Magic Quadrant for HCI Software

This report, published on December 7, 2020, was authored by analysts Jeffrey Hewitt, Philip Dawson, Julia Palmer, and Tony Harvey, Gartner, Inc.

HCI software stacks support software-defined infrastructure that spans compute, storage, networking and management. I&O leaders should regard HCI software as a technology that addresses requirements related to the core IT, business-critical, cloud, edge and VDI use cases.

Market Definition/Description
HCI software provides virtualized compute, storage, networking and associated (cloud) management – from a single instantiation running on server hardware. When the first HCI platforms emerged a decade ago, they were sold primarily as alternatives to expensive and complex storage arrays for VMware environments. These initial HCI solutions were sold primarily as appliances by a single hardware vendor – what Gartner defined as hyperconverged integrated systems (HCIS).

As the market has evolved, there has been a distinct bifurcation, with HCIS being the direction driven by hardware providers, and HCI software being driven by the software providers. The latter is the focus of this analysis and is distinct from the former, because it supports and is sold on server hardware solutions from multiple server providers. This HCI software has become the mechanism for driving a wider array of solutions. Some of those solutions focus on market niches that may align with specific use cases or particular geographies. Other HCI software solutions are focused broadly on more cloud-related functionality.

All HCI software, by definition, includes a certain set of functionality. Some of that functionality may be enabled by hypervisors, management tools and networking, or through only a storage platform combined with third-party software providers to complete the HCI software stack.

That functionality is:
• Virtual compute, storage and networking, using a scale-out, shared-nothing architecture
• Unified, “single pane of glass” management for virtual compute, storage and networking resources; for the purposes of this analysis, although network management is required, it can be enabled through integrated, third-party software by the HCI software provider
• Local, DAS in each node, used in place of a storage array
• Enterprise-grade, HA and mobility, for both compute and storage
• Enterprise-grade data services (e.g., de-dupe, compression and erasure coding)
• Some level of choice of server and network hardware

The rapid growth of public cloud has transformed infrastructure. Typical IT organizations have some infrastructure in the public cloud, some in data centers and some at the edge. This brings hybrid cloud architectures to the fore. Now, almost every data center is a hybrid data center. Connectivity to and portability between on-premises infrastructures and the public cloud has become a more important design consideration for data centers.

As it has promised since it first appeared in the market, HCI software can be an enabling architecture for the hybrid cloud. Like public cloud infrastructure, it is software-defined and API-driven, meaning that it can be managed using the same tools and techniques used to manage the public cloud. From this management perspective, HCI software is driving the hybrid-cloud evolution that has become the underpinning of hyperconvergence as an architecture. Some vendors have even begun to provide cloud services in their own right.

Magic Quadrant for HCI Software

Vendor Strengths and Cautions

DataCore Software (niche player)
DataCore SANsymphony is used primarily for mission-critical, core IT and edge use cases. Its operations are focused in Europe, EMEA, as well as the Americas. Clients tend to be SMEs in the manufacturing, communications and government sectors. During the past 12 months, the cmpany has delivered scalability improvements, integration with backup software and improvements to DataCore Insight Services, its predictive analytics platform.

Strengths
• The firm is a pioneer in storage virtualization.
• It integrates hyperconverged storage with SANs and servers and supports the independent scaling of compute and storage resources.
• It provides a robust set of data services and price-competitive, scaled-down solutions, including a two-node, HA configuration for ROBO computer rooms, edge deployments and the data centers of SMEs.

Cautions
• It has limited brand awareness, and primarily operates in Europe and North America, which limits its ability to reach and support customers outside of those areas.
• It does not support one-click upgrades, making its upgrade process more complex than other vendors.
• Its HCI installations are generally smaller than those of its competitors, because the vendor has been focusing its HCI solution on midmarket enterprise needs.

HUAYUN Data Group (niche player)
Its Archer OS and Maxta HCI software solutions are focused primarily on cloud, core IT and VDI use cases. Its operations are focused mainly in China, and its clients tend to be SMEs in the education, healthcare, manufacturing and government sectors. Its HCI software solution has expanded its support to KVM and vSphere, and to a wide range of both x86 and ARM servers.

Strengths
• The company sells its HCI software solutions as a one-time perpetual license that can be appealing for more-cost-sensitive buyers, similar to those in some emerging markets.
• It can provide an HA solution with a 2-node cluster in an active/active configuration.
• It provides extended offerings for ArcherOS and Maxta. These include backup to HUAYUN Data Group’s cloud, a VDI solution featuring a multiple graphics processing unit mode, ArIQ for automated operational monitoring and Archer CloudSuite as a cloud management platform.

Cautions
• IT leaders considering ArcherOS and Maxta may find that sales and support capabilities vary by location, due to HUAYUN Data Group’s limited geographic footprint outside China.
• IT leaders seeking a solution for multiple geographies may be confused by HUAYUN Data Group’s use of both the Archer OS and Maxta brands for different countries.
• Customers looking for the highest global brand recognition may consider te firm to be insufficiently well-known to be invited to compete.

