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Hyper-Converged Infrastructure Market Growing at a CAGR 28.1% | Key Player Dell EMC, Nutanix, Cisco, Huawei, NetAPP

Hyper-Converged Infrastructure Market Growing at a CAGR 28.1% | Key Player Dell EMC, Nutanix, Cisco, Huawei, NetAPP
Dell EMC (US), Nutanix (US), Cisco Systems (US), HPE (US), Huawei (China), NetApp (US), VMware (US), Pivot3 (US), Scale Computing (US), Startoscale (US), DataCore (US), Maxta (US), Microsoft (US), HiveIO (US), Supermicro (US), Hitachi Vantara (US), Diamanti (US), Lenovo (China), NEC Corporation (Japan), Riverbed Technology (US), IBM (US), Fujitsu (Japan),
Hyper-Converged Infrastructure Market by Component (Hardware and Software), Application (ROBO, VDI, Data Center Consolidation, and Backup/Recovery/Disaster Recovery), End User, Organization Size, Enterprise, and Region - Global Forecast to 2025

The global Hyper-Converged Infrastructure (HCI) Market size is expected to reach USD 27.1 billion by 2025, from USD 7.8 billion in 2020 and growing at a Compound Annual Growth Rate (CAGR) of 28.1% during the forecast period. An increasing need to manage regulatory and policy complianceswouldspur the demandforHCIofferingsacross the globe.HCI provides increased system availability with automatic resource allocation, behavior-aware redundancy, and automated backup procedures to manage significant workloads and sensitive data. Rapid recovery is the key to any enterprise to achieve long-term success and gain a competitive advantage. The increasing data protection requirements would also increase demand for HCI during the forecast period.

The software segment to grow at a higher CAGR during the forecast period

The software component of HCI comprises a hypervisor, software-defined storage solution, and unified management console. The tightly integrated HCI software layer enables the execution of key data center functions, which improves the performance in production environments and address the capacity and performance challenges of business. The hypervisor is a critical component used in the HCI solutions as it provides virtualization and abstraction of the underlying hardware. The software-defined storage solutions ensure application performance, data availability, and flexible scalability. The unified management interface simplifies monitoring and maintaining the infrastructure.

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The backup/recovery/disaster recovery application to grow at the highest CAGR during the forecast period

Datacenter outages may result in substantial losses for organizations. Disaster recovery is typically part of a wider strategy of business continuity. To ensure business continuity, organizations are increasingly switching from traditional backups to virtualized backups of a single VM/application. They are deploying HCI solutions for backup/recovery/disaster recovery applications. Backup/recovery/disaster recovery is implemented on HCI by replicating each VM to a backup server. In case of a VM failure, a system administrator can restore the backup instantly. This brings up all the critical business services and allows business operations to continue. This advantage of HCI is expected to fuel its demand over the forecast years.

The HCI market includes major vendors, such as Dell EM (US), Nutanix (US), Cisco Systems (US), HPE (US), Huawei (China), NetApp (US), VMware (US), Pivot3 (US), Scale Computing (US), Startoscale(US), DataCore(US), Maxta (US), Microsoft(US), HiveIO(US), Supermicro(US), Hitachi Vantara(US), Diamanti(US), Lenovo(China), NEC Corporation (Japan), Riverbed Technology(US), IBM(US), Fujitsu (Japan), StarWind (US), Sangfor Technologies(China), and StorMagic (UK).These players have embraced various growth strategies to expand their global presence and their market shares. New product launches and partnerships/collaborations are significant growth strategies adopted by the major players to growfurther in the HCI market.

Dell EMC has witnessed continuous growth over the years in the HCI market. The company offers a wide range of products in the HCI space to meet the requirements of customers’ diverse needs. It has adopted both organic and inorganic growth strategies to compete with other players in the market effectively. Moreover, the company’s primary focus area is to expand its business in the potential international markets. For instance, in August 2018, Dell EMC expanded its presence in Malaysia to deliver VxRail appliances 4.5 offerings with features, such as an increase in hardware flexibility, improved interoperability, and cost-effectiveness. Dell EMC has built a robust partner ecosystem intending to explore market opportunities in the global space and better serve customer needs for HCI. Through a continuous focus on product development and up-gradation, the company canaddress the market needs.For instance, in May 2017, Dell EMC enhanced its VxRail Appliances, VxRack Systems, and XC Series with features, such as support for data-demanding applications, high performance networking architecture, improved hardware flexibility, enterprise-level data protection, simplified backup and disaster recovery, and reduce IT operation costs.

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Nutanix is a prominent player in the HCI market. The company has adopted an organic growth strategy of continuous innovations. For instance, in May 2020, Nutanix enhanced its HCI software and added new capabilities to automate disaster recovery. The latest version helps in recovery from the simultaneous failure of two or more data centers in a quick time.In line with its inorganic growth strategies, Nutanix focuses on building a strong partner ecosystem to cater to its wide range of clientele. The company aims to expand its market reach and strengthen its market position in the competitive market. For instance, in 2018, Nutanix partnered with Intel to enable SIs and VARs to deliver advanced IT infrastructures using the Nutanix Enterprise Cloud OS software, which runs on Intel Data Center Block. The advanced IT infrastructure offers high performance, availability, and seamless customizations to customers. In August 2018, Nutanix acquired Frame to provide DaaS on multiple clouds. Through the acquisition, Nutanix has expanded its Xi Cloud service and support large-scale VDI projects.

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