Story image

HPE and EMC dominate declining enterprise storage market

07 Jun 2016

Global enterprise storage revenue is on the decline, with IDC reporting a decline of 7% year over year for the first quarter of 2016.

According to the analyst firm, factory revenue decline to $8.2 billion during 1Q16, with total capacity shipments down 4.0% year over year to 27.8 exabytes during the quarter.

IDC says revenue growth declined within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacenters. This portion of the market was down 39.9% year over year to $681 million.

Sales of server-based storage were up 2.0% during the quarter and accounted for $2.1 billion in revenue. External storage systems remained the largest market segment, but the $5.4 billion in sales represented a 3.7% year-over-year decline.

"On the heels of a busy end-of-year spending cycle, the enterprise storage system market reverted to a familiar trend," says Liz Conner, research manager, storage systems.

"Spending on server-based storage was up, spending on traditional external arrays continues to decline, while the nature of hyperscale business leads it to fluctuate heavily with that market segment seeing a heavy decline in 1Q16,” she explains.

1Q16 Total Enterprise Storage Systems Market Results

HPE and EMC finished in a statistical tie for the top position within the total worldwide enterprise storage systems market, accounting for 17.3% and 16.4% of spending respectively.

Dell held the next position with a 10.3% share of revenue during the quarter. NetApp accounted for 7.9% of global spending. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale data center customers accounted for 8.3% of global spending during the quarter. 

 

1Q16 External Enterprise Storage Systems Results

EMC was the largest external enterprise storage systems supplier during the quarter, accounting for 24.9% of worldwide revenues. NetApp finished in the number 2 position with 11.9% share.

HPE and Hitachi finished the quarter in a statistical tie for the number 3 position with 9.9% and 9.2% share of worldwide revenues, respectively. IBM and Dell rounded out the top 5 in a statistical tie with a 7.9% and 6.9% share, respectively, of worldwide external enterprise storage revenue during the quarter. 

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated $794.8 million in revenue during the quarter, up 87.4% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.2 billion in revenue and 26.5% market share.

Dropbox invests in hosting data inside Australia
Global collaboration platform Dropbox has announced it will now host Australian customer files onshore to support its growing base in the country.
Opinion: Meeting the edge computing challenge
Scale Computing's Alan Conboy discusses the importance of edge computing and the imminent challenges that lie ahead.
Alibaba Cloud discusses past and unveils ‘strategic upgrade’
Alibaba Group's Jeff Zhang spoke about the company’s aim to develop into a more technologically inclusive platform.
Protecting data centres from fire – your options
Chubb's Pierre Thorne discusses the countless potential implications of a data centre outage, and how to avoid them.
Opinion: How SD-WAN changes the game for 5G networks
5G/SD-WAN mobile edge computing and network slicing will enable and drive innovative NFV services, according to Kelly Ahuja, CEO, Versa Networks
TYAN unveils new inference-optimised GPU platforms with NVIDIA T4 accelerators
“TYAN servers with NVIDIA T4 GPUs are designed to excel at all accelerated workloads, including machine learning, deep learning, and virtual desktops.”
AMD delivers data center grunt for Google's new game streaming platform
'By combining our gaming DNA and data center technology leadership with a long-standing commitment to open platforms, AMD provides unique technologies and expertise to enable world-class cloud gaming experiences."
Inspur announces AI edge computing server with NVIDIA GPUs
“The dynamic nature and rapid expansion of AI workloads require an adaptive and optimised set of hardware, software and services for developers to utilise as they build their own solutions."