Enterprise storage revenue fell 0.5 percent to $9.2 billion, while storage shipments rose 41.4 percent to 50.1 exabytes in the first quarter of 2017, said IDC.
Original design manufacturers (ODMs) sold storage worth $1.2 billion (+78.2 percent) directly to hyperscale datacenters. ODMs’ storage sales directly to hyperscale datacenter customers accounted for 13.2 percent of spending.
Sales of server-based storage fell 13.7 percent and accounted for $2.7 billion in revenue. External storage systems remained the largest market segment, but the $5.2 billion in sales represented a decline of 2.8 percent.
“Spending on traditional external arrays continues to slowly shrink while spending on all-flash deployments once again posted strong growth and helped to drive the overall market. Meanwhile the very nature of the hyperscale business leads to heavy fluctuations within the market segment, displaying solid growth,” said Liz Conner, research manager, Storage Systems.
Enterprise Storage Market
Dell is the leader in enterprise storage systems market, accounting for 21.5 percent of spending.
HPE held the next position with 20.3 percent share of revenue. HPE’s share and growth rate includes revenues from the H3C joint venture in China that began in May of 2016.
NetApp has 8 percent market share.
Hitachi and IBM are in the fourth position, each capturing 5 percent of storage spending.
External Enterprise Storage
Dell is the largest external enterprise storage supplier, accounting for 27.2 percent of revenues.
NetApp is second largest external enterprise storage supplier with 14 percent share.
HPE is in the number 3 position with 9.7 percent of market share.
Hitachi with 8.6 percent and IBM with 8.4 percent are the other external enterprise storage suppliers.
Flash-Based Storage
The total All Flash Array (AFA) market generated almost $1.4 billion (+75.7 percent) in revenue in Q1 2017. The Hybrid Flash Array (HFA) segment of the market is a significant part of the overall market with $2 billion in revenue and 22 percent of the total market share.