Microsoft (visionary)
Its Azure Stack HCI is a product in transition away from being embedded in the Windows OS. It is moving to one that is mainly focused on providing an HCI software solution that integrates on-premises and an edge service into the Azure cloud. Its operations are geographically diversified, and its clients tend to be midsize to large enterprises. This new version of Azure Stack HCI is offered as a subscription-based, cloud-managed solution, and it’s based on the version of Hyper-V and the HCI stack used in the Azure Cloud.

Strengths
• It provides organizations a comprehensive edge, core data center and cloud portfolio, with many common components and familiar management tools.
• This product offers common management with the Azure Cloud Platform and the ability to use Azure cloud services, such as Azure Site replication, Azure Cloud backup and Azure Kubernetes.
• Azure Stack HCI is supported on a broad range of vendor systems and is available through Microsoft’s rich selection of partners and system integrators (SIs).

Cautions
• Many organizations are unaware of Azure Stack HCI or confuse Azure Stack HCI with Azure Stack Hub, because it is insufficiently marketed and differentiated in Microsoft’s broad portfolio.
• The new Azure Stack HCI 20H2 is different from the Azure Stack HCI product that’s part of Windows Server Datacenter. Customers must choose which version they wish to use, with no clear way to transition between the two.
• The software company has yet to demonstrate that it can effectively market and deliver an HCI product that is not part of Windows Server.

Nutanix (leader)
It provides one of the most comprehensive HCI software capabilities and data services for on-premises and public cloud deployments. Its operations are geographically diversified, and its clients tend to be midsize and large enterprises and service providers. During the past 12 months, The firm has increased investment in its HCI sales organization, expanded support for server hardware OEMs, introduced Clusters enabling customers to achieve hybrid clouds, using HCI software and expanded as-a-service offerings. In addition, the vendor has expanded support for file, object and backup capabilities and has enhanced its application automation functionality.

Strengths
• HCI deployments have been growing globally. It has one of the largest and most loyal HCI customer installed bases. Gartner clients continually express satisfaction with Nutanix HCI software, ease of operations with Prism management and overall support services.
• HCI software and services are now supported in public cloud environments Clusters), providing hybrid cloud infrastructure, management and operations, from within a single, unified console. Furthermore, software licenses are fully portable between on-premises and public cloud deployments.
• Nutanix HCI supports multiple hypervisors and covers a variety of customer use cases via integrated native storage services (files and objects), database management (Era), application life cycle management (Calm), microsegmentation (Flow), backup (Mine) and DR (Leap) services.

Cautions
• Nutanix HCI is a premium solution, and might not be the most cost-effective solution for scaled-down and edge deployments.
• Clusters is a relatively nascent offering, with customer production deployments based on AWS public cloud.
• The firm continues to reinvest its HCI revenue streams to fund its growth and, as a result, is not yet profitable by GAAP standards. The company has appointed a new CEO in January 2021.

Pivot3 (niche player)
Its HCI software solution, Acuity, is designed for mission-critical, large-scale, video-based workloads, such as analytics, surveillance, VDI and visualization. Its operations are geographically diversified, and its clients tend to be midsize to large enterprises, educational institutions, and governments. The firm has enhanced its Intelligence Engine to provide auto-healing, quick node rebuild, and intelligent monitoring and analytics capabilities to address the data protection and system availability requirements for large-scale HCI deployments.

Strengths
• Acuity is well-suited to support large-scale, video-based workloads as mission-critical infrastructure for such use cases as security and surveillance.
• The vendor has successful HCI installations spanning airport, campus, casino, city, federal facility and transit facility environments.
• It delivers automation and AI technologies to facilitate management at scale for nontechnical users.

Cautions
• Firm’s HCI software solution may be less compelling than cheaper solutions for use cases that are not deemed to be mission-critical or are smaller in scale.
• Although the company can be purchased on a global basis through Lenovo, for customers seeking only brands with the highest global brand recognition, it may not be invited to compete.
• For IT leaders seeking solutions outside of video surveillance or VDI, Pivot3’s HCI may not be a shortlisted solution, because it is a lesser-known, but still viable, option beyond these two use cases.

Sangfor Technologies (niche player)
Its HCI software solution is designed for data center modernization, enterprise applications, cloud transformation, VDI, and backup and DR. Although geographically diversified across the AsiaPac region and EMEA, its operations are focused around China, and its clients tend to be midsize to large enterprises in core verticals. In particular, 2020 will focus on end-to-end security and support for ARM, as well as x86 platforms for private and managed cloud infrastructure.

Strengths
• With its own hypervisor, Sangfor HCI provides a secure, managed, cost-competitive alternative for SMEs.
• Organizations in China, where more than 80% of firm’s HCI sales occur, will benefit from a mature support organization. This can meet client needs in the local market, leveraging expansion and contact across APAC and EMEA.
• The vendor has developed an industry-vertical approach to the market. It creates partnerships with ISVs, deploying sales teams and developing knowledge of regulations to meet the needs of manufacturing, government, healthcare and education organizations across China and out.

Cautions
• Local support resources may be limited outside China and may not qualify across the rest of EMEA and APAC.
• The firm has limited integration with ecosystem partners outside of China, when compared with its larger international competitors.
• It has not been proved in edge locations with its offerings.

