According to the latest figures from IDC, vendor revenue in the worldwide enterprise storage systems market rose by 21.3% y/y to $13.2 billion in the second quarter of 2018. The figure stood at just under $11 billion the same time last year. IDC attributes the surge to businesses investing in storage platforms to support their need to effectively handle tremendous amounts of data in the growing data economy.
There is a marked increase in demand for hyperscale infrastructures. Direct sales to hyperscale data centres made by original design manufacturers (ODMs) grew 31.7% y/y to reach $3.3 billion, representing just over a quarter of total enterprise storage shipments in 2Q18. The sales of server-based storage also saw a large increase in revenue, 24.9% year over year to $3.8 billion, representing 28.5% of total enterprise storage investments.
Meanwhile, total capacity shipments increased by a staggering 70.7% as enterprises deployed a whopping 111.8 exabytes (1 exabyte = 1 million terabytes) of capacity to meet “ongoing infrastructure refresh cycles, investments in next-generation workloads, expanded use in public cloud services and data-driven initiatives.”
In terms of overall revenue, Dell EMC maintained its dominance as the world's largest supplier for the enterprise storage market – snatching 19.1% of the total storage system revenue and growing 26.6% compared to the same quarter of 2017.
Last year’s market share leader, HPE, followed close behind Dell in second place (17.3%), albeit with a much lower 1.9% y/y growth. NetApp took third place while IBM became the fourth largest supplier of storage systems globally.
Tied at number 5 with Hitachi and Huawei, Lenovo is certainly one to look out for. The company has been going from strength to strength over the past year since it took steps to consolidate key businesses to create a more streamlined, integrated enterprise with a strategy and focus on “Intelligent Transformation”. Lenovo recorded the biggest year on year revenue growth of 132.8%, almost doubling its market share from 1.6% to 3.0% in 2Q18.
The flash storage market also had steady growth, with the All Flash Array (AFA) market generating slightly over $2 billion in revenue (up 41.7% y/y) and the Hybrid Flash Array (HFA) market raking in just under $2.6 billion (up 20.8% y/y) respectively.