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Worldwide Integrated Infrastructure and Platforms Revenue Increases 38.5% Year Over Year in the First Quarter of 2014, Surpassing $1.9 Billion in Value, According to IDC

According to the International Data Corporation (IDC) Worldwide Quarterly Integrated Infrastructure and Platforms Tracker, the worldwide integrated infrastructure and platforms market increased revenue 38.5% year over year to $1.95 billion during the first quarter of 2014 (1Q14). The market generated 653.8 petabytes of new storage capacity shipments during the quarter, which was up 72.3% compared to the same period a year ago.

"As the market moves to the 3rd Platform, IT customers are seeking to leverage cloud, social, mobile, and big data in their businesses. Transforming an IT environment requires a new approach to systems," said Jed Scaramella, Research Director, Enterprise Servers. "Many customers see the convergence of server, storage, and networking in Integrated Systems as a means to deliver IT efficiency and agility. IDC expects to see more workload-optimized systems come to market in the near term."

"Once again we witnessed an increasing number of organizations around the world leveraging integrated systems to address longstanding datacenter infrastructure inefficiencies," said Eric Sheppard, Research Director, Storage. "As such, this market remains one of the fastest growing segments of the overall infrastructure market."

Integrated Platforms vs. Integrated Infrastructure

IDC distinguishes between two market segments: Integrated Platforms and Integrated Infrastructure. Integrated Platforms are integrated systems that are sold with additional pre-integrated packaged software and customized system engineering optimized to enable such functions as application development software, databases, testing, and integration tools. Integrated Infrastructure systems are designed for general purpose, distributed workloads that are likely to have differing performance profiles. While integrated infrastructure is similar to integrated platforms in that it will leverage the same infrastructure building blocks, it is not optimized for a specific workload.

During the first quarter of 2014, the Integrated Platforms market generated revenues of $769.6 million, which represented an 8.3% year-over-year growth rate and 39.5% of the total market value. Oracle was the largest supplier of Integrated Platform systems with $369.0 million in sales, or 48.0% share of the market segment.

Top 3 Vendors, Worldwide Integrated Platforms, Q1 2014 (Revenues are in Millions)

                               
Vendor     1Q14 Revenue     1Q14 Market Share     1Q13 Revenue     1Q13 Market Share     1Q14/1Q13 Revenue Growth
1. Oracle     $369.0     48.0%     $296.8     41.8%     24.3%
2. IBM     $74.3     9.7%     $94.4     13.3%     21.2%
3. HP     $15.5     2.0%     $9.1     1.3%     71.0%
All Others     $310.8     40.4%     $310.5     43.7%     0.1%
Total     $769.6     100%     $710.7    

100%

    8.3%
                   

Source: IDC Worldwide Integrated Infrastructure & Platforms Tracker, June 26, 2014

Integrated Infrastructure sales grew 69.4% year over year during the first quarter of 2014, generating nearly $1.2 billion worth of sales. This amounted to 60.5% of the total market value. FlexPod by Cisco/NetApp was the top-ranked supplier of Integrated Infrastructure in the quarter, generating revenues of $268.4 million and capturing a 22.7% share of the market segment.

Top 3 Vendors, Worldwide Integrated Infrastructure, Q1 2014 (Revenues are in Millions)

                               
Vendor     1Q14 Revenue     1Q14 Market Share     1Q13 Revenue     1Q13 Market Share     1Q14/1Q13 Revenue Growth
1. Cisco/NetApp     $268.4     22.7%     $179.2     25.7%     49.8%
2. VCE     $254.3     21.5%     $176.8     25.4%     43.8%
3. EMC     $179.9     15.2%     $89.9     12.9%     100.2%
All Others     $477.4     40.5%     $251.0     36.0%     90.2%
Total     $1,180.1     100%     $696.8     100%     69.4%
                   

Source: IDC Worldwide Integrated Infrastructure & Platforms Tracker, June 26, 2014

Taxonomy Notes:

IDC defines integrated infrastructure and platforms as pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software. Systems not sold with all four of these components are not counted within this tracker. Specific to management software, IDC includes embedded or integrated management and control software optimized for the auto discovery, provisioning, and pooling of physical and virtual compute, storage, and networking resources shipped as part of the core, standard integrated system.

For more information about IDC's Worldwide Quarterly Integrated Infrastructure and Platforms Tracker, please contact Lidice Fernandez at 305-351-3057 or lfernandez@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

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