WW Enterprise External OEM Storage Systems Revenue Declined 5% Y/Y in 2Q20

According to the International Data Corporation‘s Worldwide Quarterly Enterprise Storage Systems Tracker, global market revenue for enterprise external OEM storage systems declined 5.0% Y/Y to just under $6.3 billion during 2Q20.

Total external OEM storage capacity shipped was up 5.1% Y/Y to 17.1EB during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters grew 64.1% year over year to $7.0 billion in 2Q20, while capacity shipped grew yearly 122.1% to 74.8EB Total capacity shipments for the market (external OEM + ODM direct + server-based storage) increased 59.7% to 124.6EB.

“The external OEM market was down once again during the second quarter of the year as Covid-19 related impacts spread across the globe and hamstrung enterprise spending on external storage systems outside of China,” said Sebastian Lagana, research manager, infrastructure platforms and technologies. “Aside from China, the ODMs were once again a bright spot in the market as cloud builders and hyperscalers ramped up capacity during the quarter in order to support a strong demand environment from both corporate and consumer markets. While enterprise appetite for infrastructure provision from large cloud service providers remains a core driver of the success of ODMs, consumer demand for services from content delivery networks and collaboration tools remains robust and is driving purchasing from a long tail of providers.“

Enterprise External OEM Storage Systems Results, by Company
Dell was the ≠1 external enterprise storage systems supplier during the quarter, accounting for 27.0% of WW revenue. HPE/New H3C group and NetApp finished the quarter in a statistical tie* ≠2 with revenue shares of 10.5% and 9.8% respectively, followed by IBM and Huawei tied* for ≠4 at 8.1% and 7.7% of quarterly market share.

Top 5 Companies, WW Enterprise External OEM Storage Systems Market, 2Q20
(in $ million)

Notes:
* Statistical tie when there is a difference of 1% or less in the share of revenues or unit shipments among 2 or more vendors.
a Dell represents the combined revenues for Dell and EMC.
b Due to the existing joint venture between HPE and the New H3C Group, reporting market share on a global level for HPE as HPE/New H3C Group starting from 2Q16.

Top 5 Companies, WW Enterprise External OEM Storage Systems Market, Second Quarter of 2020, Market Share

Flash-Based Storage Systems Highlights
The total AFA market generated $2.5 billion in revenue during the quarter, up 7.7% Y/Y. The hybrid flash array market was also worth $2.5 billion in revenue, but was down 8.7% from 2Q19.

Regional External Storage System Highlights
China grew the fastest of any region during the quarter, up 18.3% Y/Y, with Canada the only other region to generate growth during the quarter, up 1.1%. All other regions declined during the quarter, with Japan down 4.7% and EMEA declining 7.8% in aggregate. The United States was down 8.7%, AsiaPac (excluding Japan and China) declined 14.7%, and Latin America was down 18.7%.

Taxonomy Notes
IDC defines an enterprise storage system 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 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.