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Integrated Systems Market Jumps Nearly 70% in Q3 2013

Posted January 2, 2014


The market for integrated systems received a big boost in the third quarter of 2013 (3Q13), according to market research firm IDC.

Vendors of integrated infrastructure and platform offerings generated $1.4 billion in sales, a 68.5 percent year-over-year increase in sales in 3Q13. Integrated Systems MarketCalling the strong gains "a real bright spot within the IT industry," IDC research director Eric Sheppard said IT providers have discovered a sweet spot in the competitive market for data center solutions.

"Server, storage and networking vendors have clearly created a set of offerings that resonate very well with datacenter operators looking for the next level of infrastructure efficiency for their highly virtualized environments," Sheppard stated in press remarks.

IDC categorizes integrated platform systems as integrated systems with customized system engineering that are bundled with workload-specific software such as application development software, databases and testing tools. Sales of such systems (minus software) reached $399.8 million in 3Q13, a 14.2 percent year-over-year increase. Oracle led the pack with 45.6 percent share of the segment on $181.7 million in sales.

In terms of storage, vendors "generated 622.6 petabytes of new storage capacity shipments during the quarter, which was up 101 percent compared to the third quarter of 2012," revealed the research firm.

On the general-purpose front, the market segment for integrated infrastructure systems saw hefty gains of 108.6 percent on sales of $984.9 million. Integrated server specialist VCE, a joint venture from Cisco, EMC and VMware, took the top spot with $231.1 million in revenues and a 23.5 percent share of the segment.

Taken altogether, VCE's success in 3Q13 also helped the company take the number one spot with 16.8 percent of the worldwide market for integrated infrastructure and platforms. Cisco and NetApp, with $213.5 in sales and 15.4 percent market share, teamed on FlexPod, a converged infrastructure offering, and were statistically tied with EMC ($202 in sales, 14.6 percent market share) for second place, according to IDC.

EMC, however, is catching up fast. The data storage titan experienced year-over-year growth of 532.2 percent. Oracle and IBM also scored a statistical tie for third place, rounding out the top five.

IDC research director Jed Scaramella noted in a statement that the "Integrated systems market continues to gain momentum, and we saw strong adoption across all categories in the third quarter." And as data center operators seek to continue streamlining IT operations, the New Year looks just as rosy.

"A greater number of IT customers are realizing the value proposition of integrated systems and how they can simplify IT operations. IDC expects integrated systems to be on many customers' radars during purchasing cycles in 2014," stated Scaramella.


Pedro Hernandez is a contributing editor at ServerWatch. Follow him on Twitter @ecoINSITE.

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