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14 Sep 2017

Worldwide Enterprise Storage Market Grew 2.9% in the Second Quarter, According to IDC

FRAMINGHAM, Mass., September 14, 2017 – 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 the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. 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."

2Q17 Total Enterprise Storage Systems Market Results, by Company

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.

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

Company

2Q17 Revenue

2Q17 Market Share

2Q16 Revenue

2Q16 Market Share

2Q17/2Q16 Revenue Growth

1. HPE/New H3C Group b c

$2,170.3

20.1%

$2,500.2

23.8%

-13.2%

2. Dell Inc a

$1,993.0

18.4%

$2,717.1

25.9%

-26.7%

3. NetApp

$694.6

6.4%

$595.4

5.7%

16.7%

4. IBM

$566.3

5.2%

$568.5

5.4%

-0.4%

5. Hitachi

$412.6

3.8%

$429.0

4.1%

-3.8%

ODM Direct*

$2,520.2

23.3%

$1,452.6

13.8%

73.5%

Others

$2,451.3

22.7%

$2,238.1

21.3%

9.5%

All Vendors

$10,808.2

100.0%

$10,500.9

100.0%

2.9%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 14, 2017

Notes:

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 market share on a global level for HPE as "HPE/New H3C Group" starting from 2Q 2016 and going forward.

c – HPE/New H3C Group includes the acquisition of Nimble, completed in April 2017.

* – For this release of the Enterprise Storage Systems Tracker, IDC has completed a historical revision of the ODM Direct revenue and capacity going back to 1Q 2013.



2Q17 External Enterprise Storage Systems Results, by Company

Dell Inc was the largest external enterprise storage systems supplier during the quarter, accounting for 28.4% of worldwide revenues. NetApp finished in the number 2 position and HPE in the number 3 position with 13.0% and 11.6% of market share, respectively. IBM and Hitachi rounded out the top 5 with revenue shares of 10.1% and 7.5%, respectively.

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

Company

2Q17 Revenue

2Q17 Market Share

2Q16 Revenue

2Q16 Market Share

2Q17/2Q16 Revenue Growth

1. Dell Inc a

$1,515.9

28.4%

$1,951.6

34.6%

-22.3%

2. NetApp

$694.6

13.0%

$595.4

10.6%

16.7%

3. HPE/New H3C Group b c

$621.9

11.6%

$684.8

12.1%

-9.2%

4. IBM

$540.1

10.1%

$538.5

9.5%

0.3%

5. Hitachi

$400.1

7.5%

$419.0

7.4%

-4.5%

Others

$1,566.8

29.3%

$1,453.4

25.8%

7.8%

All Vendors

$5,339.4

100.0%

$5,642.7

100.0%

-5.4%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 14, 2017

Notes:

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.

c – HPE/New H3C Group includes the acquisition of Nimble, completed in April 2017.





Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated over $1.4 billion in revenue during the quarter, up 37.6% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.1 billion in revenue and 19.6% 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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Contact

For more information, contact:

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

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

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