Hyper-Converged Infrastructure Market Trends

Growth Drivers

• Rising adoption of hybrid and multi-cloud strategies: Government agencies, besides businesses, play a crucial role in the growth of the hybrid and multi-cloud infrastructure. As per the report by the World Bank, published in March 2025, developing economies are ubiquitously applying cloud-first policies. The use of hybrid and multi-cloud deployments for government purposes is also increasing.  Market players are relying on HCI for the smooth integration of the cloud platforms and optimizing resource allocation. Prominent companies have incorporated HCI-enabled platforms that help in the seamless deployment of the hybrid or multi-cloud services. This allows companies to handle workloads in cloud infrastructure with higher efficiency.
• Rising emphasis on data security and compliance: Rising cases of cybersecurity globally is a key factor expected to fuel market growth in the coming years. According to the Cyber Security Breaches Survey 2024, around 50% businesses and 32% of charities in the UK alone witnessed cyberattacks in the last 12 months. Similarly, as disclosed by the CSIS in December 2024, cyberattacks on government entities surged by 138% government between 2019 and 2023. HCI systems render state-of-the-art security features and access control, adhering to the National Institute of Standards and Technology framework. Enterprises and governments need to align their IT environment with well-known frameworks and include HCI’s security features to shield data. 

Top 10 Countries in Terms of Cybercity Measures Implemented by Central Governments

Source: NCSI

• Rising adoption of AI and automation technologies: Businesses are consistently adopting AI-enabled HCI solutions to resolve potential issues associated with operational efficiency and business process automation. Key players in the market are also active in the development of such HCI solutions.  For example, Hitachi Vantara and Cisco collaboratively launched a new co-engineered solution in February 2025 for Red Hat Shift, a leading cloud application platform. The HCI solution is incorporated with the compute and networking systems of Cisco and Virtual Storage Platform (VSP) arrays of Hitachi Vantara. 

Challenges

• Vendor lock-in concerns: The dependence on a particular vendor for HCI solutions raises concerns for long-term costs and flexibility. Various organizations are apprehensive about reduced flexibility from incorporating HCI solutions. Key companies utilize closed architecture and restrict any type of interoperability with 3^rd party solutions. Also, switching vendors may include exorbitant retraining and relicensing. Sanctions that have been imposed on certain countries, due to geopolitical tensions, including war, have restricted the vendor availability of HCI solutions there.