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HPE fights back in hyperconverged, makes gains over Dell and Nutanix
- 19 September, 2020 08:00
Antonio Neri (CEO - HPE)
Hewlett Packard Enterprise (HPE) has upped the hyperconverged ante against industry rivals Dell Technologies and Nutanix following a bumper second quarter of worldwide converged systems sales.
The technology giant posted ‘branded hardware’ revenue growth of 53.5 per cent during the three-month period, compared to declines of 2.6 per cent and 2.0 per cent for Dell and Nutanix respectively. Such an increase - rising from US$84.7 million to $130 million year-over-year - has resulted in market share gains of 2.4 per cent, reaching 7.0 per cent from 4.6 per cent within the space of 12 months.
Despite the sizeable gains, Dell still holds a comfortable overall market lead, reporting revenue of $519.6 million, compared to $533.2 million during the same period of 2019. Likewise Nutanix, which posted revenue of $253.5 million during the quarter, slightly down from $258.8 million the year previous.
Overall, and according to IDC findings, Dell holds 27.9 per cent market share (down from 29.0 per cent), ahead of Nutanix on 13.6 per cent (down from 14.1 per cent) and HPE.
Specific to hyperconverged infrastructure (HCI) systems' software brand, new systems running VMware hyperconverged software delivered revenue of $722.9 million during the quarter, representing 38.9 per cent of the total market.
Delving deeper, systems running Nutanix hyperconverged software accounted for $554.1 million in vendor revenue at 29.8 per cent of the total market.
“Both amounts represent the value of all HCI hardware, HCI software and system infrastructure software sold, regardless of how it was branded at the hardware level,” an IDC report stated. “As hardware sales are a major factor in these data, the chart [below] should not be assumed to solely reflect, or completely align with, the respective companies' overall software performance.”
More broadly speaking, worldwide converged systems market revenue decreased 4.5 per cent year-over-year to $3.9 billion during the second quarter.
“The overall converged systems market showed a decline during a difficult second quarter as broader weakness in enterprise buying across server and storage also impacted HCI," said Paul Maguranis, senior research analyst of Infrastructure Platforms and Technologies at IDC.
"The certified reference systems & integrated infrastructure and integrated platforms segments both declined this quarter while the hyperconverged systems segment was able to witness modest growth despite headwinds in the market. This growth was mostly due to strong HCI performance in Asia Pacific, especially in China and Japan.”
As outlined by Maguranis, IDC's converged systems market view offers three segments, spanning certified reference systems and integrated infrastructure; integrated platforms, and hyperconverged systems.
The certified reference systems and integrated infrastructure market generated just over $1.5 billion in revenue during the second quarter, representing a decline of 7.6 per cent year-over-year and accounting for 39.1 per cent of all converged systems revenue.
In addition, integrated platforms revenues declined 13.1 per cent year-over-year to $544 million, amounting to 13.8 per cent of the total converged systems market revenue. Revenue from hyperconverged systems sales grew 1.1 per cent year over year during the second quarter, totalling nearly $1.9 billion - this amounted to 47.1 per cent of the total converged systems market.