Enterprise Storage Market revenue declines 0.6% in Q1

By VARINDIA - 2019-06-10

Enterprise Storage Market revenue declines 0.6% in Q1

According to the IDC vendor revenue in the worldwide enterprise storage systems market decreased 0.6% year over year to $13.4 billion during the first quarter of 2019 (1Q19). Total capacity shipments were up 14.1% year over year to 114.2 exabytes during the quarter.

 

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters declined 5.3% year over year in 1Q19 to $2.95 billion. This represents 22.1% of total enterprise storage investments during the quarter. Sales of server-based storage decreased 6.6% year over year to just over $3.6 billion in revenue. This represents 26.6% of total enterprise storage investments. The external storage systems market revenue totaled nearly $6.9 billion during the quarter, up 5.0% from 1Q18.

 

"First quarter 2019 results are an acceleration of the slowdown we noted last quarter, with declining ODM and internal (server-based) storage the primary drivers of market contraction." said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. "OEM vendors selling dedicated storage arrays still generated growth during the quarter, although slowing flash-centric array growth indicates that the opportunity for existing install-base upgrades is beginning to wane."

 

Dell Technologies was the largest supplier for the quarter, accounting for 22.2% of total worldwide enterprise storage systems revenue and declining 1.0% year over year. HPE/New H3C Group was the second largest supplier with an 17.3% share of revenue on a year-to-year contraction of 1.6%. NetApp generated a 6.7% share of total revenue, holding the number 3 position during the quarter. Hitachi held the fourth position at 3.6% of the market, while Lenovo, IBM, Pure Storage, Huawei, Fujitsu and Inspur all statistically tied for the number 5 position with shares of 2.5%, 2.5%, 2.2%, 2.1%,1.9%, and 1.9% respectively. As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 22.1% of global spending during the quarter, down 5.3% against 1Q18. 

 

As far as external enterprise storage systems are concerned, Dell Technologies was the largest external enterprise storage systems supplier during the quarter, accounting for 34.4% of worldwide revenue. NetApp was second with 13.0% of the market, followed by HPE/New H3C Group with 10.9%. Hitachi held the fourth position with 6.6% of the external storage market, while IBM and Pure Storage finished in a statistical tie for fifth with 4.7% and 4.2% market share, respectively.




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