed Scaramella, Research Director, Enterprise Servers. "As a result the integrated systems market is shaping up to be a competitive battleground for IT vendors. A critical win in the market translates into increased footprint within the customer base, usually at the expense of a competitor."

Integrated Platforms vs. Integrated Infrastructure

IDC distinguishes between two market segments: Integrated Platforms and Integrated Infrastructure. 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. Integrated infrastructure systems are designed for general-purpose, distributed workloads that are likely to have differing performance profiles. While integrated infrastructure is similar to integrated platforms in that it will leverage the same infrastructure building blocks, it is not optimized for a specific workload.

During the second quarter of 2014, the Integrated Platforms market generated more than $1 billion in sales, which represented an 11.1% year-over-year growth rate and 43.7% of the total market value. Oracle was the largest supplier of Integrated Platform Systems with $577 million in sales, or 55.0% share of the market segment.

Top 3 Vendors, Worldwide Integrated Platforms, Q2 2014 (Revenues are in Millions)

Vendor      

2Q14
Revenue

   

2Q14 Market
Share

   

2Q13
Revenue

   

2Q13 Market
Share

   

2Q14/2Q13
Revenue
Growth

1. Oracle       $577.0     55.0%     $487.6     51.6%     18.3%
2. IBM       $116.6     11.1%     $115.4     12.2%     1.0%
T3. HP       $17.9     1.7%     $9.3     1.0%     92.1%
T3. Hitachi       $17.3     1.7%     $0.0     0.0%     NA
All Others       $320.1     30.5%     $332.0     35.2%     -3.6%
Total Factory Value       $1,048.9     100%     $944.3     100%     11.1%
                     

Source: IDC Worldwide Integrated Infrastructure & Platforms Tracker, September 25, 2014

Integrated Infrastructure sales grew 59.2% year over year during the second quarter of 2014, generating $1.35 billion worth of sales. This amounted to 56.3% of the total market value. VCE was the top-ranked supplier of Integrated Infrastructure during the quarter, generating revenues of $328.6 million and capturing a 24.3% share of the market segment.

Top 3 Vendors, Worldwide Integrated Infrastructure, Q2 2014 (Revenues are in Millions)

Vendor      

2Q14
Revenue

   

2Q14 Market
Share

   

2Q13
Revenue

   

2Q13 Market
Share

   

2Q14/2Q13
Revenue
Growth

1. VCE       $328.6     24.3%     $211.1     24.9%     55.7%
2. Cisco/NetApp       $303.4     22.5%     $219.5     25.9%     38.3%
3. EMC       $239.1     17.7%     $174.2     20.5%     37.3%
All Others       $478.8     35.5%     $243.5     28.7%     96.7%
Total Factory Value       $1,350.0     100%     $848.2     100%     59.2%
                     

Source: IDC Worldwide Integrated Infrastructure & Platforms Tracker, September 25, 2014

In addition to the two tables above, interactive graphics showing 2Q14 and 2Q13 market share for the top three vendors are available for both the integrated platforms market and the integrated infrastructure market. Instructions on how to embed these graphics into online news articles and social media can be found by viewing this press release on IDC.com.

Taxonomy Notes:

IDC defines integrated infrastructure and platforms 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 lfernandez@idc.com.

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. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

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. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

Contacts

International Data Corporation
Eric Sheppard, 508-988-7925
esheppard@idc.com
or
Jed Scaramella, 508-935-4596
Jscaramella@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com

Release Summary

According to IDC, the worldwide integrated infrastructure and platforms market increased revenue 33.8% year over year to $2.4 billion in the second quarter of 2014.

Contacts

International Data Corporation
Eric Sheppard, 508-988-7925
esheppard@idc.com
or
Jed Scaramella, 508-935-4596
Jscaramella@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com