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By | Chris Mellor 4th April 2016 09:57

EMC's virtue is its VCE, but Cisco and NetApp's Flexpods slightly floppy

It's all about converged and hyper-converged now, says IDC

IDC’s Converged Systems Tracker for 2015’s fourth quarter shows EMC’s VCE unit is doing very well, Flexpod reference architecture systems are limp, and hyper-converged system growth is properly perky.

Over all the converged systems market grew revenue 8.5 per cent year over year to $3.1bn in 2015’s last quarter. Within this market there are VCE-like integrated systems, the certified reference architecture systems and hyper-converged systems such as those produced by Nutanix and Simplivity.

In the integrated systems market, totalling $2.045bn, VCE led with a 36.3 per cent share, up 42.1 per cent year-on-year to $743mn. HPE was in second place with $398.97mn revenue, a 19.5 per cent share and 10.5 per cent y-o-y growth. Third place was given to Oracle with -3.6 per cent change y-o-y to $362.48mn and a 17.7 per cent share. This segment of the overall converged systems market grew 6.7 per cent y-o-y and EMC’s VCE unit dominates it.

The certified reference systems market declined 13.1 per cent y-o-y to $718.63m. Cisco/NetApp (Flexpod) led it with a 46.86 per cent share and $336.72m revenues, down 15.1 per cent y-o-y. EMC (VSPEX class systems) was in second place with a 32 per cent share at $229.84m, down 25.3 per cent on the year.

Hitachi did very well, and was in third place with $67.86m revenues, a 9.4 per cent share, and up 15.8 per cent y-o-y. The Others category took 11.7 per cent at $84.22mn, growing 31.9 per cent on the year.

Pride of place in the growth stakes went to hyper-converged systems, where sales grew 170.5 per cent year on year to $356m. It's the smallest segment of the three but growing the fastest.

IDC thinks there was more demand for lower priced systems in the overall converged systems market which encouraged a shift from converged to hyper-converged systems. Most of the growth came from the mid-market which is focused more on hyper-converged products. That’s expected to continue. ®

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