WW Enterprise Storage Systems Market Revenue Up 21% From 2Q17 to 2Q18 at $13 Billion – IDC

According to the International Data Corporation Worldwide Quarterly Enterprise Storage Systems Tracker, vendor revenue in the worldwide enterprise storage systems market increased 21.3% year over year to $13.2 billion during 2Q18.

Total capacity shipments were up 70.7% Y/Y to 111.8EB during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters increased 31.7% year over year in 2Q18 to $3.3 billion. This represents 25.1% of total enterprise storage investments during the quarter.

Sales of server-based storage increased 24.9% year over year to $3.8 billion in revenue. This represents 28.5% of total enterprise storage investments.

The external storage systems market was worth slightly over $6.1 billion during the quarter, up 14.4% from 2Q17.

“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, IDC. “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.”

Overall Enterprise Storage Systems Market by Company
Dell Inc. was the largest supplier for the quarter, accounting for 19.1% of total worldwide enterprise storage systems revenue and growing 26.6% over 2Q17. HPE/New H3C Group was the second largest supplier with 17.3% share of revenue and year-to-year growth of 1.9%. NetApp generated 6.3% of total revenue, making it the third largest vendor during the quarter. This represented 19.8% growth over 2Q17. IBM was the fourth largest supplier with a 4.6% share of market revenue during the quarter and yearly growth of 7.5%. Hitachi, Lenovo, and Huawei were all statistically tied* for the number 5 position with shares of 3.1%, 3.0%, and 2.7% respectively. As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 25.1% of global spending during the quarter, up 31.7% over 2Q17.
 

Top 5 Companies, WW Total Enterprise Storage Systems Market, 2Q18
(revenue in $million)

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 2Q16 and going forward.
* IDC declares a statistical tie in the worldwide enterprise storage systems market when there is 1% difference or less in the revenue share of two or more vendors.

2Q18 External Enterprise Storage Systems Results, by Company
Dell Inc. was the largest external enterprise storage systems supplier during the quarter, accounting for 29.2% of worldwide revenues. NetApp finished in the number 2 position with 13.5% share of revenue during the quarter. HPE/New H3C Group was the third largest with 10.6% share of revenue. IBM and Hitachi rounded out the top 5 with 9.4% and 6.6% market share, respectively.
 

Top 5 Companies, WW External Enterprise Storage Systems Market, 2Q18
(revenue in $million)

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 2Q16 and going forward.

Flash-Based Storage Systems Highlights
The total AFA market generated just over $2.0 billion in revenue during the quarter, up 41.7% Y/Y. The hybrid flash array market was worth slightly under $2.6 billion in revenue, up 20.8% from 2Q17.

Taxonomy Notes
IDC defines an enterprise 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 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. OEM sales are not included in this study.