Worldwide Enterprise Storage Systems Market Revenue Declined 0.6% During the First Quarter of 2019, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–#AFA–According to the International Data Corporation (IDC)
Worldwide
Quarterly Enterprise Storage Systems Tracker
, 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.”

Total Enterprise Storage Systems Market Results, by Company

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.

 

Top 5 Companies, Worldwide Total Enterprise Storage Systems
Market, First Quarter of 2019

(Revenues are in US$
millions)

Company    

1Q19
Revenue

 

1Q19
Market
Share

 

1Q18
Revenue

 

1Q18
Market
Share

 

1Q19/1Q18
Revenue
Growth

1. Dell Technologiesa     $2,964.9   22.2%   $2,995.8   22.3%   -1.0%
2. HPE/New H3C Groupb     $2,318.5   17.3%   $2,356.7   17.5%   -1.6%
3. NetApp     $894.9   6.7%   $890.1   6.6%   0.5%
4. Hitachi     $486.2   3.6%   $464.4   3.5%   4.7%
T5. Lenovo*     $337.0   2.5%   $293.9   2.2%   14.6%
T5. IBM*     $334.1   2.5%   $388.2   2.9%   -13.9%
T5. Pure Storage*     $289.5   2.2%   $236.4   1.8%   22.4%
T5. Huawei*     $283.5   2.1%   $247.4   1.8%   14.6%
T5. Fujitsu*     $257.7   1.9%   $263.9   2.0%   -2.3%
T5. Inspur*     $250.3   1.9%   $236.4   1.8%   5.9%
ODM Direct     $2,948.1   22.1%   $3,112.6   23.1%   -5.3%
Rest of Market     $2,004.3   15.0%   $1,968.3   14.6%   1.8%
Total     $13,369.0   100.0%   $13,454.1   100.0%   -0.6%
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker,
June 6, 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 Technologies 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 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.

 

Top 5 Companies, Worldwide External Enterprise Storage Systems
Market, First Quarter of 2019

(Revenues are in US$
millions)

Company    

1Q19
Revenue

 

1Q19
Market
Share

 

1Q18
Revenue

 

1Q18
Market
Share

 

1Q19/1Q18
Revenue
Growth

1. Dell Technologiesa     $2,355.9   34.4%   $2,219.6   34.0%   6.1%
2. NetApp     $894.9   13.0%   $890.1   13.6%   0.5%
3. HPE/New H3C Groupb     $745.4   10.9%   $652.2   10.0%   14.3%
4. Hitachi     $452.7   6.6%   $457.9   7.0%   -1.1%
T5. IBM*     $320.0   4.7%   $364.1   5.6%   -12.1%
T5. Pure Storage*     $289.5   4.2%   $236.4   3.6%   22.4%
Rest of Market     $1,800.3   26.2%   $1,709.0   26.2%   5.3%
Total     $6,858.6   100.0%   $6,529.3   100.0%   5.0%

Source: IDC Worldwide Quarterly Enterprise Storage Systems
Tracker, June 6, 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 Technologies 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 market
share for the top 5 external enterprise storage system 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 just over $2.47 billion
in revenue during the quarter, up 17.5% year over year. The Hybrid Flash
Array (HFA) market was worth slightly more than $2.81 billion in
revenue, up 8.6% from 1Q18.

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 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. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter at @IDC
and LinkedIn.

All product and company names may be trademarks or registered trademarks
of their respective holders.

Contacts

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

Paul
Maguranis
508-988-6711
pmaguranis@idc.com

Greg
Macatee
508-935-4707
gmacatee@idc.com

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

Worldwide Enterprise Storage Systems Market Revenue Declined 0.6% During the First Quarter of 2019, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–#AFA–According to the International Data Corporation (IDC)
Worldwide
Quarterly Enterprise Storage Systems Tracker
, 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.”

Total Enterprise Storage Systems Market Results, by Company

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.

 

Top 5 Companies, Worldwide Total Enterprise Storage Systems
Market, First Quarter of 2019

(Revenues are in US$
millions)

Company    

1Q19
Revenue

 

1Q19
Market
Share

 

1Q18
Revenue

 

1Q18
Market
Share

 

1Q19/1Q18
Revenue
Growth

1. Dell Technologiesa     $2,964.9   22.2%   $2,995.8   22.3%   -1.0%
2. HPE/New H3C Groupb     $2,318.5   17.3%   $2,356.7   17.5%   -1.6%
3. NetApp     $894.9   6.7%   $890.1   6.6%   0.5%
4. Hitachi     $486.2   3.6%   $464.4   3.5%   4.7%
T5. Lenovo*     $337.0   2.5%   $293.9   2.2%   14.6%
T5. IBM*     $334.1   2.5%   $388.2   2.9%   -13.9%
T5. Pure Storage*     $289.5   2.2%   $236.4   1.8%   22.4%
T5. Huawei*     $283.5   2.1%   $247.4   1.8%   14.6%
T5. Fujitsu*     $257.7   1.9%   $263.9   2.0%   -2.3%
T5. Inspur*     $250.3   1.9%   $236.4   1.8%   5.9%
ODM Direct     $2,948.1   22.1%   $3,112.6   23.1%   -5.3%
Rest of Market     $2,004.3   15.0%   $1,968.3   14.6%   1.8%
Total     $13,369.0   100.0%   $13,454.1   100.0%   -0.6%
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker,
June 6, 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 Technologies 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 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.

 

Top 5 Companies, Worldwide External Enterprise Storage Systems
Market, First Quarter of 2019

(Revenues are in US$
millions)

Company    

1Q19
Revenue

 

1Q19
Market
Share

 

1Q18
Revenue

 

1Q18
Market
Share

 

1Q19/1Q18
Revenue
Growth

1. Dell Technologiesa     $2,355.9   34.4%   $2,219.6   34.0%   6.1%
2. NetApp     $894.9   13.0%   $890.1   13.6%   0.5%
3. HPE/New H3C Groupb     $745.4   10.9%   $652.2   10.0%   14.3%
4. Hitachi     $452.7   6.6%   $457.9   7.0%   -1.1%
T5. IBM*     $320.0   4.7%   $364.1   5.6%   -12.1%
T5. Pure Storage*     $289.5   4.2%   $236.4   3.6%   22.4%
Rest of Market     $1,800.3   26.2%   $1,709.0   26.2%   5.3%
Total     $6,858.6   100.0%   $6,529.3   100.0%   5.0%

Source: IDC Worldwide Quarterly Enterprise Storage Systems
Tracker, June 6, 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 Technologies 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 market
share for the top 5 external enterprise storage system 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 just over $2.47 billion
in revenue during the quarter, up 17.5% year over year. The Hybrid Flash
Array (HFA) market was worth slightly more than $2.81 billion in
revenue, up 8.6% from 1Q18.

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 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. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter at @IDC
and LinkedIn.

All product and company names may be trademarks or registered trademarks
of their respective holders.

Contacts

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

Paul
Maguranis
508-988-6711
pmaguranis@idc.com

Greg
Macatee
508-935-4707
gmacatee@idc.com

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

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