IDC Report: Worldwide Enterprise Storage Market Grew 2.9% in Q2 2017

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, according to IDC’s 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 data centers. 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 second quarter of 2017 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, IDC. “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.”

HPE, Dell, NetApp, IBM 

HPE/New H3C Group held the number 1 position within the total worldwide enterprise storage systems market, accounting for 20.1% of spending. Dell 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 fourth position, capturing 5.2% of global spending, and Hitachi rounded out the top 5 with 3.8% market share.

idc storage reportAs a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale data center customers accounted for 23.3% of global spending during the second quarter.

Dell 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. 

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, Quarterly Tracker

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. IDC’s 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.

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