WW Enterprise External OEM Storage Systems Revenue Down 8% in 1Q20

According to the International Data Corporation‘s Worldwide Quarterly Enterprise Storage Systems Tracker, global market revenue for enterprise external OEM storage systems declined 8.2% Y/Y to $6.5 billion during 1Q20.

Total external OEM storage capacity shipped was up 3.0% Y/Y to 17.3EB during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters grew at 6.9% Y/Y to $4.9 billion in 1Q20, although capacity shipped decreased by 20.2% Y/Y to 54.8EB.

Total capacity shipments for the market (External OEM + ODM Direct + Server-Based Storage) declined 18.1% to 92.7EB.

“The external OEM market faced stiff headwinds during the first quarter as enterprises across the world had operations impacted by the global pandemic,” said Sebastian Lagana, research manager, infrastructure platforms and technologies. “ODMs once again generated growth, taking advantage of increasing spend from hyperscalers – demand that we anticipate will remain solid through the first half of 2020 as many enterprises continue to default to remote work, individuals and employees leverage cloud-based collaboration tools, and content delivery networks ensure support for elevated levels of streaming entertainment consumption requirements.“

Enterprise External OEM Storage Systems Results, by Company
Dell Technologies was the largest external enterprise storage systems supplier during the quarter, accounting for 33.2% of WW revenue. NetApp placed second with a revenue share of 11.0%, followed by HPE/New H3C Group at 9.9%. Hitachi held the fourth position, while IBM, Pure Storage, and Huawei all tied* for the fifth position.

Top 5 Companies, WW Enterprise External OEM Storage Systems Market, 1Q20
(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 is reporting market share on a global level for HPE as “HPE/New H3C Group” starting from 2Q16.

Flash-Based Storage Systems
The total AFA market generated $2.8 billion in revenue during the quarter, up 0.4% Y/Y. The hybrid flash array market was worth nearly $2.5 billion in revenue, down 11.5% from 1Q19.

Regional External Storage System
On a geographic basis, Latin America grew the fastest of any region during the quarter, up 19.9% Y/Y, while Canada was the only other region to generate growth, up 6.4%. All other regions declined during the quarter, with Japan down 4.3%, China down 7.8%, and AsiaPac (excluding Japan and China) declining 8.5%. The United States was down 10.0% in 1Q20 and EMEA declined 10.2% in aggregate.

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.