FRAMINGHAM, Mass. — (BUSINESS WIRE) — June 5, 2018 — The total worldwide enterprise storage systems factory revenue grew 34.4% year over year during the first quarter of 2018 (1Q18) to $13.0 billion, according to the International Data Corporation ( IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were up 79.1% year over year to 98.8 exabytes during the quarter.
Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters increased 80.4% year over year in 1Q18 to $3.1 billion. This represented 23.9% of total enterprise storage investments during the quarter. Sales of server-based storage increased 34.2% year over year, to $3.6 billion in revenue. This represented 28.0% of total enterprise storage investments. The external storage systems market was worth $6.3 billion during the quarter, up 19.3% from 1Q17.
"This was a quarter of exceptional growth that can be attributed to multiple factors," said Eric Sheppard, research vice president, Server and Storage Infrastructure. "Demand for public cloud resources and a global enterprise infrastructure refresh were two important drivers of new enterprise storage investments around the world. Solutions most commonly sought after in today's enterprise storage systems are those that help drive new levels of datacenter efficiency, operational simplicity, and comprehensive support for next generation workloads."
1Q18 Total Enterprise Storage Systems Market Results, by Company
Dell
Inc was the largest supplier for the quarter, accounting for 21.6% of
total worldwide enterprise storage systems revenue and growing 43.0%
over 1Q17. HPE/New H3C Group was the second largest supplier with 17.7%
share of revenue. This represented 18.3% growth over 1Q17. NetApp
generated 6.8% of total revenue, making it the third largest vendor
during the quarter. This represented 21.7% growth over 1Q17. Hitachi and
IBM were statistically tied* as the fourth largest suppliers with 3.6%
and 3.0% respective share of revenue during the quarter. As a single
group, storage systems sales by original design manufacturers (ODMs)
directly to hyperscale datacenter customers accounted for 23.9% of
global spending during the quarter, up 80.4% over 1Q17.
| Top 5 Vendor Groups, Worldwide Total Enterprise Storage Systems Market, First Quarter of 2018 (Revenues are in US$ millions) | ||||||||||||||||||
| Company |
1Q18
|
1Q18 Market
|
1Q17
|
1Q17 Market
|
1Q18/1Q17
|
|||||||||||||
| 1. Dell Inc a | $2,815.0 | 21.6 | % | $1,968.2 | 20.3 | % | 43.0 | % | ||||||||||
| 2. HPE/New H3C Group b c | $2,307.2 | 17.7 | % | $1,950.1 | 20.1 | % | 18.3 | % | ||||||||||
| 3. NetApp | $890.1 | 6.8 | % | $731.6 | 7.6 | % | 21.7 | % | ||||||||||
| T4. Hitachi* | $464.4 | 3.6 | % | $460.1 | 4.8 | % | 0.9 | % | ||||||||||
| T4. IBM* | $387.0 | 3.0 | % | $455.3 | 4.7 | % | -15.0 | % | ||||||||||
| ODM Direct | $3,111.5 | 23.9 | % | $1,725.0 | 17.8 | % | 80.4 | % | ||||||||||
| Others | $3,035.7 | 23.3 | % | $2,392.0 | 24.7 | % | 26.9 | % | ||||||||||
| All Vendors | $13,010.9 | 100.0 | % | $9,682.4 | 100.0 | % | 34.4 | % | ||||||||||
| Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 5, 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 2Q 2016 and going forward.
c –
HPE/New H3C Group includes the acquisition of Nimble, completed in April
2017.
* – 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.
1Q18 External Enterprise Storage Systems Results, by Company
Dell
Inc was the largest external enterprise storage systems supplier during
the quarter, accounting for 32.9% of worldwide revenues. NetApp finished
in the number 2 position with 14.2% share of revenue during the quarter.
HPE/New H3C Group was the third largest with 10.4% share of revenue.
Hitachi and IBM rounded out the top 5 with 7.3% and 5.8% market share,
respectively.
| Top 5 Vendor Groups, Worldwide External Enterprise Storage Systems Market, First Quarter of 2018 (Revenues are in Millions) | ||||||||||||||||||
| Company |
1Q18
|
1Q18 Market
|
1Q17
|
1Q17 Market
|
1Q18/1Q17
|
|||||||||||||
| 1. Dell Inc a | $2,060.1 | 32.9 | % | $1,424.3 | 27.2 | % | 44.6 | % | ||||||||||
| 2. NetApp | $890.1 | 14.2 | % | $731.6 | 14.0 | % | 21.7 | % | ||||||||||
| 3. HPE/New H3C Group b c | $652.2 | 10.4 | % | $596.1 | 11.4 | % | 9.4 | % | ||||||||||
| 4. Hitachi | $457.9 | 7.3 | % | $449.1 | 8.6 | % | 2.0 | % | ||||||||||
| 5. IBM | $364.2 | 5.8 | % | $440.6 | 8.4 | % | -17.3 | % | ||||||||||
| Others | $1,830.7 | 29.3 | % | $1,599.9 | 30.5 | % | 14.4 | % | ||||||||||
| All Vendors | $6,255.0 | 100.0 | % | $5,241.6 | 100.0 | % | 19.3 | % | ||||||||||
| Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 5, 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.
c –
HPE/New H3C Group includes the acquisition of Nimble, completed in April
2017
* – 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.
In addition to the table above, a graphic illustrating the worldwide revenue market share of the top 5 external enterprise storage systems companies over the previous five quarters is available by viewing this press release on IDC.com.
Flash-Based Storage Systems Highlights
The total All
Flash Array (AFA) market generated $2.1 billion in revenue during the
quarter, up 54.7% year over year. The Hybrid Flash Array (HFA) market
was worth $2.5 billion in revenue, up 23.8% from 1Q17.
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
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