Worldwide Enterprise Storage Market Holds Steady in Second Quarter, According to IDC

Worldwide Enterprise Storage Market Holds Steady in Second Quarter, According to IDC
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Total worldwide enterprise storage systems factory revenue remained flat year over year, posting 0% growth and $8.8 billion during the second quarter of 2016, according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker.

Total capacity shipments were up 12.9% year over year to 34.7 exabytes 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 21.5% year over year to $794.7 million.

Sales of server-based storage were up 9.8% during the quarter and accounted for almost $2.4 billion in revenue. External storage systems remained the largest market segment, but the $5.7 billion in sales represented flat 0.0% year-over-year growth.

EMC and HPE remained in a statistical tie* for the top position within the total worldwide enterprise storage systems market, accounting for 18.1% and 17.6% of spending respectively.

HPE's year-over-year growth rate as reported by IDC was impacted by the start of the H3C partnership in China that began in May of 2016; as a result, a portion of HPE-designed storage systems were rebranded for the China market and do not count in HPE's market data from that point forward. Dell held the next position with a 11.5% share of revenue during the quarter.

IBM and NetApp accounted for 6.8% and 6.7% of global spending respectively. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale data center customers accounted for 9.0% of global spending during the quarter.

 

Top 5 Vendors, Worldwide Total Enterprise Storage Systems Market, Second Quarter of 2016 (Revenues are in US$ millions)

Vendor

2Q16 Revenue

2Q16 Market Share

2Q15 Revenue

2Q15 Market Share

2Q16/2Q15 Revenue Growth

T1. EMC*

$1,599.7

18.1%

$1,693.0

19.2%

-5.5%

T1. HPE*^

$1,556.7

17.6%

$1,431.3

16.2%

8.8%

3. Dell

$1,011.8

11.5%

$888.9

10.1%

13.8%

T4. IBM*+

$601.3

6.8%

$712.2

8.1%

-15.6%

T4. NetApp*

$595.4

6.7%

$615.4

7.0%

-3.2%

ODM Direct

$794.7

9.0%

$1,011.8

11.5%

-21.5%

Others

$2,669.1

30.2%

$2,479.6

28.1%

7.6%

All Vendors

$8,828.7

100.0%

$8,832.1

100.0%

0.0%

Source: IDC, 2016