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05 Sep 2019

Worldwide Enterprise External OEM Storage Systems Market Revenue Declined 0.8% During the Second Quarter of 2019, According to IDC

FRAMINGHAM, Mass., September 5, 2019 – According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, vendor revenue in the worldwide enterprise external OEM storage systems market decreased 0.8% year over year to $6.3 billion during the second quarter of 2019 (2Q19). Total capacity shipments in the external storage systems market were up 5.2% year over year to 16.3 exabytes during the quarter, while capacity shipments in the total market (including ODMs and server-based storage) declined 4.2% to 107.9 exabytes. Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters declined 22.9% year over year in 2Q19 to $4.2 billion.

"Second quarter results trended similarly to the first quarter with ODMs continuing to decline against a difficult year-over-year comparison and internal (server-based) storage weighed down by a contraction in the server market," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. "While the external OEM segment was pressured by contraction in all-flash arrays, which has long been a growth driver for the segment, we did note end user investment in midrange SAN platforms remained strong, with nearly all OEMs generating growth in that portion of the market."

Enterprise External OEM Storage Systems Results, by Company

Dell Technologies was the largest enterprise external storage systems supplier during the quarter, accounting for 29.9% of worldwide revenue. HPE/New H3C Group and NetApp tied* for the second position with 11.7% and 10.8% of the market respectively. IBM and Hitachi tied* for the fourth position with 7.1% and 6.9% of global external storage market revenues.

Top 5 Companies, Worldwide Enterprise External OEM Enterprise Storage Systems Market, Second Quarter of 2019 (Revenues are in US$ millions)

Company

2Q19 Revenue

2Q19 Market Share

2Q18 Revenue

2Q18 Market Share

2Q19/2Q18 Revenue Growth

1. Dell Technologiesa

$1,891.6

29.9%

$1,927.2

30.2%

-1.8%

T2. HPE/New H3C Groupb*

$740.4

11.7%

$652.6

10.2%

13.5%

T2. NetApp*

$684.0

10.8%

$832.2

13.1%

-17.8%

T4. IBM*

$448.1

7.1%

$579.9

9.1%

-22.7%

T4. Hitachi*

$437.1

6.9%

$402.4

6.3%

8.6%

Rest of Market

$2,125.0

33.6%

$1,982.0

31.1%

7.2%

Total

$6,326.2

100.0%

$6,376.3

100.0%

-0.8%

Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 5, 2019.

Notes:

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

a Dell Technologies 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.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated nearly $2.1 billion in revenue during the quarter, down 0.7% year over year. The Hybrid Flash Array (HFA) market was worth nearly $2.7 billion in revenue, up 3.8% from 2Q18.

Regional External OEM Enterprise Storage System Highlights

On a geographic basis, Japan grew the fastest of any region, up 20.8% year over year. Asia/Pacific (excluding Japan) was up 7.9%. Europe, the Middle East, and Africa (EMEA) was down 3.2% while the USA was down 4.6% and Latin America declined 17.1%. Spending within China increased 10.9% year over year.

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 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 criterion 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. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.



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