FRAMINGHAM, Mass. — (BUSINESS WIRE) — June 8, 2017 — Total worldwide enterprise storage systems factory revenue was down 0.5% year over year and reached $9.2 billion in the first quarter of 2017 (1Q17), according to the International Data Corporation ( IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were up 41.4% year over year to 50.1 exabytes during the quarter. Revenue growth increased within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacenters. This portion of the market was up 78.2% year over year to $1.2 billion. Sales of server-based storage were down 13.7% during the quarter and accounted for $2.7 billion in revenue. External storage systems remained the largest market segment, but the $5.2 billion in sales represented a modest decline of 2.8% year over year.
"The enterprise storage market closed out the first quarter relatively flat, yet adhered to a familiar pattern," said Liz Conner, research manager, Storage Systems. "Spending on traditional external arrays continues to slowly shrink while spending on all-flash deployments once again posted strong growth and helped to drive the overall market. Meanwhile the very nature of the hyperscale business leads to heavy fluctuations within the market segment, displaying solid growth in 1Q17."
1Q17 Total Enterprise Storage Systems Market Results, by Company
Dell
Inc held the number 1 position within the total worldwide enterprise
storage systems market, accounting for 21.5% of spending. HPE held the
next position with a 20.3% share of revenue during the quarter. HPE's
share and year-over-year growth rate includes revenues from the H3C
joint venture in China that began in May of 2016; as a result, the
reported HPE/New H3C Group combines storage revenue for both companies
globally. NetApp finished third with 8.0% market share. Hitachi
and IBM finished in a statistical tie* for the fourth position, each
capturing 5.0% of global spending. As a single group, storage systems
sales by original design manufacturers (ODMs) selling directly to
hyperscale datacenter customers accounted for 13.2% of global spending
during the quarter.
|
Top 5 Vendor Groups, Worldwide Total Enterprise Storage Systems
Market, First Quarter of 2017
|
|||||||||||
| Company |
1Q17
|
1Q17 Market
|
1Q16
|
1Q16 Market
|
1Q17/1Q16
|
||||||
| 1. Dell Inca | $1,968.5 | 21.5% | $2,304.2 | 25.0% | -14.6% | ||||||
| 2. HPE/New H3C Group b | $1,865.0 | 20.3% | $2,289.9 | 24.8% | -18.6% | ||||||
| 3. NetApp | $731.6 | 8.0% | $645.5 | 7.0% | 13.3% | ||||||
| T4. Hitachi* | $460.1 | 5.0% | $508.0 | 5.5% | -9.4% | ||||||
| T4. IBM* | $455.3 | 5.0% | $448.5 | 4.9% | 1.5% | ||||||
| ODM Direct | $1,212.9 | 13.2% | $680.5 | 7.4% | 78.2% | ||||||
| Others | $2,478.6 | 27.0% | $2,344.4 | 25.4% | 5.7% | ||||||
| All Vendors | $9,172.0 | 100.0% | $9,221.0 | 100.0% | -0.5% | ||||||
| Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 8, 2017 | |||||||||||
Notes:
* – IDC declares a statistical tie in the
worldwide enterprise storage systems market when there is less than one
percent difference in the revenue share of two or more vendors.
a
– Dell Inc 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 external market share on a global level for HPE as
"HPE/New H3C Group" starting from 2Q 2016 and going forward.
1Q17 External Enterprise Storage Systems Results, by Company
Dell
Inc was the largest external enterprise storage systems supplier during
the quarter, accounting for 27.2% of worldwide revenues. NetApp finished
in the number 2 position and HPE in the number 3 position with 14.0% and
9.7% of market share, respectively. Hitachi and IBM rounded out the top
5 in a statistical tie* for the number 4 position with revenue shares of
8.6% and 8.4%, respectively.
|
Top 5 Vendors Groups, Worldwide External Enterprise Storage
Systems Market, First Quarter of 2017
|
|||||||||||
| Company |
1Q17
|
1Q17 Market
|
1Q16
|
1Q16 Market
|
1Q17/1Q16
|
||||||
| 1. Dell Inca | $1,424.6 | 27.2% | $1,696.7 | 31.5% | -16.0% | ||||||
| 2. NetApp | $731.6 | 14.0% | $645.5 | 12.0% | 13.3% | ||||||
| 3. HPE/New H3C Group b | $511.0 | 9.7% | $535.7 | 9.9% | -4.6% | ||||||
| T4. Hitachi* | $449.1 | 8.6% | $497.1 | 9.2% | -9.6% | ||||||
| T4. IBM* | $440.6 | 8.4% | $429.0 | 8.0% | 2.7% | ||||||
| Others | $1,684.9 | 32.1% | $1,589.5 | 29.5% | 6.0% | ||||||
| All Vendors | $5,241.9 | 100.0% | $5,393.6 | 100.0% | -2.8% | ||||||
| Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 8, 2017 | |||||||||||
Notes:
* – IDC declares a statistical tie in the
worldwide enterprise storage systems market when there is less than one
percent difference in the revenue share of two or more vendors.
a
– Dell Inc 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 external market share on a global level for HPE as
"HPE/New H3C Group" starting from 2Q 2016 and going forward.
In addition to the table above, an interactive graphic showing the worldwide market share of the top 5 vendors in the total external enterprise storage systems market over the previous five quarters is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.
Flash-Based Storage Systems Highlights
The total All
Flash Array (AFA) market generated almost $1.4 billion in revenue during
the quarter, up 75.7% year over year. The Hybrid Flash Array (HFA)
segment of the market continues to be a significant part of the overall
market with $2.0 billion in revenue and 22.0% of the total market share.
Taxonomy Notes
IDC defines an Enterprise Storage System as a
set of storage elements, including controllers, cables, and (in some
instances) host bus adapters, 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. Original equipment manufacturer (OEM) sales are not included in this study.
IDC's Worldwide Enterprise Storage Systems Quarterly Tracker is a quantitative tool for analyzing the global disk storage market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both customer and factory), Terabytes, $/Gigabyte, Gigabyte/Unit, and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, company, family, model, and region.
For more information about IDC's Worldwide Enterprise Storage Systems Quarterly Tracker, please contact Lidice Fernandez at 305-351-3051 or lfernandez@idc.com.
About IDC
International Data Corporation (IDC) is the
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events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
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