Convergence in 2017 – Three Business Concepts to Create Advantages
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We’ve been seeing steady increase in spending when it comes to converged systems. More industries and verticals are redesigning their data center to better support efficiency, scalability, and improved user productivity. According to IDC, during the fourth quarter of 2015, the Integrated Systems (CI) market generated revenues of more than $2.0 billion, which represented a year-over-year increase of 6.7% and 65.6% of the total market value. These systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software.
IDC points out that for the full year 2015, worldwide converged systems market revenue increased 8.3% to $10.6 billion when compared to 2014.
“We are seeing some of the market demand move into deals with lower average selling prices (ASPs), which is driving a shift from traditional converged systems to hyperconverged systems,” said Kevin M. Permenter, senior research analyst, Enterprise Servers. “Right now, most of the growth is coming from the mid-market, which is heavily skewed toward hyperconverged systems. We are expecting to see this trend continue into the near term.”
To that extent – it’s important to see exactly why converged systems are being used to create real-world competitive advantages. Consider the following:
- Convergence supports business agility, fostering market leadership. Intelligent converged infrastructures create market leaders and help partners stand out. Not just that – it also creates a truly agile business ecosystem. Being able to respond to market shifts and user demands is critical to stay ahead. Converged infrastructure solutions support the latest virtualization, cloud, and business solutions. This means that applications are delivered faster, users have better access to resources, and the business becomes a market leader creating new kinds of solutions. Remember, these are environments built to integrate into an intelligent backplane capable of dynamic content and resource controls. This means allowing the business to request specific resources and support new initiatives.
- Convergence partners help with competitive differentiation! Differentiate yourself from traditional data center partners by creating a powerful converged infrastructure ecosystem. Whether you’re hosting workloads for customers or are delivering applications to a distributed user environment – converged infrastructure help you create real competitive differentiation. By deploying convergence and offering this as a solution; you help organizations truly control how they go to market and help align their goals to the capabilities of a converged data center. For the customer, they’ll be able to control their users, deploy faster solutions, and become a lot more agile. Most of all, they’ll be able to compete more efficiently with an architecture capable of supporting an evolving business.
- The modern cloud is built on converged ecosystems. New kinds of cloud opportunities are everywhere. By tying in network, compute, storage, and the application environment you create unparalleled converged solutions. This is why the modern cloud ecosystem runs on convergence. By being able to centrally manage and deploy resources – your converged infrastructure will also support your cloud initiatives. Convergence allows for greater levels of virtualization and integration with distributed cloud environments. This allows for real resources efficiency, cloud scalability, and supports and evolving business model.
The days of the massive data center buildouts are quickly coming to an end. According to Gartner, the market for hyperconverged integrated systems (HCIS) will grow 79% to reach almost $2 billion in 2016, propelling it toward mainstream use in the next five years. This makes it one of the fastest-growing and most valuable technology segments in the industry today. Organizations need a new way to unify key resources to delivery more applications, desktops, data, and user content. Furthermore, organizations are asking that data centers run more efficiently, reduce the overall footprint, and support emerging digital business initiatives.
So, if you’re goal in the upcoming year is to reduce your data center footprint, increase density, and support digital initiatives, make sure to look at converged systems as a real option. These environments are creating great economics for data center managers as well as business leaders. When you align your IT environment with business operations, you allow for a truly agile ecosystem; one that is capable of meeting today’s dynamic market demands.