What is hyperconverged infrastructure?

A woman discussing through a video call

Hyperconverged infrastructure explained

Hyperconverged infrastructure (HCI) is a software-defined data center approach to infrastructure that uses virtualization to combine compute, networking and storage components into a single system managed by a software layer.

Whereas a traditional data center uses different pieces of hardware for various functions, hyperconverged systems use virtual machines (VMs) to create abstracts of each component, all contained within commercially available commodity hardware. In this way, IT infrastructure solutions that use hyperconvergence can streamline data center management and operations for an on-premises, high-performance and cost-effective alternative to traditional data centers, or public cloud computing.

The rising demand for data centers to accelerate business growth has placed a greater need for hyperconverged infrastructure. In a report from Fortune Business Insights, the global HCI market size was valued at USD 9.66 billion in 2023. In 2024, it is projected to grow from USD 11.98 billion to USD 61.49 billion by 2032 (with a compound annual growth rate (CAGR) of 22.7%).1

The latest tech news, backed by expert insights

Stay up to date on the most important—and intriguing—industry trends on AI, automation, data and beyond with the Think newsletter. See the IBM Privacy Statement.

Thank you! You are subscribed.

Your subscription will be delivered in English. You will find an unsubscribe link in every newsletter. You can manage your subscriptions or unsubscribe here. Refer to our IBM Privacy Statement for more information.

Hyperconverged versus converged infrastructure

To gain a better understanding of hyperconverged infrastructure, it helps to compare the differences between hyperconverged infrastructure (HCI) and converged infrastructure (CI).

Converged infrastructure

To combine compute, networking and storage features into one manageable system, data centers that employ a converged methodology integrate various components. These elements can include servers, processors, storage and networking into singular, pre-engineered solutions consisting of modular or purpose-built hardware.

CI systems do simplify deployment and management compared to non-converged systems, but fail to take full advantage of software virtualization. Although some elements of converged infrastructure are combined, these systems still require multiple pieces of unique hardware (which can be specialized and expensive) and IT support to integrate and manage the system.

Hyperconverged infrastructure

Hyperconverged systems take convergence a step further. Instead of integrating various specialized hardware components, hyperconverged systems create virtual versions of each data center component (compute, storage and networking) within an industry-standard x86 server.

Hyperconverged infrastructure solutions include Nutanix Cloud Platform (NCP), Dell EMC VxRail, IBM Fusion HCI, VMware vSAN and Microsoft Azure HCI Stack.

AI Academy

Achieving AI-readiness with hybrid cloud

Led by top IBM thought leaders, the curriculum is designed to help business leaders gain the knowledge needed to prioritize the AI investments that can drive growth.

Key components of hyperconverged infrastructure

Both hyperconverged infrastructure (HCI) and more traditional forms of IT infrastructure, such as converged infrastructure (CI) and non-converged infrastructure, use different components to enable smooth business operations. However, while previous infrastructure models use different physical hardware components to accomplish different tasks, HCI hardware creates virtualized abstracts of each component within a single piece of hardware.

The power, storage (for example, NAS, SAN, NVMe-based flash storage) and capacity of HCI hardware are scalable and cloud native. HCI can scale up to increase total infrastructure resources or scale out to increase individual component performance within a single piece of hardware.

HCI virtualizes traditional infrastructure components and also adds a few new components to enable hyperconvergence.

The main software components of HCI include: 

  • Hypervisor: A hypervisor is a specialized software layer that manages the workloads of hyperconverged systems by creating virtual machines (VMs), which function like digital representations of unique hardware components.
  • Nodes: Within an HCI environment, a node is a self-contained unit comprising compute, storage and networking resources. Nodes work together to create a unified, virtualized IT infrastructure environment.
  • Compute: Compute components run VMs and apps within hyperconverged platforms. 
  • Software-defined networking (SDN): The networking component of each node uses software-defined networking (SDN) to enable communication between nodes and facilitate data transfer within the HCI.

Benefits of hyperconverged infrastructure

While hyperconverged infrastructure (HCI) might not be suitable for every application, it does offer many benefits over more traditional types of IT infrastructure. Notably, HCI increases IT efficiency by automatically pooling resources and dynamically allocating those resources on demand.

Through automation, HCI can help reduce the burden on IT teams and eliminate siloed or manual operations while maximizing resource usage. Also, HCI simplifies system upgrades and maintenance.

Some additional advantages offered by HCI include:

  • Scalability
  • Data protection
  • Cost-effectiveness
  • Automation
  • Compatibility

Scalability

HCI solutions are inherently scalable and can scale up or scale out. This feature allows organizations to add entire nodes or increase compute, networking or storage resources to meet the demands of evolving workloads and changing business needs.

Data protection

By centralizing data replication, hyperconverged solutions offer improved data resiliency and data security through automation. HCI also optimizes disaster recovery speeds and minimizes downtime.

