Storage Systems Market Grew 14% in 2Q18 From 2Q17, Pushed by AFAs - Dell'Oro Group

According to Group Storage Systems Quarterly Report from Dell’Oro Group, a source for market information about the telecommunications, networks, and data center IT industries, the storage systems market grew 14% in 2Q18 on a year-over-year basis.

External storage systems revenue is on track to grow this year.

“2Q18 was another great quarter for the storage systems market,” said Baron Fung, senior business analysis manager, Dell’Oro Group. “We estimate storage revenue grew 14% year-over-year in 2Q18 and 15% for the first half of the year. All of this growth was due to higher demand for internal storage systems – servers with large amounts of drive capacity – and AFAs. We estimate AFAs revenue increased 33% this quarter.“

Additional highlights from the report:

External storage, which had been in a multi-year decline, posted a second consecutive quarter of strong growth in 2Q18 driven by the high demand for AFAs and moderating decline of disk and hybrid arrays.
Dell EMC continued to hold the highest external storage market share in the quarter, and gained the second most market share (behind NetApp) year-over-year with a 15% revenue increase in the latest quarter.

The $40 billion storage systems industry
is experiencing many disruptive changes:
• Unified data center infrastructure is helping to accelerate the transition to IP-based storage
• Enterprises are changing their business models and shifting to public and private cloud data centers
• The cloud is demanding new and different storage requirements to those of the classic enterprise
• Equipment vendors are facing challenges to their traditional product lines and feature sets
• The growth trend in flash storage is bringing disruption to traditional storage systems

Read also:
WW Enterprise Storage Systems Market Revenue Up 21% From 2Q17 to 2Q18 at $13 Billion – IDC
Dell largest supplier with 19% share and growing 27% Y/Y
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