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2017 Press Releases

December 04, 2017

IDC: Worldwide Enterprise Storage Market Grew by 14% in 3Q 2017

According to International Data Corporation (IDC)’s Worldwide Quarterly Enterprise Storage Systems Tracker, the total worldwide enterprise storage systems factory revenue was up 14.0% year over year and reached $11.8 billion in the third quarter of 2017 (3Q17). Total capacity shipments rose by 22.4% year over year to 72.5 exabytes during the quarter. Revenue growth increased within the group of original design manufacturers (ODMs) that sell directly to hyperscale data centres. This portion of the market was up 54.8% year over year to just under $2.7 billion. Sales of server-based storage increased 8.7% during the quarter and accounted for $3.5 billion in revenue. External storage systems remained the largest market segment, with the $5.6 billion in sales represented an increase of 4.1% year over year.

"The enterprise storage market finished the third quarter of 2017 on a positive note, posting strong year-over-year growth and the first double-digit growth in several years," said Liz Conner, research manager, Storage Systems. "All Flash, software-defined, and converged/hyper-converged systems continue to be the driving force for traditional storage vendors. Meanwhile, hyperscalers once again saw event-driven storage requirements lead to strong growth in this segment during the third quarter."

3Q17 Total Enterprise Storage Systems Market Results, by Company

HPE/New H3C Group held the number 1 position within the total worldwide enterprise storage systems market, accounting for 20.2% of spending. Dell Inc held the next position with a 18.8% share of revenue during the quarter. NetApp finished third with 6.0% market share. IBM and Hitachi finished in a tie* for the fourth position, capturing 4.3% and 4.0% of global spending, respectively. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale data centre customers accounted for 22.7% of global spending during the quarter.
 

Notes:
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 2Q 2016 and going forward.

HPE/New H3C Group includes the acquisition of Nimble, completed in April 2017.

Dell Inc. represents the combined revenues for Dell and EMC.

* – IDC declares a statistical tie in the worldwide enterprise storage systems market when there is less than one percent difference in the revenue share of two or more vendors.

3Q17 External Enterprise Storage Systems Results, by Company

Dell Inc was the largest external enterprise storage systems supplier during the quarter, accounting for 28.8% of worldwide revenues. NetApp finished in the number 2 position and HPE in the number 3 position with 12.5% and 11.4% of market share, respectively. IBM and Hitachi rounded out the top 5 in a tie* with revenue shares of 8.7% and 8.3%, respectively.
 

Notes:
Due to the existing joint venture between HPE and the New H3C Group, IDC will be reporting external market share on a global level for HPE as "HPE/New H3C Group" starting from 2Q 2016 and going forward.

HPE/New H3C Group includes the acquisition of Nimble, completed in April 2017.

Dell Inc represents the combined revenues for Dell and EMC.

* – IDC declares a statistical tie in the worldwide enterprise storage systems market when there is less than one percent difference in the revenue share of two or more vendors.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated just shy of $1.6 billion in revenue during the quarter, up 38.1% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.3 billion in revenue and 19.1% of the total market share.

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 analysing 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.