Spending recovers as pandemic conditions wane in the U.S., but competition among HCI vendors remains high

Spending recovers as pandemic conditions wane in the U.S., but competition among HCI vendors remains high

Opportunity

Survey data suggests U.S. hyperconverged infrastructure (HCI) customers’ budgets began to rebound in 1H21 after pandemic-related spending cutbacks in 2020. Although average budgets increased, HCI vendors must still contend with overarching data center consolidation trends that are limiting net-new HCI use cases, illustrated by 54% of respondents using HCI only to replace outdated hardware for existing workloads. Most respondents do not plan to shrink their HCI installments over the next three years, suggesting traditional servers and storage will face the greatest impact in the near term as organizations switch to HCI and migrate other workloads to SaaS and public cloud.

Competitive Landscape

Respondents believe that HCI vendors are differentiated by their abilities to run specific workloads. This is critical for vendors to account for in go-to-market (GTM) motions as customers give considerable weight to whether a vendor has specific experience with their use case. TBR believes experience with hybrid use cases such as backup, disaster recovery and DevOps will be key, as will industry-specific use cases that cater to sensitive data such as medical records in healthcare or transaction processing in financial services.

Learn more: Join TBR Aug. 11 at 1 p.m. EDT for an exclusive webinar during which Principal Analyst and Practice Manager Angela Lambert will review top takeaways and key implications from TBR’s 1H21 Hyperconverged Platforms Customer Research. Click here to save your seat!

The Hyperconverged Platforms Customer Research addresses hyperconverged infrastructure (HCI) vendors’ customer-centric questions, drilling down into key categories such as adoption and budget, purchase drivers, workloads and attributes, purchase patterns, and vendor selection. Although the report is HCI-centric, TBR also researches the answers to questions related to software and services, such as what types of security customers desire to attach to their HCI purchases and what additional services are desired to make an HCI purchase complete.

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