11 Mar 2021

Worldwide Enterprise External OEM Storage Systems Market Revenue Declined 2.1% During the Fourth Quarter of 2020, According to IDC

NEEDHAM, Mass., March 11, 2021 – According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, global market revenue for enterprise external OEM storage systems declined 2.1% year over year to $7.8 billion during the fourth quarter of 2020 (4Q20). Total external OEM storage capacity shipped was up 11.3% year over year to 23.8 exabytes during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters grew 2.0% year over year to $6.6 billion in 4Q20, while capacity shipped grew by 7.6% year over year to 76.0 exabytes. Total capacity shipments for the market (External OEM + ODM Direct + Server-Based Storage) increased 8.3% to 135.1 exabytes.

"The external storage system market contracted for the fourth consecutive quarter in 4Q20, down 2.1% year over year, as the market for the full year 2020 closed out with a 4.0% decline," said Greg Macatee, research analyst, Infrastructure Platforms and Technologies Group at IDC. "Geographically, the lone region to experience growth during the quarter was China (PRC), which grew nearly 30% year over year and was bolstered by strong performances from a series of locally headquartered vendors. Another of the overall enterprise storage systems market bright spots was the ODM Direct segment, which grew this quarter at a rate of 2.0% annually."

Enterprise External OEM Storage Systems Results, by Company

Dell Technologiesa was the largest external enterprise storage systems supplier during the quarter, followed by HPE/New H3C Groupb. Huawei, NetApp, and IBM took the third, fourth, and fifth positions in the market, respectively.



Notes:

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 external market share on a global level for HPE and New H3C Group as "HPE/New H3C Group" starting from 2Q 2016. Per the JV agreement, Tsinghua Holdings subsidiary, Unisplendour Corporation, through a wholly-owned affiliate, purchased a 51% stake in New H3C and HPE has a 49% ownership stake in the new company.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated $3.0 billion in revenue during the quarter, down 6.9% year over year. The Hybrid Flash Array (HFA) market was worth nearly $3.2 billion in revenue, increasing 5.8% from the year ago quarter.

Regional External Storage System Highlights

On a geographic basis, storage revenue in PRC grew 28.0% year over year. EMEA declined 2.4%, Japan declined 7.8% year over year, while Canada and the United States fell 8.7% and 10.1%, respectively. Asia/Pacific (excluding Japan and PRC) also contracted 14.4% annually, and Latin America fell 18.3%.

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 Enterprise Storage Systems 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.

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 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.

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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 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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