Enterprise storage systems factory revenue rose 2.9 percent to $10.8 billion in the second quarter of 2017.
Shipment of enterprise storage increased 16.5 percent to 65.3 exabytes, said IDC.
Revenue of original design manufacturers (ODMs) that sell directly to hyperscale datacenters rose 73.5 percent to $2.5 billion.
Sales of server-based storage fell 13.4 percent and accounted for $2.9 billion in revenue. External storage systems remained the largest market segment, but the $5.3 billion in sales represented a decline of 5.4 percent.
“Traditional storage vendors continue to expand their product portfolios to take advantage of the market swing towards All Flash and converged/hyperconverged systems. Hyperscalers saw new storage initiatives and event-driven storage requirements lead to strong growth in this segment during the second quarter,” said Liz Conner, research manager, Storage Systems at IDC.
HPE is the number 1 enterprise storage vendor, accounting for 20.1 percent of storage spending.
Dell is second largest sever company with 18.4 percent share of revenue.
NetApp finished third with 6.4 percent market share.
IBM is in fourth position, capturing 5.2 percent of storage spending.
Hitachi is in the top 5 with 3.8 percent market share.
As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale datacenter customers accounted for 23.3 percent of global spending during the quarter.
Dell was the largest external enterprise storage systems supplier, accounting for 28.4 percent of revenues.
NetApp finished in the number 2 position and HPE in the number 3 position with 13 percent and 11.6 percent of market share, respectively. IBM and Hitachi rounded out the top 5 with revenue shares of 10.1 percent and 7.5 percent, respectively.
IDC said total All Flash Array (AFA) market generated over $1.4 billion in revenue, up 37.6 percent year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.1 billion in revenue and 19.6 percent of the total market share.