Scale Computing (niche player)
Its HC3 product is primarily focused on the edge, core-IT and VDI use cases. Its operations are primarily focused in the US and EMEA, with some penetration in Asia, its clients tend to be SMEs in retail, industrial, education, local government and healthcare. During the past 12 months, the company has expanded its support for server hardware OEMs, introduced the HE150 as a low-cost edge solution, and introduced integrated VDI and resilience solutions.

Strengths
• Offers extremely low-cost solutions that require limited hardware investment for edge locations. It provides resource-efficient, full-stack software, including Scale Computing’s own Kernel-M-based hypervisor.
• Is highly rated in peer reviews, with a large number of reviews and case studies.
• Is investing in ease of use and zero-touch management to enable customers to manage widely distributed infrastructure and applications.

Cautions
• Uses its own KVM-based hypervisor solution, so existing skills and licenses are not transferable.
• Has limited brand recognition. Customers that require a global brand may not include Scale Computing in their evaluations.
• Has limited offerings for organizations seeking a single-vendor, core-to-edge-to-cloud solution, with support for only one cloud vendor.

StarWind (niche player)
Its HyperConverged Appliance (HCA) is primarily focused on edge and mission-critical use cases for distributed data centers. Its operations are global, with a focus on North America and Europe, and its clients tend to be SMEs in education, government and healthcare sectors. Recently, the vendor has added support for all flash nodes, NVMe-oF over TCP and AI functionality delivered by StarWind ProActive Premium Support.

Strengths
• Has good HCI and storage expertise, and its full-featured product can address most use-case scenarios.
• Has one of the highest scores for overall customer satisfaction.
• Has introduced innovation in the hardware and software HCI layers, which makes it an attractive price/performance option for SMEs.

Cautions
• Is one of the smaller vendors in this research in terms of revenue and geographic coverage, which may limit its ability to gain traction in the global market.
• HCI deployments tend to be smaller than those of its competitors, because the vendor has been focusing on the midmarket enterprise needs.
• Does not offer preintegrated HCI bundling by major server OEM manufacturers.

StorMagic (niche player)
Its SvSAN product is primarily focused on edge and mission-critical use cases for distributed data centers. Its operations are geographically diversified, with a focus on North America and Europe, and its clients tend to be midsize to large enterprises in retail, manufacturing and government sectors. StorMagic is now part of HPE Complete program as a replacement for HPE StoreVirtual software. Recently, it introduced multi-site, push-button software deployment, a subscription pricing model, and cloud-enabled Witness-as-a- Service and Key Management-as-a-Service.

Strengths
• Is gaining steady traction for the edge data center use case through the OEM’s relationship with HPE and Lenovo.
• Gartner clients find StorMagic to be one of the most cost-effective solutions for edge, ROBO or scaled-down HCI deployments.
• Enables customers to use any server hardware, support multiple hypervisors and heterogeneous nodes, as well as the ability to add compute-only nodes, without additional licenses.

Cautions
• Is lacking brand recognition, especially outside North America and Europe, which limits its ability to reach and support customers in those areas.
• Is not designed for large core data centers or cloud deployments, and it does not have all of the enterprise HCI features, such as data reduction, snapshots, remote replication, hybrid cloud integration and AI functions.
• Some customers have identified slowness and inefficiencies in support service capabilities.

VMware (leader)
Its VMware vSAN is mainly focused on providing an HCI software solution as a part of an extensive product portfolio that extends into virtual application management on-premises, at the edge and in the cloud. Its operations are geographically diversified, and its clients tend to be midsize to large enterprises. VMware has expanded its HCI-as-a-Service capabilities from AWS and IBM Cloud to enable customers to run VMware HCI in six of the largest hyperscale environments.

Strengths
• Has jointly engineered hybrid cloud support with public cloud providers, including AWS, Azure, GCP, Oracle Cloud, Alibaba Cloud and IBM Cloud to support HCI deployments in those public cloud environments supported by a service consumption model.
• Significant software installed base ensures that there is a large pool of I&O talent with VMware management tools skills from which to hire.
• Is an $11 billion company (based on its FY20 results). It has a global reach, so long-term support risks related to corporate viability are relatively low, compared with smaller providers.

Cautions
• Offerings are among the most expensive in the market, so they are less competitive when cost is a primary concern.
• IT leaders who purchase vSAN as software may find only the configuration of vSAN to be challenging, because of the multiple network and storage design considerations that must be taken into account.
• VMware vSAN does not support other hypervisors beyond ESX.

Vendors Dropped

• Cisco due to changes in the inclusion criteria, which exclude HCIS solutions (those will be covered in other Gartner publications).
• Dell EMC due to changes in the inclusion criteria, which exclude HCIS solutions (those will be covered in other Gartner publications).
• HPE due to changes in the inclusion criteria, which exclude HCIS solutions (those will be covered in other Gartner publications).
• Huawei due to changes in the inclusion criteria, which exclude HCIS solutions (those will be covered in other Gartner publications).
• Red Hat due to a narrowing of its focus to only 3 use cases.

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