Michael Dell predicts Dell will dwarf Nutanix

By on
Michael Dell predicts Dell will dwarf Nutanix

Michael Dell expects Dell Technologies to widen its hyperconverged infrastructure leadership position significantly in the future, with the goal to become upwards of six-times larger than nearest competitor Nutanix.

“We have a super strong position [in hyperconverged infrastructure] and it’s only getting stronger,” said Dell in an interview with CRN. “So we’re No. 1 and we’re more than twice the size of No. 2 [Nutanix]. We have our sights set on being three-times, four-times, five-times, six-times bigger than No. 2.”

This week, research firm IDC released worldwide hyperconverged infrastructure (HCI) market share data, showing that Dell Technologies gained significant share over Nutanix in the third quarter of 2019. Dell Technologies captured 35.1 percent of the global HCI systems market share, up from 29.3 percent share year over year. Dell generated US$708 million in hyperconverged system sales, up 43 percent year over year.

“IDC measures the calendar quarter; our financial quarter is one month different than that. Our VxRail orders in the third quarter were up 82 percent year over year, even stronger than the IDC numbers reflect,” said Dell.

Nutanix placed in second for worldwide HCI systems market share in the third quarter, capturing 13 percent share, down from 16.6 percent share year over year, according to IDC. Nutanix HCI system sales reached $262 million, down 7 percent compared to the same quarter one year ago. Nutanix has made a strategic decision over the past two years to remove HCI hardware sales from the company in order to fully transition into a software and subscription company.

Nutanix did not immediately respond to comment by press time.

Michael Dell said one of the main reasons VxRail is growing rapidly is because customers are realizing the hyperconverged infrastructure’s top-notch automation.

“Customers are increasingly figuring out that when you have that level of automation like we built into VxRail, it costs less than the public cloud -- especially from a predictable workload standpoint,” said Dell. “So there’s tons of growth there and we have VxRail for the edge, which is starting to be a big win particularly in multi-location businesses like retail, banking, insurance, etc. I don’t see us slowing down and certainly the storage innovation continues from our team.”

Looking at IDC’s third quarter market share data, VMware captured 38 percent share of worldwide HCI software, up from 34.8 percent share year over year. VMware generated $766 million in HCI software sales in the third quarter, up 29.5 percent compared to the same quarter one year ago.

Nutanix came in second place in terms of HCI software at 27.2 percent share, down from 33.7 percent share year over year, according to IDC. Nutanix HCI software sales reached approximately $550 million, representing a decline of 4 percent year over year.

Both Dell EMC and VMware, who are both part of Dell Technologies, were named leaders in Gartner’s 2019 Magic Quadrant for Hyperconverged Infrastructure. Nutanix was also named a leader, ranking No. 1 for execution and No. 2 for vision on the magic quadrant. VMware ranked No. 1 in vision and No. 2 in execution, while Dell EMC won third place in both vision and execution on the magic quadrant.

This article originally appeared at crn.com

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © 2018 The Channel Company, LLC. All rights reserved.
Tags:

Most Read Articles

You must be a registered member of CRN to post a comment.
| Register

Poll

You have to spend $10k on new business hardware. What do you buy?
Collaboration hardware
Enormous monitors
New smartphones
New PCs
Minimum spec Mac Pro for $9,990.
We'd fake some paperwork and have a party instead
View poll archive

Log In

Username / Email:
Password:
  |  Forgot your password?