09 Jun 2020
Worldwide Enterprise External OEM Storage Systems Market Revenue Declined 8.2% During the First Quarter of 2020, According to IDC
FRAMINGHAM, Mass., June 9, 2020 – According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, global market revenue for enterprise external OEM storage systems declined 8.2% year over year to $6.5 billion during the first quarter of 2020 (1Q20). Total external OEM storage capacity shipped was up 3.0% year over year to 17.3 exabytes during the quarter. Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters grew at 6.9% year over year to $4.9 billion in 1Q20, although capacity shipped decreased by 20.2% year over year to 54.8 exabytes. Total capacity shipments for the market (External OEM + ODM Direct + Server-Based Storage) declined 18.1% to 92.7 exabytes.
"The external OEM market faced stiff headwinds during the first quarter as enterprises across the world had operations impacted by the global pandemic," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "ODMs once again generated growth, taking advantage of increasing spend from hyperscalers – demand that we anticipate will remain solid through the first half of 2020 as many enterprises continue to default to remote work, individuals and employees leverage cloud-based collaboration tools, and content delivery networks ensure support for elevated levels of streaming entertainment consumption requirements."
Enterprise External OEM Storage Systems Results, by Company
Dell Technologies was the largest external enterprise storage systems supplier during the quarter, accounting for 33.2% of worldwide revenue. NetApp placed second with a revenue share of 11.0%, followed by HPE/New H3C Group at 9.9%. Hitachi held the fourth position, while IBM, Pure Storage, and Huawei all tied* for the fifth position.
Top 5 Companies, Worldwide Enterprise External OEM Storage Systems Market, First Quarter of 2020 (Revenues are in US$ millions)
1Q20 Market Share
1Q19 Market Share
1Q20/1Q19 Revenue Growth
1. Dell Technologiesa
3. HPE/New H3C Groupb
T5. Pure Storage*
Rest of Market
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 9, 2020.
* 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 is 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 $2.8 billion in revenue during the quarter, up 0.4% year over year. The Hybrid Flash Array (HFA) market was worth nearly $2.5 billion in revenue, down 11.5% from 1Q19.
Regional External Storage System Highlights
On a geographic basis, Latin America grew the fastest of any region during the quarter, up 19.9% year over year, while Canada was the only other region to generate growth, up 6.4%. All other regions declined during the quarter, with Japan down 4.3%, China down 7.8%, and Asia/Pacific (excluding Japan and China) declining 8.5%. The United States was down 10.0% in 1Q20 and EMEA declined 10.2% in aggregate.
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 criteria can be segmented by location, installation base, operating system, company, family, model, and region.
The IDC Worldwide Quarterly Enterprise Storage Systems Tracker is part of the Worldwide Quarterly Enterprise Infrastructure Tracker, which provides a holistic total addressable market view of the five key enabling infrastructure technologies for the datacenter (servers, external enterprise storage systems, purpose-built appliances: HCI and PBBA, and datacenter switches).
For more information about IDC's Worldwide Enterprise Storage Systems Quarterly Tracker, please contact Lidice Fernandez at 305-351-3051 or firstname.lastname@example.org.
About IDC Trackers
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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 tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.
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