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Worldwide integrated systems revenue to reach $12.3bn

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 06 Apr 2018
Global integrated systems revenue is expected to continue to grow in 2018, driven by the hyper-converged segment.
Global integrated systems revenue is expected to continue to grow in 2018, driven by the hyper-converged segment.

Worldwide integrated systems revenue is forecast to total $12.3 billion in 2018, an increase of 18.4% from $10.2 billion in 2017, says Gartner.

The hyperconverged integrated systems segment will experience the strongest growth (55%); while integrated stack systems will experience a 5% decline, it adds.

Integrated systems are combinations of server, storage and network infrastructure, sold with management software that facilitates the provisioning and management of the combined unit, notes Gartner.

Strong growth of hyper-converged integrated systems is being driven by organisations shifting away from integrated infrastructure systems to hyper-converged for its support of wider data centre uses, says Gartner.

By 2019, 30% of organisations that are due to refresh integrated infrastructure system will shift to newer, more flexible and cost-effective alternatives, such as reference architecture and hyper-converged integrated systems, it adds.

The certified reference systems and integrated infrastructure market generated $1.7 billion in revenue during the fourth quarter of 2017, which represents a 3.4% year-over-year decline, and 47.1% of the total converged systems market value, says IDC. On the other hand, revenue from hyper-converged systems sales grew 69.4% year over year to $1.25 billion during the fourth quarter of 2017, it adds.

Julia Palmer, research director at Gartner, said IT infrastructure and operations leaders must begin to shift thinking when evaluating integrated systems.

"The need to accommodate new workloads, integrate edge and public cloud infrastructure and reduce operational complexity is driving I&O leaders to look for more agile integrated systems," she says. "Next-generation systems emerging today are flexible, artificial intelligence-enabled, software-driven solutions that meet the requirements of digital business."

Gartner says reference architecture is the second-largest revenue contributor in the integrated systems market for 2018. It provides a documented representation such as a blueprint, document model or graphic that illustrates "how things fit together" to address a specific business need or opportunity, it notes.

Its value is to provide a common vocabulary, understanding and perspective to discuss implementation options, integration requirements and areas of customisation, adds Gartner. The research firm notes providers such as Dell EMC, Cisco/NetApp, Pure Storage and IBM are actively driving customer acquisition in this space.

Dell was the largest supplier in the reference systems and integrated infrastructure market with $735 million in sales and a 42.9% share, says IDC. Cisco/NetApp generated $565 million in sales, which was the second largest share at 33% and HPE generated $289.3 million in sales and captured 16.9% market share, it adds.

Integrated systems market revenue is forecast to total $12.3 billion in 2018, an increase of 18.4% from $10.2 billion in 2017, adds the research firm. "The number of organisations deploying converged systems continued to expand through 2017," says Eric Sheppard, research vice president, Enterprise Servers and Storage for IDC.

"This drove the total market value past $12.5 billion for the year. While not all market segments increased during the year, those that did grow were able to provide considerable benefits related to the most core infrastructure challenges facing today's data centres."

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