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Taneja Blog

Taneja Blog / Data Center Systems

Taneja Group Predictions for 2016 – Arun Taneja, #1

Customers will continue to favor buying converged systems in lieu of buying and integrating individual subsystems (compute, storage, networking, virtualization, data protection, etc.). But mostly this shifts revenue from one category to another but doesn’t grow the overall market. If anything, it shrinks the market, as converged systems are often priced at “less than the sum of the parts.” So while the “Converged” market shows a double digit growth rate, it is amply compensated by a negative growth rate on the individual subsystem categories. The more important paradigm shift, HyperConvergence, will show dramatic growth again in 2016. This category, while often lumped in with Convergence, is very different and has a much more powerful impact on IT infrastructure (in terms of design, implementation, management, procurement, pricing and more) than anyone imagined, even a few years ago. The implications of this are huge to traditional storage players but in reality every category of computing is impacted by it. Expect to see an even bigger penetration of HyperConvergence into enterprises of all sizes in 2016. This wave is not ready to crest anytime soon. But expect every Tom, Dick and Harry to present a HyperConverged solution. Many, if not most, will just be glued fakes so be wary of what you see. Many reports are available from Taneja Group that can help one stay clear of the fakes. 

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