Large companies require large computer systems and with the work-at-home requirement throughout the country, additional data throughput is necessary. Organizations large and small benefit from the use of cloud-based computing but integrated systems are still a mainstay for many. The worldwide market for these converged systems increased 1.1% year over year to $4.2 billion during the fourth quarter of 2019 according to IDC. One of the defined areas that is showing corporate interest is the hyperconverged system.

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 scale-out architecture and their ability to provide all compute and storage functions through the same x86 server-based resources.

Revenue from hyperconverged systems grew 17.2% year over year during the fourth quarter 2019 and totaled $2.3 billion. This amounted to 54.5% of the total converged systems market revenue according to IDC. The hyperconverged systems market leader is Dell Technologies with $760.0 million in revenue and a 33.3% share. Nutanix generated $312.9 million in branded hardware revenue, representing 13.7% of the total.

There was almost a 3-way tie for third between Cisco, Lenovo, and Hewlett Packard Enterprise. The three companies generated $138.0 million, $121.8 million, and $115.5 million in revenue, or 6.0%, 5.3%, and 5.1% share of the market, respectively.

From the software view of the market, new systems running VMware hyperconverged software represented $938.0 million in total fourth quarter 2019 vendor revenue, or 41.1% of the total market. Systems running Nutanix hyperconverged software represented $616.4 million in fourth quarter vendor revenue or 27% of the total market. Both amounts represent the value of all hardware, software, and system infrastructure software sold, regardless of how it was branded at the hardware level.

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