According to IDC’s recent Worldwide Quarterly Converged Systems Tracker, the worldwide enterprise storage market remained flat in Q1 while NetApp experienced revenue growth of 13.3% in both the total and external worldwide enterprise storage systems market. It was reported that NetApp’s growth in Q1 largely came from the banking, telecommunications and government verticals.
As Liz Conner, research manager, Storage Systems at IDC says, “The enterprise storage market closed out the first quarter relatively flat, yet adhered to a familiar pattern. Spending on traditional external arrays continues to slowly shrink while spending on all-flash deployments once again posted strong growth and helped to drive the overall market. Meanwhile the very nature of the hyperscale business leads to heavy fluctuations within the market segment, displaying solid growth in 1Q17.”
As more organizations look at ways they can consume IT resources in a way that makes the most sense for them, the converged and hyper converged market is also set for growth and many believe it will take a large share of the of the IT infrastructure market over the next few years.
Converged infrastructure—and its big brother hyper converged infrastructure—rolls compute, storage, and networking into a self-provisioning pool of shared resources, sometimes with a hardware appliance, sometimes abstracted into software. The converged and hyper converged growth theory is proving true so far this year as IDC’s Worldwide Quarterly Converged Systems Tracker showed a jump in revenue in the converged systems by 4.6% to $2.67 billion during the first quarter of 2017.
“Converged systems have become an important source of innovation and growth for the data center infrastructure market,” said IDC’s Eric Sheppard, research director of Enterprise Storage and Converged Systems. “These solutions represent a conduit for the key technologies driving much needed data center modernization and efficiencies, such as flash, software-defined infrastructure and private cloud platforms.”
Hyper converged infrastructure (HCI) platforms are also on a path to growth as organizations look to build their next-generation data center strategy and deploy workloads, virtual desktops, run analytics, and workloads for remote offices. IDC reports hyper converged sales grew 64.7% year over year during the first quarter of 2017, generating $665.1 million worth of sales. Hyper converged systems differentiate themselves from converged systems by allowing for ease of use with storage, compute, and networking capabilities located in a single piece of hardware. Furthermore, by simplifying IT administration and centralizing technology with HCI, enterprises are able to reduce CAPEX and OPEX to improve efficiency and accelerate growth.
You can find out more about NetApp’s hyper converged infrastructure here.