Global enterprise storage market rises 2.9 percent in the second quarter, IDC reveals

Total worldwide enterprise storage systems factory revenue was up 2.9 percent year over year and reached $10.8 billion in the second quarter of 2017 (2Q17), according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker.

Total capacity shipments were up 16.5 percent year over year to 65.3 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 73.5 percent year over year to $2.5 billion.

Sales of server-based storage declined 13.4 percent during the quarter and accounted for $2.9 billion in revenue. External storage systems remained the largest market segment, but the $5.3 billion in sales represented a decline of 5.4 percent year over year.

HPE/New H3C Group held the top position within the total worldwide enterprise storage systems market, accounting for 20.1 percent of spending. Dell held the next position with a 18.4 percent share of revenue during the quarter. NetApp finished third with 6.4 percent market share. IBM finished in finished in fourth position, capturing 5.2 percent of global spending, and Hitachi rounded out the top 5 with 3.8 percent market share.

As a single group, storage systems sales by ODMs selling directly to hyperscale datacenter customers accounted for 23.3 percent of global spending during the quarter.

Dell was the largest external enterprise storage systems supplier during the quarter, accounting for 28.4 percent of worldwide revenues. NetApp finished in the second position and HPE in the third position with 13.0 percent and 11.6 percent of market share, respectively. IBM and Hitachi rounded out the top 5 with revenue shares of 10.1 percent and 7.5 percent, respectively.

The total All Flash Array (AFA) market generated over $1.4 billion in revenue during the quarter, up 37.6 percent year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.1 billion in revenue and 19.6 percent of the total market share.

“The enterprise storage market finished the second quarter of 2017 on a positive note, posting modest year-over-year growth and the first overall growth in several quarters,” said Liz Conner, research manager, Storage Systems. “Traditional storage vendors continue to expand their product portfolios to take advantage of the market swing towards All Flash and converged/hyperconverged systems. Meanwhile, hyperscalers saw new storage initiatives and event-driven storage requirements lead to strong growth in this segment during the second quarter.”


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