WW Enterprise External OEM Storage Systems Market Revenue Declined 0.1% Y/Y in 4Q19 – IDC

According to the International Data Corporation‘s Worldwide Quarterly Enterprise Storage Systems Tracker, global spending on enterprise external OEM storage systems declined 0.1% year Y/Y to $7.9 billion during 4Q19).

Total external OEM storage capacity shipments were up 9.4% Y/Y to 21.2 exabytes during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters grew rapidly at 38.2% Y/Y to $6.5 billion in 4Q19 while capacity shipped increased 64.5% Y/Y to 70.8EB.

Total capacity shipments for the market (external OEM + ODM direct + server-based storage) grew 30.8% to 120.2EB.

“The external OEM market remained essentially flat this quarter while ODM Direct achieved its strongest growth in five quarters,” said Paul Maguranis, senior research analyst, infrastructure platforms and technologies, IDC. “ODMs witnessed double-digit year-over-year growth this quarter for revenue, units, and capacity shipped and accounted for 58.9% of capacity shipped for the entire storage market, up from 46.8% this time last year.”

Enterprise External OEM Storage Systems Results, by Company
Dell Technologies was the largest external enterprise storage systems supplier during the quarter, accounting for 27.6% of WW revenue. HPE/New H3C Group and IBM tied* for second with revenue shares of 10.1% and 9.1%, respectively. NetApp and Huawei captured the fourth and fifth positions with market shares of 8.9% and 7.8% respectively, edging Hitachi and Pure Storage out of the top 5.

Top 5 Companies, WW Enterprise External OEM Storage Systems Market, 4Q19
(revenues in $million)

Notes:
* There is a statistical tie in the WW 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 is 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 $3.23 billion in revenue during the quarter, up 8.4% Y/Y. The hybrid flash array market was worth a little more than $3.04 billion in revenue, down 2.8% from 4Q18.

Regional External Storage System Highlights
On a geographic basis, Japan grew the fastest of any region, up 13.1% Y/Y in 4Q19. AsiaPac (excluding Japan) also saw double-digit growth (10.8%), led by China’s 14.6% Y/Y growth. EMEA and the Americas were both down 4.2% Y/Y.

Taxonomy Notes
Enterprise storage system is defined as a set of storage elements, including controllers, cables, and (in some instances) HBAs, associated with 3 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.