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08 Jun 2017

Worldwide Enterprise Storage Market Stays Flat in First Quarter, According to IDC

FRAMINGHAM, Mass., June 8, 2017 – Total worldwide enterprise storage systems factory revenue was down 0.5% year over year and reached $9.2 billion in the first quarter of 2017 (1Q17), according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were up 41.4% year over year to 50.1 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 78.2% year over year to $1.2 billion. Sales of server-based storage were down 13.7% during the quarter and accounted for $2.7 billion in revenue. External storage systems remained the largest market segment, but the $5.2 billion in sales represented a modest decline of 2.8% year over year.

"The enterprise storage market closed out the first quarter relatively flat, yet adhered to a familiar pattern," said Liz Conner, research manager, Storage Systems. "Spending on traditional external arrays continues to slowly shrink while spending on all-flash deployments once again posted strong growth and helped to drive the overall market. Meanwhile the very nature of the hyperscale business leads to heavy fluctuations within the market segment, displaying solid growth in 1Q17."

1Q17 Total Enterprise Storage Systems Market Results, by Company

Dell Inc held the number 1 position within the total worldwide enterprise storage systems market, accounting for 21.5% of spending. HPE held the next position with a 20.3% share of revenue during the quarter. HPE's share and year-over-year growth rate includes revenues from the H3C joint venture in China that began in May of 2016; as a result, the reported HPE/New H3C Group combines storage revenue for both companies globally. NetApp finished third with 8.0% market share. Hitachi and IBM finished in a statistical tie* for the fourth position, each capturing 5.0% of global spending. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale datacenter customers accounted for 13.2% of global spending during the quarter.

Top 5 Vendor Groups, Worldwide Total Enterprise Storage Systems Market, First Quarter of 2017 (Revenues are in US$ millions)

Company

1Q17 Revenue

1Q17 Market Share

1Q16 Revenue

1Q16 Market Share

1Q17/1Q16 Revenue Growth

1. Dell Inca

$1,968.5

21.5%

$2,304.2

25.0%

-14.6%

2. HPE/New H3C Group b

$1,865.0

20.3%

$2,289.9

24.8%

-18.6%

3. NetApp

$731.6

8.0%

$645.5

7.0%

13.3%

T4. Hitachi*

$460.1

5.0%

$508.0

5.5%

-9.4%

T4. IBM*

$455.3

5.0%

$448.5

4.9%

1.5%

ODM Direct

$1,212.9

13.2%

$680.5

7.4%

78.2%

Others

$2,478.6

27.0%

$2,344.4

25.4%

5.7%

All Vendors

$9,172.0

100.0%

$9,221.0

100.0%

-0.5%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 8, 2017

Notes:

* – IDC declares a statistical tie in the worldwide enterprise storage systems market when there is less than one percent difference in the revenue share of two or more vendors.

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 2Q 2016 and going forward.



1Q17 External Enterprise Storage Systems Results, by Company

Dell Inc was the largest external enterprise storage systems supplier during the quarter, accounting for 27.2% of worldwide revenues. NetApp finished in the number 2 position and HPE in the number 3 position with 14.0% and 9.7% of market share, respectively. Hitachi and IBM rounded out the top 5 in a statistical tie* for the number 4 position with revenue shares of 8.6% and 8.4%, respectively.

Top 5 Vendors Groups, Worldwide External Enterprise Storage Systems Market, First Quarter of 2017 (Revenues are in Millions)

Company

1Q17 Revenue

1Q17 Market Share

1Q16 Revenue

1Q16 Market Share

1Q17/1Q16 Revenue Growth

1. Dell Inca

$1,424.6

27.2%

$1,696.7

31.5%

-16.0%

2. NetApp

$731.6

14.0%

$645.5

12.0%

13.3%

3. HPE/New H3C Group b

$511.0

9.7%

$535.7

9.9%

-4.6%

T4. Hitachi*

$449.1

8.6%

$497.1

9.2%

-9.6%

T4. IBM*

$440.6

8.4%

$429.0

8.0%

2.7%

Others

$1,684.9

32.1%

$1,589.5

29.5%

6.0%

All Vendors

$5,241.9

100.0%

$5,393.6

100.0%

-2.8%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 8, 2017

Notes:

* – IDC declares a statistical tie in the worldwide enterprise storage systems market when there is less than one percent difference in the revenue share of two or more vendors.

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 2Q 2016 and going forward.



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Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated almost $1.4 billion in revenue during the quarter, up 75.7% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.0 billion in revenue and 22.0% of the total market share.

Taxonomy Notes

IDC defines an Enterprise Storage System as a set of storage elements, including controllers, cables, and (in some instances) host bus adapters, 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. Original equipment manufacturer (OEM) sales are not included in this study.

IDC's Worldwide Enterprise Storage Systems Quarterly Tracker is a quantitative tool for analyzing the global disk storage market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both customer and factory), Terabytes, $/Gigabyte, Gigabyte/Unit, and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, company, family, model, and region.

For more information about IDC's Worldwide Enterprise Storage Systems Quarterly Tracker, please contact Lidice Fernandez at 305-351-3051 or lfernandez@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.

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Coverage
Contact
For more information, contact:

Liz Conner
lconner@idc.com
508-988-6993

Eric Sheppard
esheppard@idc.com
508-988-7925

Lidice Fernandez
lfernandez@idc.com
305-351-3057

Michael Shirer
press@idc.com
508-935-4200