VCE Rated as Leaders in Magic Quadrant for Integrated Systems

VCE_Gartner_Magic_Quadrant_01

Research firm Gartner has released its Magic Quadrant for Integrated Systems, and the results look good for VCE.

In a report dated 16 June 2014, Gartner stated that the integrated system market is growing at 50% or more per year, creating an unusual mix of major vendors and startups to consider.

Integrated systems are combinations of server, storage and network infrastructure, sold with
management software that facilitates the provisioning and management of the combined unit. The
market for integrated systems can be subdivided into broad categories, some of which overlap. Gartner categorizes these classes of integrated systems (among others):

– integrated stack systems
– integrated infrastructure systems
– integrated reference architectures
– fabric based computing

VCE_Gartner_Magic_Quadrant

As one can see from the above diagramme, VCE are market leaders in this arena, with Cisco and Oracle occupying the ‘Leaders’ quadrant as well.

VCE’s Strengths:

– VCE has had proven success across major global enterprises in banking, retail, healthcare and
manufacturing.VCE_Gartner_Magic_Quadrant_02

– It has a single-source cooperative support model with Cisco, EMC and VMware.
VCE Vision Intelligent Operations management complements Cisco UCS and VMware
management.

– Close alignment to EMC enables new business opportunities from EMC-led storage clients.

– VCE benefits from Cisco’s and VMware’s broadly deployed incumbent footprints.

VCE’s Cautions:

– There are potential conflicts among the partners’ competitive interests.

– Competition exists from channel programs and reference architectures (such as Cisco-NetApp
FlexPod and EMC VSPEX).

– Users who favor the more holistic single-vendor solution from vendors like Oracle, IBM and HP
will be more likely to question a partner-dependent business model.

– VCE is in the early phases of channel and geographic expansion.

Gartner also provided a brief market overview, where based on 2013 revenue rates, it estimated the overall market for integrated systems to exceed $6 billion in 2014, with a growth rate of 50% over the prior year. This still represents a low percentage of the $80 billion total hardware market, but its continual growth rates will pose a challenge to the vendors to maximise share of wallet and margins with a compelling value proposition going forward in the future.

First Distribution is the sole distributor of VCE in South Africa.

For more information on VCE’s converged infrastructure solutions, please contact Rohan on (011) 540 2640 or rohan@firstdistribution.co.za