IDC reports that global enterprise storage systems market revenue grew 21.3% to $13.2 billion during second quarter of 2018

According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, vendor revenue in the worldwide enterprise storage systems market increased 21.3 percent year over year to US$13.2 billion during the second quarter of 2018 (2Q18). Total capacity shipments were up 70.7 percent year over year to 111.8 exabytes during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale data centers increased 31.7 percent year over year in the second quarter to $3.3 billion. This represents 25.1 percent of total enterprise storage investments during the quarter.

Sales of server-based storage increased 24.9 percent year over year to $3.8 billion in revenue. This represents 28.5 percent of total enterprise storage investments. The external storage systems market was worth slightly over $6.1 billion during the quarter, up 14.4 percent from the second quarter of last year.

Dell was the largest supplier for the quarter, accounting for 19.1 percent of total worldwide enterprise storage systems revenue and growing 26.6 percent compared to the second quarter of last year. HPE/New H3C Group was the second largest supplier with 17.3 percent share of revenue and year-to-year growth of 1.9 percent. NetApp generated 6.3 percent of total revenue, making it the third largest vendor during the quarter. This represented 19.8 percent growth over the second quarter of last year.

IBM was the fourth largest supplier with a 4.6 percent share of market revenue during the quarter and year-over-year growth of 7.5 percent.

Hitachi, Lenovo, and Huawei were all statistically tied for the number 5 position with shares of 3.1 percent, 3.0 percent, and 2.7 percent respectively.

As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 25.1 percent of global spending during the quarter, up 31.7 percent over the second quarter of last year.

Dell also emerged as the largest external enterprise storage systems supplier during the quarter, accounting for 29.2 percent of worldwide revenues. NetApp finished in the number 2 position with 13.5 percent share of revenue during the quarter.

HPE/New H3C Group was the third largest with 10.6 percent share of revenue. IBM and Hitachi rounded out the top 5 with 9.4 percent and 6.6 percent market share, respectively.

The total All Flash Array (AFA) market generated just over $2.0 billion in revenue during the quarter, up 41.7 percent year over year. The Hybrid Flash Array (HFA) market was worth slightly under $2.6 billion in revenue, up 20.8 percent from the second quarter of last year.

“Strong 2Q18 growth was driven by an ongoing infrastructure refresh cycle, investments in next-generation workloads, expanded use in public cloud services and data-driven initiatives,” said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. “The growing data economy is a big part of the current market growth. Companies of all sizes are investing in platforms that support their need to ingest, process, and disseminate large volumes of data cost effectively and without introducing new risks to the business.”


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