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30 Nov 2017

Worldwide Enterprise Storage Market Grew 14.0% in the Third Quarter, According to IDC

FRAMINGHAM, Mass., November 30, 2017 – Total worldwide enterprise storage systems factory revenue was up 14.0% year over year and reached $11.8 billion in the third quarter of 2017 (3Q17), according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were up 22.4% year over year to 72.5 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 54.8% year over year to just under $2.7 billion. Sales of server-based storage increased 8.7% during the quarter and accounted for $3.5 billion in revenue. External storage systems remained the largest market segment, with the $5.6 billion in sales represented an increase of 4.1% year over year.

"The enterprise storage market finished the third quarter of 2017 on a positive note, posting strong year-over-year growth and the first double-digit growth in several years," said Liz Conner, research manager, Storage Systems. "All Flash, software-defined, and converged/hyperconverged systems continue to be the driving force for traditional storage vendors. Meanwhile, hyperscalers once again saw event-driven storage requirements lead to strong growth in this segment during the third quarter."

3Q17 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 20.2% of spending. Dell Inc held the next position with a 18.8% share of revenue during the quarter. NetApp finished third with 6.0% market share. IBM and Hitachi finished in a tie* for the fourth position, capturing 4.3% and 4.0% of global spending, respectively. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale datacenter customers accounted for 22.7% of global spending during the quarter.

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

Company

3Q17 Revenue

3Q17 Market Share

3Q16 Revenue

3Q16 Market Share

3Q17/3Q16 Revenue Growth

1. HPE/New H3C Group

$2,377.5

20.2%

$2,382.8

23.1%

-0.2%

2. Dell Inc.

$2,212.1

18.8%

$2,178.1

21.1%

1.6%

3. NetApp

$700.7

6.0%

$587.1

5.7%

19.4%

T4. IBM*

$508.7

4.3%

$487.0

4.7%

4.5%

T4. Hitachi*

$475.9

4.0%

$505.8

4.9%

-5.9%

ODM Direct

$2,666.5

22.7%

$1,722.2

16.7%

54.8%

Others

$2,826.4

24.0%

$2,460.2

23.8%

14.9%

All Vendors

$11,767.8

100.0%

$10,323.2

100.0%

14.0%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, November 30, 2017

Notes:

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.

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

Dell Inc. represents the combined revenues for Dell and EMC.

* – 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.

3Q17 External Enterprise Storage Systems Results, by Company

Dell Inc was the largest external enterprise storage systems supplier during the quarter, accounting for 28.8% of worldwide revenues. NetApp finished in the number 2 position and HPE in the number 3 position with 12.5% and 11.4% of market share, respectively. IBM and Hitachi rounded out the top 5 in a tie* with revenue shares of 8.7% and 8.3%, respectively.

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

Company

3Q17 Revenue

3Q17 Market Share

3Q16 Revenue

3Q16 Market Share

3Q17/3Q16 Revenue Growth

1. Dell Inc.

$1,609.8

28.8%

$1,676.2

31.2%

-4.0%

2. NetApp

$700.7

12.5%

$587.1

10.9%

19.4%

3. HPE/New H3C Group

$637.6

11.4%

$621.0

11.6%

2.7%

T4. IBM*

$487.1

8.7%

$463.5

8.6%

5.1%

T4. Hitachi*

$466.9

8.3%

$493.4

9.2%

-5.4%

Others

$1,690.2

30.2%

$1,530.3

28.5%

10.4%

All Vendors

$5,592.3

100.0%

$5,371.6

100.0%

4.1%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, November 30, 2017

Notes:

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.

HPE/New H3C Group includes the acquisition of Nimble, completed in April 201. 7

Dell Inc represents the combined revenues for Dell and EMC.

* – 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.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated just shy of $1.6 billion in revenue during the quarter, up 38.1% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.3 billion in revenue and 19.1% 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:

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

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

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