WW Enterprise Storage Systems Market Revenue Down 0.6% in 1CQ19 – IDC

According to the International Data Corporation‘s Worldwide Quarterly Enterprise Storage Systems Tracker, vendor revenue in the WW enterprise storage systems market decreased 0.6% Y/Y to $13.4 billion during 1CQ19.

Total capacity shipments were up 14.1% year over year to 114.2EB during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters declined 5.3% Y/Y in 1CQ19 to $2.95 billion. This represents 22.1% of total enterprise storage investments during the quarter.

Sales of server-based storage decreased 6.6% Y/Y to just over $3.6 billion in revenue. This represents 26.6% of total enterprise storage investments. The external storage systems market revenue totaled nearly $6.9 billion during the quarter, up 5.0% from 1CQ18.

“First quarter 2019 results are an acceleration of the slowdown we noted last quarter, with declining ODM and internal (server-based) storage the primary drivers of market contraction.” said Sebastian Lagana, research manager, infrastructure platforms and technologies, IDC. “OEM vendors selling dedicated storage arrays still generated growth during the quarter, although slowing flash-centric array growth indicates that the opportunity for existing install-base upgrades is beginning to wane.”

Total Enterprise Storage Systems Market Results, by Company
Dell Technologies was the largest supplier for the quarter, accounting for 22.2% of total WW enterprise storage systems revenue and declining 1.0% Y/Y. HPE/New H3C Group was the second largest supplier with an 17.3% share of revenue on a Y/Y contraction of 1.6%. NetApp generated a 6.7% share of total revenue, holding the ≠3 position during the quarter. Hitachi held the fourth position at 3.6% of the market, while Lenovo, IBM, Pure Storage, Huawei, Fujitsu and Inspur all statistically tied* for the ≠5 position with shares of 2.5%, 2.5%, 2.2%, 2.1%,1.9%, and 1.9% respectively. As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 22.1% of global spending during the quarter, down 5.3% against 1Q18.

Top 5 Companies, WW Total Enterprise Storage Systems Market, 1CQ19
(revenue in $million)

External Enterprise Storage Systems Results, by Company
Dell Technologies was the largest external enterprise storage systems supplier during the quarter, accounting for 34.4% of WW revenue. NetApp was second with 13.0% of the market, followed by HPE/New H3C Group with 10.9%. Hitachi held the fourth position with 6.6% of the external storage market, while IBM and Pure Storage finished in a statistical tie* for fifth with 4.7% and 4.2% market share, respectively.

Top 5 Companies, WW External Enterprise Storage Systems Market, 1CQ19
(revenue in $million)

Notes:
* IDC declares a statistical tie in the worldwide enterprise storage systems market when there is a difference of 1% or less in the share of revenues or unit shipments among two or more vendors.
a Dell Technologies 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 market share on a global level for HPE as HPE/New H3C Group starting from 2CQ16.

Flash-Based Storage Systems Highlights
The total AFA market generated just over $2.47 billion in revenue during the quarter, up 17.5% Y/Y. The hybrid flash array market was worth slightly more than $2.81 billion in revenue, up 8.6% from 1CQ18.

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.