Worldwide Enterprise Storage Market Grew 34.4% During the First Quarter of 2018, According to IDC

FRAMINGHAM, Mass. — (BUSINESS WIRE) — June 5, 2018 — The total worldwide enterprise storage systems factory revenue grew 34.4% year over year during the first quarter of 2018 (1Q18) to $13.0 billion, according to the International Data Corporation ( IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were up 79.1% year over year to 98.8 exabytes during the quarter.

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters increased 80.4% year over year in 1Q18 to $3.1 billion. This represented 23.9% of total enterprise storage investments during the quarter. Sales of server-based storage increased 34.2% year over year, to $3.6 billion in revenue. This represented 28.0% of total enterprise storage investments. The external storage systems market was worth $6.3 billion during the quarter, up 19.3% from 1Q17.

"This was a quarter of exceptional growth that can be attributed to multiple factors," said Eric Sheppard, research vice president, Server and Storage Infrastructure. "Demand for public cloud resources and a global enterprise infrastructure refresh were two important drivers of new enterprise storage investments around the world. Solutions most commonly sought after in today's enterprise storage systems are those that help drive new levels of datacenter efficiency, operational simplicity, and comprehensive support for next generation workloads."

1Q18 Total Enterprise Storage Systems Market Results, by Company
Dell Inc was the largest supplier for the quarter, accounting for 21.6% of total worldwide enterprise storage systems revenue and growing 43.0% over 1Q17. HPE/New H3C Group was the second largest supplier with 17.7% share of revenue. This represented 18.3% growth over 1Q17. NetApp generated 6.8% of total revenue, making it the third largest vendor during the quarter. This represented 21.7% growth over 1Q17. Hitachi and IBM were statistically tied* as the fourth largest suppliers with 3.6% and 3.0% respective share of revenue during the quarter. As a single group, storage systems sales by original design manufacturers (ODMs) directly to hyperscale datacenter customers accounted for 23.9% of global spending during the quarter, up 80.4% over 1Q17.

 
Top 5 Vendor Groups, Worldwide Total Enterprise Storage Systems Market, First Quarter of 2018 (Revenues are in US$ millions)
Company    

1Q18
Revenue

   

1Q18 Market
Share

   

1Q17
Revenue

   

1Q17 Market
Share

   

1Q18/1Q17
Growth

1. Dell Inc a     $2,815.0     21.6 %     $1,968.2     20.3 %     43.0 %
2. HPE/New H3C Group b c     $2,307.2     17.7 %     $1,950.1     20.1 %     18.3 %
3. NetApp     $890.1     6.8 %     $731.6     7.6 %     21.7 %
T4. Hitachi *     $464.4     3.6 %     $460.1     4.8 %     0.9 %
T4. IBM *     $387.0     3.0 %     $455.3     4.7 %     -15.0 %
ODM Direct     $3,111.5     23.9 %     $1,725.0     17.8 %     80.4 %
Others     $3,035.7     23.3 %     $2,392.0     24.7 %     26.9 %
All Vendors     $13,010.9     100.0 %     $9,682.4     100.0 %     34.4 %
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, June 5, 2018

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