Cost-effectiveness

HCI offers several ways to lower costs by streamlining data center infrastructure without specialized HCI appliances, reducing total cost of ownership (TCO) and operational expenses.

Automation

HCI uses automation to simplify provisioning and management, reducing the burden on IT teams.

Compatibility

HCI avoids the challenges of hardware compatibility by combining all major data center components into a centralized system.

Use cases for hyperconverged infrastructure

The transformative power of hyperconverged infrastructure (HCI) offers ample potential benefits to numerous sectors. A highly adaptable form of IT infrastructure, HCI can be applied across a wide range of applications and is suitable for most organizations. It offers an agile, efficient and scalable IT solution capable of handling heavy workloads and large amounts of data storage.

The ability to efficiently simplify infrastructure while accommodating organizational growth has made HCI a leading choice across a diverse range of use cases. Some of these applications range from government and civil service operations to large-scale public works and utilities.

  • Healthcare
  • Financial services
  • Retail
  • Manufacturing

Healthcare

In the challenging field of healthcare, HCI has become a cornerstone of modernized and optimized data center infrastructure. By converging disparate systems, HCI streamlines electronic health record management while also ensuring compliance within a strict regulatory environment. HCI systems make safeguarding sensitive patient data easier, while also making that data easier to store and access.

For educational institutions studying the field of medicine, HCI allows students, faculty and researchers seamless access to virtual learning environments powered by high-performance infrastructure.

Financial services

Elsewhere, HCI has also emerged as a valuable resource in the high-stakes financial services sector. Favored for its scalability and agility, financial institutions are using HCI to quickly deploy critical applications, including online banking platforms, trading systems and risk management tools.

Whereas scaling traditional forms of infrastructure can carry increased costs both in terms of money and time, HCI enhances operational efficiency for quick scalability without expensive, purpose-built hardware.

Retail

Retail is another sector taking advantage of HCI to integrate various disparate systems. HCI’s dynamic resource allocation allows retailers to dynamically manage complex tasks like inventory management, customer relationship management (CRM) and supply chain management (SCM). It also helps merge online and brick-and-mortar business operations.

With the power of HCI, retailers can better deliver personalized customer experiences to efficiently convert more sales with less wasted effort and energy.

Manufacturing

HCI has also proved to be highly valuable in the manufacturing sector, where streamlining demanding tasks like production, inventory management and logistics is a welcome benefit. HCI provides manufacturers with an optimized solution that offers increased resource efficiency, capability and scalability well suited to meet fluctuating market conditions.

General business uses

Beyond these key sectors, the versatile nature of HCI excels in several modern business applications that provide value across many different types of industries. Some IT environments and general business applications and IT environments that benefit from HCI’s efficient adaptability include:

  • Remote office or branch office (ROBO): HCI supports ROBO environments—office or branch locations located away from the organization’s headquarters or main office. Through a centralized management interface, HCI helps reduce the need for an onsite IT staff and support resources at remote locations.
  • High-performance applications: HCI systems are designed to accommodate even the most demanding workloads. Tasks requiring high-performance hardware—such as data analytics or advanced simulations—benefit from HCI’s ability to provide flexible compute and storage resources. 
  • Edge computing: Compact, scalable and virtualized by nature, HCI is well suited for developing edge computing infrastructure, which seeks to decrease latency by processing cloud services physically closer to the actual user.
  • Multicloud environments: CI’s component consolidation is highly compatible with various cloud environments. This feature allows organizations to adopt a hybrid cloud or multicloud strategy incorporating on-premises private cloud infrastructure and public cloud services.
  • Artificial intelligence (AI): HCI supports artificial intelligence (AI) use cases by providing a scalable, simplified platform for AI workloads, encompassing training, management and deployment. By integrating compute, storage and networking resources into a single system, it enables the processing of large amounts of data in real or near real time for large language models (LLMs) and other AI applications.

 

 

Authors

Josh Schneider

Staff Writer

IBM Think

Stephanie Susnjara

Staff Writer

IBM Think

Ian Smalley

Staff Editor

IBM Think

Related solutions
IBM Storage Fusion

A hybrid‑cloud, container‑native platform delivering scalable storage, data protection, and unified management for modern Kubernetes workloads.

Explore IBM Storage Fusion
Infrastructure modernization solutions

Modernize servers, storage, and applications for flexible, secure, and hybrid‑cloud ready IT.

Explore infrastructure modernization solutions
IT infrastructure library and consulting services

IBM Technology Expert Labs provides infrastructure services for IBM servers, mainframes and storage.

Explore IT infrastructure library services
Take the next step

Modern, cloud‑native storage and data management, plus updated infrastructure for a flexible, scalable, and hybrid‑cloud ready IT foundation.

Explore IBM Storage Fusion Explore infrastructure modernization solutions
Footnotes

1 Hyper-converged Infrastructure Market Size, Fortune Business Insights, November 10, 2025.