I’m completing a report for InformationWeek where the results suggest that customer have declining interest in converged hardware platforms. Then I noticed this post from Cisco on sales of FlexPod.
Cisco and NetApp today announced that the FlexPod® integrated infrastructure solution has generated $3 billion in joint sales since its launch in 2010. FlexPod unit shipments have grown 81 percent year-over-year, with demand for FlexPod solutions now reaching a $2 billion annualized demand run rate.
Here is a Press Release from VCE running at $1B run rate for 2013. VCE Surpasses 2013 Goal of $1 Billion in Annual Sales(1), Accelerates Growth in Q1 2014 – MarketWatch – I surmise that it might have increased a little more by now but I can’t find any more press releases on updated results.
Update 20140625-2314: Thanks to @jpuppet who pointed me to this press release on VCE website which Google couldn’t find for me:
VCE, the leader in converged infrastructure systems, today announced that it surpassed its 2013 goal of generating $1 billion in annual sales, and demand for VCE products and services reached a $1.8 billion annualized demand run rate exiting the fourth quarter of 2013. (My emphasis)
The EtherealMind View
Given my exposure to these products at a number of different customer sites,
I might have expected VCE was closer is close to Flexpod in market revenue. But this limited data suggests that VCE has significantly less revenue. And since a VCE system is significantly more expensive than Flexpod the sales volume would be correspondingly less.
In the survey data from InformationWeek State of The Data Centre 2014 (which will be out shortly), customers interest in converged platforms has dropped from 11% in 2013 to 5% in 2014 for a normalised and stabilised survery response pool. Which begs the question about the long term success of converged system sales from these vendors. Not enough data for a conclusion but signs are that this market may be about start shrinking.
Addendum: The claims of “run rates” instead of simple revenue or sales is unusual. Haven’t yet found why reporting ‘run rates’ without specifics is anything but suspicious.
NB: I don’t have any conclusions about how smaller converged vendors like Nutanix and Scale Computing will impact this market. Too early to tell.
PS: If anyone has updated information about VCE run rate in 2014, please leave a comment and I will update.