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06 Sep 2018

Worldwide Enterprise Storage Systems Market Revenue Grew 21.3% During the Second Quarter of 2018, According to IDC

FRAMINGHAM, Mass., September 6, 2018 – According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, vendor revenue in the worldwide enterprise storage systems market increased 21.3% year over year to $13.2 billion during the second quarter of 2018 (2Q18). Total capacity shipments were up 70.7% year over year to 111.8 exabytes during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters increased 31.7% year over year in 2Q18 to $3.3 billion. This represents 25.1% of total enterprise storage investments during the quarter. Sales of server-based storage increased 24.9% year over year to $3.8 billion in revenue. This represents 28.5% of total enterprise storage investments. The external storage systems market was worth slightly over $6.1 billion during the quarter, up 14.4% from 2Q17.

"Strong 2Q18 growth was driven by an ongoing infrastructure refresh cycle, investments in next-generation workloads, expanded use in public cloud services and data-driven initiatives," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. "The growing data economy is a big part of the current market growth. Companies of all sizes are investing in platforms that support their need to ingest, process, and disseminate large volumes of data cost effectively and without introducing new risks to the business."

Overall Enterprise Storage Systems Market Results, by Company

Dell Inc. was the largest supplier for the quarter, accounting for 19.1% of total worldwide enterprise storage systems revenue and growing 26.6% over 2Q17. HPE/New H3C Group was the second largest supplier with 17.3% share of revenue and year-to-year growth of 1.9%. NetApp generated 6.3% of total revenue, making it the third largest vendor during the quarter. This represented 19.8% growth over 2Q17. IBM was the fourth largest supplier with a 4.6% share of market revenue during the quarter and year-over-year growth of 7.5%. Hitachi, Lenovo, and Huawei were all statistically tied* for the number 5 position with shares of 3.1%, 3.0%, and 2.7% respectively. As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 25.1% of global spending during the quarter, up 31.7% over 2Q17.

Top 5 Companies, Worldwide Total Enterprise Storage Systems Market, Second Quarter of 2018 (Revenues are in US$ Millions)

Company

2Q18 Revenue

2Q18 Market Share

2Q17 Revenue

2Q17 Market Share

2Q18/2Q17 Revenue Growth

1. Dell Inc.a

$2,524.5

19.1%

$1,993.6

18.3%

26.6%

2. HPE/New H3C Groupb

$2,288.5

17.3%

$2,246.0

20.6%

1.9%

3. NetApp

$832.2

6.3%

$694.6

6.4%

19.8%

4. IBM

$609.1

4.6%

$566.4

5.2%

7.5%

5. Hitachi*

$416.2

3.1%

$412.6

3.8%

0.9%

5. Lenovo*

$396.8

3.0%

$170.5

1.6%

132.8%

5. Huawei*

$356.1

2.7%

$310.0

2.8%

14.9%

ODM Direct

$3,318.0

25.1%

$2,520.2

23.1%

31.7%

Others

$2,489.4

18.8%

$1,995.5

18.3%

24.7%

Total

$13,230.6

100.0%

$10,909.5

100.0%

21.3%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 6, 2018

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 Q2 2016 and going forward.

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

2Q18 External Enterprise Storage Systems Results, by Company

Dell Inc. was the largest external enterprise storage systems supplier during the quarter, accounting for 29.2% of worldwide revenues. NetApp finished in the number 2 position with 13.5% share of revenue during the quarter. HPE/New H3C Group was the third largest with 10.6% share of revenue. IBM and Hitachi rounded out the top 5 with 9.4% and 6.6% market share, respectively.

Top 5 Companies, Worldwide External Enterprise Storage Systems Market, Second Quarter of 2018 (Revenues are in US$ Millions)

Company

2Q18 Revenue

2Q18 Market Share

2Q17 Revenue

2Q17 Market Share

2Q18/2Q17 Revenue Growth

1. Dell Inc.a

$1,793.6

29.2%

$1,515.2

28.2%

18.4%

2. NetApp

$832.2

13.5%

$694.6

12.9%

19.8%

3. HPE/New H3C Groupb

$652.2

10.6%

$625.7

11.7%

4.2%

4. IBM

$579.0

9.4%

$540.1

10.1%

7.2%

5. Hitachi

$402.4

6.6%

$400.1

7.5%

0.6%

Others

$1,882.4

30.6%

$1,594.5

29.7%

18.1%

Total

$6,141.8

100.0%

$5,370.2

100.0%

14.4%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 6, 2018

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.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated just over $2.0 billion in revenue during the quarter, up 41.7% year over year. The Hybrid Flash Array (HFA) market was worth slightly under $2.6 billion in revenue, up 20.8% from 2Q17.

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 Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

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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Sebastian Lagana
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