Worldwide Enterprise Storage Market Grew 2.9% in 2Q17

Total worldwide enterprise storage systems factory revenue was up 2.9% year over year and reached $10.8 billion in the second quarter of 2017 (2Q17), according to IDC. Total capacity shipments were up 16.5% year over year to 65.3 exabytes during the quarter.

Revenue growth increased within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacenters. This portion of the market was up 73.5% year over year to $2.5 billion.

Sales of server-based storage declined 13.4% during the quarter and accounted for $2.9 billion in revenue. External storage systems remained the largest market segment, but the $5.3 billion in sales represented a decline of 5.4% year over year.

"The enterprise storage market finished the second quarter of 2017 on a positive note, posting modest year-over-year growth and the first overall growth in several quarters," said Liz Conner, research manager, Storage Systems. "Traditional storage vendors continue to expand their product portfolios to take advantage of the market swing towards All Flash and converged/hyperconverged systems. Meanwhile, hyperscalers saw new storage initiatives and event-driven storage requirements lead to strong growth in this segment during the second quarter.

HPE/New H3C Group held the number 1 position within the total worldwide enterprise storage systems market, accounting for 20.1% of spending. Dell Inc held the next position with a 18.4% share of revenue during the quarter.

NetApp finished third with 6.4% market share. IBM finished in finished in fourth position, capturing 5.2% of global spending, and Hitachi rounded out the top 5 with 3.8% market share. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale datacenter customers accounted for 23.3% of global spending during the quarter.