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Hyperconverged Storage Market Is Gaining Ground

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What is hyperconverged storage?

In the previous part of the series, we saw that the SDS (software-defined storage) is gaining ground, as it enables enterprises to meet their unpredictable storage requirements. The increasing complexity in data storage has led to the emergence of converged and hyperconverged solutions.

Hyperconverged storage is a software-based infrastructure system that combines compute, network, virtualization, and storage technologies into a hardware that is managed by a single vendor. The concept of hyper-converged storage came from converged storage where the vendor provides pre-configured hardware and software to mitigate interoperability issues.

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The hyperconverged market gains ground

Hyperconverged solutions became one of the hottest technologies of 2014 registering a YoY (year-over-year) growth of 162.3% in revenue, according to the IDC (International Data Corporation). The research firm estimates hyperconverged systems sales will grow from $373 million in 2014 to $807 million in 2015, up 116.2% YoY.

Hyperconverged systems achieved success in mid-sized environments and VDIs (virtual desktop infrastructure). In VDI, users can host a desktop operating system on another computer, tablet, or smartphone that is running on a centralized server. The workloads running on these hyperconverged systems will become complex as organizations increase the use of these systems for different applications.

Key players

The hyperconverged systems market is still in its nascent stage and is dominated by startups like Nutanix, SimpliVity, and Scale Computing, who started early. Other startups in this space include Nimboxx, Pivot3, Maxta, Gridstore, and Atlantis Computing.

However, 2014 saw the entry of incumbents like EMC (EMC) and VMware (VMW) in this space. Cisco (CSCO) is also looking to enter this market and was rumored to acquire Nutanix. Dheeraj Pandey, CEO of Nutanix, denied the rumors and said that Dell would be its preferred buyer if it decides to sell the startup. Another major player that is eyeing the hyperconverged systems market is HP (HPQ), with its HP ConvergedSystem 250-HC StoreVirtual.

The iShares Dow Jones US Technology ETF (IYW) has a 3.99% holding in Cisco, a 1.52% holding in HP, and a 1.44% holding in EMC.

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