WW Server and Storage Systems Market Declined 8% Y/Y in 2Q19 - Dell'Oro

According to a report from Dell’Oro Group, source for market information about the telecommunications, networks, and data center IT industries, the WW server and storage systems market declined 8% Y/Y in 2Q19.

The market revenue recorded its first decline in 8 quarters. Softness was evident in the enterprise and cloud sectors.

“Demand for server and storage systems was lower across all global regions,” said Baron Fung, director, Dell’Oro Group. “Escalating global macroeconomic factors have created an air of uncertainty, impacting enterprise sentiment and spending, particularly in China. Spending in the cloud is lower as some of the major cloud service providers are undergoing a cycle of digesting excess server capacity. These factors were partly responsible for lower commodity pricing, which further eroded revenue.”

Following are additional highlights from the 2Q 2019 Server and Storage Systems Quarterly Report:
• The server and storage systems market are forecasted to return to higher growth in 1H20.
• Dell ranked No.1 in server vendor revenue share, followed by HPE, Inspur.
• Dell ranked No.1 in storage systems vendor revenue share, followed by NetApp and HPE.
• White box servers, which are primarily deployed by the top 4 cloud service providers, continued to gain share from the branded OEM vendors despite lower cloud spending.

$100 billion server-and-storage-systems industry is experiencing many disruptive changes:
• Public and private cloud adoption is growing as companies change their business models.
• The cloud is demanding new and different server and storage systems solutions to those of the classic enterprise.
• Traditional equipment vendors are facing challenges from white box manufacturers.
• Widespread virtualization and the onset of SDN are answering the call for ever more effective network management.
• The growth trend in flash storage is bringing disruption to traditional storage systems.

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September 6, 2019 | Press Release