WW External OEM Storage Systems Market Revenue Grew 1.3% Y/Y in 3Q19
All biggest companies down but IBM and Huawei
This is a Press Release edited by StorageNewsletter.com on December 6, 2019 at 2:18 pmAccording to the International Data Corporation‘s Worldwide Quarterly Enterprise Storage Systems Tracker, global spending on enterprise external OEM storage systems grew 1.3% Y/Y to $6.6 billion during 3Q19.
Total external OEM storage capacity shipments were up 6.8% Y/Y to 17.3EB during the quarter.
Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters declined 6.8% Y/Y in 3Q19 to $5.8 billion.
Total market capacity shipments (external OEM + ODM direct + server-based storage) declined 13.9% to 98.8EB.
“While market growth of any kind is always a welcomed sight, we see mixed results this quarter,” said Greg Macatee, research analyst, infrastructure platforms and technologies. “Strong double-digit annual growth of AFA sales was required to offset declines in the hybrid flash array and HDD-only markets. Geographic results were also mixed with strong revenue increases in AsiaPac offset by declining revenues in the Americas and EMEA markets.”
Enterprise External OEM Storage Systems Results, by Company
Dell Technologies was the largest enterprise external OEM storage systems supplier during the quarter, accounting for 31.5% of WW revenue. NetApp and HPE/New H3C Group tied* for second with 9.9% and 9.6% of the market, respectively. Huawei, Hitachi, and IBM tied* for the fourth position with revenue shares of 7.0%, 6.2%, and 6.0%, respectively. Despite growing and gaining market share during the third quarter, Pure Storage and Lenovo did not finish among the top 5 companies.
Top 5 Companies, WW Enterprise External OEM Storage Systems Market, 3Q19
(revenue in $ million)
Notes:
* IDC declares a statistical tie in the WW enterprise external OEM 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 2Q16.
Flash-Based Storage Systems Highlights
The total AFA market generated $2.58 billion in revenue during the quarter, up 11.7% Y/Y. The hybrid flash array market was worth slightly less than $2.54 billion in revenue, down 1.7% from 3Q18.
Regional External Storage System Highlights
On a geographic basis, AsiaPac (excluding Japan) grew the fastest of any region, up 12.5% Y/Y. Japan grew 2.5%; Europe, the Middle East, and Africa (EMEA) was down 1.0%; and the Americas declined 2.7%. China as a standalone country grew 20.4% Y/Y in 3Q19.
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.
Comments
For 2CQ19, this global market was evaluated by IDC at $6.326 million (-0.8% Y/Y) for former quarter, which means a quarterly growth of 4%.
It's not the first time we noticed a difference between IDC results and official financial figures of companies even if they don't embrace exactly the same business.
Here, for example, IDC estimates the value of IBM external OEM storage systems at $398 million for 3Q19 up 2% Y/Y. For the same 3-month period, Big Blue announced its storage hardware revenue declining, for 5 quarters in a row, and being down 4% and estimated at around $434 million.
For Dell, global storage revenue is officially announced at $4.2 billion, up 7% Y/Y, to be compared with $2.1 billion and -1% for IDC.
Pure Storage, in AFA only and recording sales of $429 million in 3FQ19 (with support subscription revenue), is not included in IDC top 6 companies, even if this figure is here greater for Hitachi and IBM.
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