It looks like 2016 is shaping up to be a banner year in the hyperconverged infrastructure category. The legacy stack is shrinking at negative 1.7% year over year, the public cloud is growing at 59%, and the hyperconverged infrastructure segment is growing at 119%. New companies are entering into the hyperconverged market from all corners and established vendors are putting a fresh spin on their existing portfolios and offering them to the market as “hyperconverged.” And “coopetition” has been and will continue to be the new normal in the hyperconverged space.
And competition has always been the reality for SimpliVity’s partnership with Cisco. Cisco was one of the early movers in the converged category with a first generation converged solution offered pre-configured bundles based on a reference architecture. Although Cisco has a formal relationship with VMware and EMC via VCE, which continues to be very successful, Cisco also has an equally successful, but more informal partnership with VMware and NetApp that is more field driven. Keep in mind, all of this was happening while Cisco had its own storage product in the market, Invicta (Whiptail). And in the hyperconverged space, they’ve partnered with several vendors – including SimpliVity.
What is very gratifying is that even though there are several hyperconverged alternatives available in the market for Cisco UCS servers, the market momentum for SimpliVity’s OmniStack Integrated Solution with Cisco UCS has been nothing short of stellar. Last week, we announced a major milestone. Via our meet-in-the-channel partnership with Cisco, SimpliVity has delivered over 1,000 hyperconverged infrastructure systems based on SimpliVity OmniStack and Cisco UCS—totaling over 350 Petabytes of stored capacity.
The press release provides additional details regarding customer adoption, including one of the world’s largest mass media groups; one of the top three global commodity-trading firms; a top five global insurance company; one of the largest electric utilities in the US; and one of the three military defense departments of the US Department of Defense. Cisco UCS customers are selecting OmniStack because only SimpliVity converges all IT infrastructure and data services below the hypervisor, delivering enterprise-grade hyperconvergence with validated 3.7x TCO savings compared to the legacy stack and up to 49% cost savings compared to Amazon Web Services.
Today, you may have also seen an announcement regarding HyperFlex, a second-generation converged solution that integrates servers, storage, and storage networking. The HyperFlex solution does not offer comprehensive built-in data protection, and its data efficiency capabilities are extremely limited. And in the spirit of coopetition, we anticipate competing and winning against HyperFlex as we do today against other second-generation solutions.
SimpliVity continues to view Cisco as an important partner and we are committed to working together in Meet in the Channel mode alongside our other Meet in the Channel partner, Lenovo. We will also continue to offer our OmniCube, an appliance sold by SimpliVity via partners built on Dell OEM servers.
We believe in offering customer choice on all dimensions, from their choice of x86 platform, to their choice of cloud provider, hypervisor, and management tools, and are confident that the Cisco UCS platform will continue to be a top choice for our customers and partners. We are continuing to make significant investments in interoperability testing and validation of SimpliVity with UCS Director and ACI and already have customers successfully deployed with these solutions.
And although we will be cooperating with Cisco in many opportunities and competing in others, we are confident that OmniStack will continue to be the best hyperconverged infrastructure platform for Cisco UCS and will continue to be the best option for partners who aim to maximize the growth potential of their UCS business.
Read more about SimpliVity’s OmniStack Integrated Solution with Cisco UCS.