WW Enterprise Storage Market, Even Capacity Shipments, to Decline in 1Q16 – IDC

Total worldwide enterprise storage systems factory revenue declined 7.0% year over year to $8.2 billion during 1Q16, according to the International Data Corporation Worldwide Quarterly Enterprise Storage Systems Tracker.

Total capacity shipments were down 4.0% year over year to 27.8EB during the quarter.

Revenue growth declined within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacenters. This portion of the market was down 39.9% year over year to $681 million.

Sales of server-based storage were up 2.0% during the quarter and accounted for $2.1 billion in revenue.

External storage systems remained the largest market segment, but the $5.4 billion in sales represented a 3.7% year-over-year decline.

Total worldwide enterprise storage systems factory revenue declined 7.0% in 1Q16.

“On the heels of a busy end-of-year spending cycle, the enterprise storage system market reverted to a familiar trend,” said Liz Conner, research manager, storage systems. “Spending on server-based storage was up, spending on traditional external arrays continues to decline, while the nature of hyperscale business leads it to fluctuate heavily with that market segment seeing a heavy decline in 1Q16.”

1Q16 Total Enterprise Storage Systems Market Results
HPE and EMC finished in a statistical tie* for the top position within the total worldwide enterprise storage systems market, accounting for 17.3% and 16.4% of spending respectively. Dell held the next position with a 10.3% share of revenue during the quarter. NetApp accounted for 7.9% of global spending. As a single group, storage systems sales by ODMs selling directly to hyperscale data center customers accounted for 8.3% of global spending during the quarter.

WW Total Enterprise Storage Systems Market, 1Q16
(revenue in $ million)

WW Total Enterprise Storage Systems Market, 1Q15-1Q6
(shares based on revenue)

(Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 3, 2016)

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.
• + IBM’s 1Q16 revenue excludes x86 servers due to the sale of that business to Lenovo.

1Q16 External Enterprise Storage Systems Results
EMC was the largest external enterprise storage systems supplier during the quarter, accounting for 24.9% of worldwide revenues. NetApp finished in the number 2 position with 11.9% share. HPE and Hitachi finished the quarter in a statistical tie* for the number 3 position with 9.9% and 9.2% share of worldwide revenues, respectively. IBM and Dell rounded out the top 5 in a statistical tie* with a 7.9% and 6.9% share, respectively, of worldwide external enterprise storage revenue during the quarter.

WW External Enterprise Storage Systems Market, 1Q16
(revenue in $ million)

(Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 3, 2016)

* IDC declares a statistical tie in the worldwide enterprise storage systems market when there is less than onepercent difference in the revenue share of two or more vendors.

Flash-Based Storage Systems Highlights
The total All Flash Array (AFA) market generated $794.8 million in revenue during the quarter, up 87.4% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.2 billion in revenue and 26.5% market share.

Taxonomy Notes

• IDC defines a disk storage system as a set of storage elements, including controllers, cables, and (in some instances) HBAs, 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 disk storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer.
• OEM sales are not included in this study. HDS sales do not reflect their OEM sales to Sun Microsystems and HPE.