FRAMINGHAM, Mass.--(BUSINESS WIRE)--Total worldwide enterprise storage systems factory revenue was up 2.9% 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% 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% year over year to $2.5 billion. Sales of server-based storage declined 13.4% during the quarter and accounted for $2.9 billion in revenue. External storage systems remained the largest market segment, but the $5.3 billion in sales represented a decline of 5.4% year over year.
"The enterprise storage market finished the second quarter of 2017 on a positive note, posting modest year-over-year growth and the first overall growth in several quarters," said Liz Conner, research manager, Storage Systems. "Traditional storage vendors continue to expand their product portfolios to take advantage of the market swing towards All Flash and converged/hyperconverged systems. Meanwhile, hyperscalers saw new storage initiatives and event-driven storage requirements lead to strong growth in this segment during the second quarter."
2Q17 Total Enterprise Storage Systems Market Results, by Company
HPE/New
H3C Group held the number 1 position within the total worldwide
enterprise storage systems market, accounting for 20.1% of spending.
Dell Inc held the next position with a 18.4% share of revenue during the
quarter. NetApp finished third with 6.4% market share. IBM finished in
finished in fourth position, capturing 5.2% of global spending, and
Hitachi rounded out the top 5 with 3.8% market share. As a single group,
storage systems sales by original design manufacturers (ODMs) selling
directly to hyperscale datacenter customers accounted for 23.3% of
global spending during the quarter.
| Top 5 Vendor Groups, Worldwide Total Enterprise Storage Systems Market, Second Quarter of 2017 (Revenues are in US$ millions) | ||||||||||||||||||||
| Company | 2Q17 Revenue | 2Q17 Market Share | 2Q16 Revenue | 2Q16 Market Share | 2Q17/2Q16 Revenue Growth | |||||||||||||||
| 1. HPE/New H3C Group b c | $2,170.3 | 20.1% | $2,500.2 | 23.8% | -13.2% | |||||||||||||||
| 2. Dell Inc a | $1,993.0 | 18.4% | $2,717.1 | 25.9% | -26.7% | |||||||||||||||
| 3. NetApp | $694.6 | 6.4% | $595.4 | 5.7% | 16.7% | |||||||||||||||
| 4. IBM | $566.3 | 5.2% | $568.5 | 5.4% | -0.4% | |||||||||||||||
| 5. Hitachi | $412.6 | 3.8% | $429.0 | 4.1% | -3.8% | |||||||||||||||
| ODM Direct* | $2,520.2 | 23.3% | $1,452.6 | 13.8% | 73.5% | |||||||||||||||
| Others | $2,451.3 | 22.7% | $2,238.1 | 21.3% | 9.5% | |||||||||||||||
| All Vendors | $10,808.2 | 100.0% | $10,500.9 | 100.0% | 2.9% | |||||||||||||||
| Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 14, 2017 | ||||||||||||||||||||
Notes:
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 market share on a global level for HPE as "HPE/New H3C
Group" starting from 2Q 2016 and going forward.
c –
HPE/New H3C Group includes the acquisition of Nimble, completed in April
2017.
* – For this release of the Enterprise
Storage Systems Tracker, IDC has completed a historical revision of the
ODM Direct revenue and capacity going back to 1Q 2013.
2Q17 External Enterprise Storage Systems Results, by Company
Dell
Inc was the largest external enterprise storage systems supplier during
the quarter, accounting for 28.4% of worldwide revenues. NetApp finished
in the number 2 position and HPE in the number 3 position with 13.0% and
11.6% of market share, respectively. IBM and Hitachi rounded out the top
5 with revenue shares of 10.1% and 7.5%, respectively.
| Top 5 Vendors Groups, Worldwide External Enterprise Storage Systems Market, Second Quarter of 2017 (Revenues are in Millions) | ||||||||||||||||||||
| Company | 2Q17 Revenue | 2Q17 Market Share | 2Q16 Revenue | 2Q16 Market Share | 2Q17/2Q16 Revenue Growth | |||||||||||||||
| 1. Dell Inc a | $1,515.9 | 28.4% | $1,951.6 | 34.6% | -22.3% | |||||||||||||||
| 2. NetApp | $694.6 | 13.0% | $595.4 | 10.6% | 16.7% | |||||||||||||||
| 3. HPE/New H3C Group b c | $621.9 | 11.6% | $684.8 | 12.1% | -9.2% | |||||||||||||||
| 4. IBM | $540.1 | 10.1% | $538.5 | 9.5% | 0.3% | |||||||||||||||
| 5. Hitachi | $400.1 | 7.5% | $419.0 | 7.4% | -4.5% | |||||||||||||||
| Others | $1,566.8 | 29.3% | $1,453.4 | 25.8% | 7.8% | |||||||||||||||
| All Vendors | $5,339.4 | 100.0% | $5,642.7 | 100.0% | -5.4% | |||||||||||||||
| Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 14, 2017 | ||||||||||||||||||||
Notes:
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.
c –
HPE/New H3C Group includes the acquisition of Nimble, completed in April
2017.
In addition to the table above, a graphic illustrating worldwide revenue share of the top 5 external enterprise storage systems companies over the previous five quarters is available by viewing this press release on IDC.com.
Flash-Based Storage Systems Highlights
The total All
Flash Array (AFA) market generated over $1.4 billion in revenue during
the quarter, up 37.6% 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% 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.
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