Today, we’ve witnessed another major validation point that the market for hyperconverged infrastructure has achieved mainstream adoption with the successful IPO of the industry’s first hyperconverged vendor, Nutanix.
Analyst data continues to demonstrate strong hyperconverged infrastructure market growth. According to Gartner market share analysis dated August 16, 2016, the hyperconverged integrated systems segment achieved an estimated 71.4% annual growth rate. In the same report, Gartner estimates that SimpliVity’s annual growth outpaced the market at over 110%.*
Many of the established infrastructure players, such as Cisco, Dell/EMC, and Hewlett Packard Enterprise (HPE), have noticed the opportunity as well. Though largely on the sidelines during formative and groundbreaking days of the industry, all have recently moved into the hyperconverged infrastructure category with offerings of their own. However, these traditional players have to do a lot to catch up with the hyperconvergence leaders that have pioneered the space.
SimpliVity is experiencing tremendous market momentum, with the total number of customers increasing by 177%, a repeat purchase rate of more than 30%, and an average deal size for our OmniStack hyperconverged infrastructure solution with Cisco or Lenovo servers increasing 43% quarter-over-quarter in the first quarter. Another great testament to our momentum is being a named a leader in the Forrester Wave for Hyperconverged Infrastructure (HCI), Q3 2016, which is the first time that Forrester has published a Wave in this category.
This momentum, as well as our customer and market momentum is testimony to SimpliVity’s founding mission: to simplify IT infrastructure. We converge all IT infrastructure and data services for virtualized workloads to power the world’s most efficient and resilient data centers. Our customers reduce the number of devices they manage by 10:1 and lower costs by 70% or more when compared to legacy infrastructure. Unlike alternative approaches, which only converge servers and storage, we also eliminate our customers’ use of existing third-party backup and replication software while improving recovery time and recovery point objectives.
But it’s not just about lowering costs and mitigating risk. What is probably most gratifying is hearing how IT teams that have deployed SimpliVity hyperconverged infrastructure now have more time and resources to focus on new IT projects that better align IT to business objectives.
Hyperconvergence is clearly where IT infrastructure is heading and Nutanix’s IPO is another important highlight in that journey. We’re excited to have been an integral part of the market’s past and here to celebrate today’s major milestone, but most of all, we look forward to paving the way for its future.
*Source: Gartner, Market Share Analysis: Data Center Hardware Integrated Systems, Worldwide, 2015, Aman Munglani, 15 August 2016, G00307987