WW Enterprise Storage Market Down 0.5% Y/Y in 1Q17 at $9.2 Billion – IDC

Total worldwide enterprise storage systems factory revenue was down 0.5% year over year and reached $9.2 billion in 1Q17, according to the International Data Corporation‘s Worldwide Quarterly Enterprise Storage Systems Tracker.

Total capacity shipments were up 41.4% year over year to 50.1EB during the quarter.

Revenue growth increased within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacenters. This portion of the market was up 78.2% year over year to $1.2 billion.

Sales of server-based storage were down 13.7% during the quarter and accounted for $2.7 billion in revenue.

External storage systems remained the largest market segment, but the $5.2 billion in sales represented a decline of 2.8% year over year.

“The enterprise storage market closed out the first quarter relatively flat, yet adhered to a familiar pattern,” said Liz Conner, research manager, storage systems. “Spending on traditional external arrays continues to slowly shrink while spending on all-flash deployments once again posted strong growth and helped to drive the overall market. Meanwhile the very nature of the hyperscale business leads to heavy fluctuations within the market segment, displaying solid growth in 1Q17.”

1Q17 Total Enterprise Storage Systems Market Results By Company
Dell held the number 1 position within the total worldwide enterprise storage systems market, accounting for 21.5% of spending. HPE held the next position with a 20.3% share of revenue during the quarter. HPE’s share and year-over-year growth rate includes revenues from the H3C joint venture in China that began in May of 2016; as a result, the reported HPE/New H3C Group combines storage revenue for both companies globally. NetApp finished third with 8.0% market share. Hitachi and IBM finished in a statistical tie* for the fourth position, each capturing 5.0% of global spending. As a single group, storage systems sales by ODMs selling directly to hyperscale datacenter customers accounted for 13.2% of global spending during the quarter.
 

Top 5 Vendor Groups, WW Total Enterprise Storage Systems Market, 1Q17
(revenues in $ million)

(Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 8, 2017) 

1Q17 External Enterprise Storage Systems Results, by Company
Dell was the largest external enterprise storage systems supplier during the quarter, accounting for 27.2% of worldwide revenues. NetApp finished in the number 2 position and HPE number 3 with 14.0% and 9.7% of market share, respectively. Hitachi and IBM rounded out the top 5 in a statistical tie* for the number 4 with revenue shares of 8.6% and 8.4%, respectively.
 

Top 5 Vendors Groups, WW External Enterprise Storage Systems Market, 1Q17
(revenues in $ million)

(Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 8, 2017)
 

Notes:
* IDC declares a statistical tie in the worldwide enterprise storage systems market when there is less than one% difference in the revenue share of two or more vendors.
^a Dell Inc represents the combined revenues for Dell and EMC.
^b Due to the existing joint venture between HPE and the New H3C Group, IDC will be reporting external market share on a global level for HPE as HPE/New H3C Group starting from 2Q16 and going forward.

WW Total External Enterprise Storage Systems Market
Top 5 vendors 1Q16-1Q17 (shares based on revenue)

Flash-Based Storage Systems Highlights
The total all-flash array (AFA) market generated almost $1.4 billion in revenue during the quarter, up 75.7% year over year. The hybrid flash array (HFA) segment of the market continues to be a significant part of the overall market with $2.0 billion in revenue and 22.0% of the total market share.

Taxonomy Notes
IDC defines an enterprise storage system as a set of storage elements, including controllers, cables, and (in some instances) HBAs, associated with three or more disks. A system may be located outside of or within a server cabinet and the average cost of the disk storage systems does not include infrastructure storage hardware (i.e. switches) and non-bundled storage software.

The information in this quantitative study is based on a branded view of the enterprise storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer. OEM (sales are not included in this study.

This report is a quantitative tool for analyzing the global disk storage market on a quarterly basis. The tracker includes quarterly shipments and revenues (both customer and factory), terabytes, $/gigabyte, gigabyte/unit, and average selling value. Each criteria can be segmented by location, installation base, OS, company, family, model, and region.