External Storage Market Declines in EMEA in 2Q17

External Storage Market Declines in EMEA in 2Q17
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Total EMEA external storage systems value fell by 2.9% in dollars in the second quarter of 2017 but remained fairly flat at -0.1% in euros, according to IDC.

The all-flash market still recorded high-double-digit growth in value (53.1% in dollars), accounting for about a quarter of the overall market, while hybrid arrays recorded a marginal decline (-3.1%) and HDD-only systems continued to contract (-25.7%).

The Western European external storage market recorded the lowest YoY decline in the EMEA region, at -1.0% in dollars and 1.9% in euros. Capacity, on the other hand, grew by 7.6% to 2,366.2 petabytes.

Unfavorable exchange rates and tough competition are still dragging down the Western European market, but strong growth is still coming from the midrange and AFA segments. In fact, AFA storage solutions again registered strong YoY double-digit growth, albeit amidst an increasingly challenging competitive environment that is shaking up market share rankings in the region.

The external storage market in Central and Eastern Europe, the Middle East, and Africa (CEMA) declined again in the second quarter of 2017, with value declining 9% to $370.2 million and capacity slipping 4.7% to 748.3 terabytes. With nearly 24% share, AFAs considerably outperformed total market growth and together with hybrid solutions were responsible for 70% of the total market in CEMA.

By region, both Central and Eastern Europe (CEE) and the Middle East and Africa (MEA) performed better than in the previous quarter, paving the way to the long-expected market stabilization. A major boost came from high-end AFA arrays, which posted over 300% YoY growth to take more than 50% of the high-end segment value. Similar to last quarter, CEE market performance was stable, excluding Russia due to the weaker performance of some of the largest incumbents. MEA market value was almost flat year on year as large-scale projects in the pipeline came to fruition.

Top 5 Vendors, EMEA External Disk Storage Systems Value ($M)

Vendor

2Q16

2Q16 Market Shares

2Q17

2Q17 Market Shares

2Q17 YoY Growth

Dell

$514.28

32.71%

$409.58

26.85%

-20.36%

HPE

$267.22

17.00%

$248.61

16.29%

-6.97%

NetApp

$212.83

13.54%

$246.69

16.17%

15.91%

IBM

$162.67

10.35%

$163.31

10.70%

0.39%

Hitachi

$110.41

7.02%

$116.31

7.62%

5.35%

Others

$304.89

19.39%

$341.22

22.36%

11.92%

Grand total

$1,572.30

100.00%

$1,525.71

100.00%

-2.96%