Worldwide Enterprise Storage Systems Market Revenue Grew 7.4% During the Fourth Quarter of 2018, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/AFA?src=hash” target=”_blank”gt;#AFAlt;/agt;–According to the International Data Corporation (IDC)
Worldwide
Quarterly Enterprise Storage Systems Tracker
, vendor revenue in the
worldwide enterprise storage systems market increased 7.4% year over
year to $14.5 billion during the fourth quarter of 2018 (4Q18). Total
capacity shipments were up 1.7% year over year to 92.5 exabytes during
the quarter.

Revenue generated by the group of original design manufacturers (ODMs)
selling directly to hyperscale datacenters declined 1.5% year over year
in 4Q18 to $2.7 billion. This represents 18.8% of total enterprise
storage investments during the quarter. Sales of server-based storage
increased 4.7% year over year to just under $4.1 billion in revenue.
This represents 28.1% of total enterprise storage investments. The
external storage systems market was worth roughly $7.7 billion during
the quarter, up 12.5% from 4Q17.

“The fourth quarter results represent a slight shift from trends
realized during the first three quarters of 2018, most notably the
revenue decline for the ODM group of vendors as cloud providers slow
their investment due to significant existing capacity,” said Sebastian
Lagana
, research manager, Infrastructure Platforms and Technologies.
“That considered, OEM vendors selling dedicated storage arrays are
addressing demand from businesses investing in both on-premises and
public cloud infrastructure. Ensuring storage systems support both a
hybrid cloud model as well as increasingly data thirsty on-premises
compute platforms is a high priority for enterprise customers.”

Total Enterprise Storage Systems Market Results, by Company

Dell Inc. was the largest supplier for the quarter, accounting for 20.6%
of total worldwide enterprise storage systems revenue and growing 14.8%
year over year. HPE/New H3C Group was the second largest supplier with
an 18.0% share of revenue on year-to-year growth of 0.6%. NetApp
generated a 5.8% share of total revenue, statistically tying* for the
number three spot during the quarter with IBM, which captured 4.8%
market share. Huawei, Lenovo and Hitachi all statistically tied* for the
number 5 position with shares of 4.0%, 3.5%, and 3.3% respectively. As a
single group, storage systems sales by ODMs directly to hyperscale
datacenter customers accounted for 18.8% of global spending during the
quarter, down 1.5% against 4Q17.

 
Top 5 Companies, Worldwide Total Enterprise Storage Systems
Market, Fourth Quarter of 2018
(Revenues are in US$ millions)
Company  

4Q18
Revenue

 

4Q18
Market
Share

 

4Q17
Revenue

 

4Q17
Market
Share

 

4Q18/4Q17
Revenue
Growth

1. Dell Inc.a   $2,987.6   20.6%   $2,603.1   19.3%   14.8%
2. HPE/New H3C Groupb   $2,606.3   18.0%   $2,592.0   19.2%   0.6%
T3. NetApp*   $842.3   5.8%   $735.3   5.4%   14.6%
T3. IBM*   $698.5   4.8%   $746.9   5.5%   -6.5%
T5. Huawei*   $579.7   4.0%   $514.6   3.8%   12.6%
T5. Lenovo*   $501.8   3.5%   $306.1   2.3%   63.9%
T5. Hitachi*   $483.6   3.3%   $453.1   3.4%   6.7%
ODM Direct   $2,722.8   18.8%   $2,764.3   20.5%   -1.5%
Rest of Market   $3,072.9   21.2%   $2,782.2   20.6%   10.4%
Total   $14,495.5   100.0%   $13,497.7   100.0%   7.4%
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker,
March 7, 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 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 Q2 2016.
 

External Enterprise Storage Systems Results, by Company

Dell Inc. was the largest external enterprise storage systems supplier
during the quarter, accounting for 30.3% of worldwide revenue. NetApp
and HPE/New H3C Group finished statistically tied* for the number 2
position with a 10.9% and 10.6% share of revenue during the quarter
respectively. IBM was the fourth largest with 8.9% share, while Hitachi
and Huawei rounded out the top 5 in a statistical tie* with 6.0% and
5.7% market share.

 
Top 5 Companies, Worldwide External Enterprise Storage Systems
Market, Fourth Quarter of 2018
(Revenues are in US$ millions)
Company  

4Q18
Revenue

 

4Q18
Market
Share

 

4Q17
Revenue

 

4Q17
Market
Share

 

4Q18/4Q17
Revenue
Growth

1. Dell Inc.a   $2,335.0   30.3%   $1,897.3   27.7%   23.1%
T2. NetApp*   $842.3   10.9%   $735.3   10.8%   14.6%
T2. HPE/New H3C Group*b   $813.0   10.6%   $803.4   11.8%   1.2%
4. IBM   $681.4   8.9%   $717.9   10.5%   -5.1%
T5. Hitachi*   $458.5   6.0%   $445.1   6.5%   3.0%
T5. Huawei*   $439.1   5.7%   $374.6   5.5%   17.2%
Rest of Market   $2,124.9   27.6%   $1,863.8   27.3%   14.0%
Total   $7,694.1   100.0%   $6,837.4   100.0%   12.5%
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker,
March 7, 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 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 Q2 2016.
 

In addition to the table above, a graphic illustrating worldwide revenue
market share for the top 5 external enterprise storage systems companies
over the previous five quarter is available by viewing this
press release on IDC.com
.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated just over $2.73 billion
in revenue during the quarter, up 37.6% year over year. The Hybrid Flash
Array (HFA) market was worth slightly more than $3.06 billion in
revenue, up 13.4% from 4Q17.

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 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 that
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Contacts

Sebastian Lagana
508-935-4585
slagana@idc.com

Michael
Shirer
508-935-4200
press@idc.com

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