Worldwide Enterprise Storage Market Grew 13.7% in Q4

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Total worldwide enterprise storage systems factory revenue was up 13.7% year over year to just under $13.6 billion in the fourth quarter of 2017 (4Q17), according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were up 39.3% year over year to 89.2 exabytes during the quarter. Revenue growth increased within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacenters. This portion of the market increased 34.3% year over year to just under $2.8 billion. Sales of server-based storage increased 23.8% during the quarter and accounted for $4.2 billion in revenue. External storage systems remained the largest market segment, with the $6.6 billion in sales representing an increase of 1.8% year over year.

"Investments on enterprise storage systems are increasing at a very healthy pace," said Eric Sheppard, research vice president with IDC's Enterprise I nfrastructure team. "Infrastructure refresh, a broad market shift towards server-based storage, and rapid expansion within public cloud datacenters are combining to creating strong demand for enterprise storage systems."

4Q17 Total Enterprise Storage Systems Market Results, by Company

HPE/New H3C Group and Dell Inc. were statistically tied* for the number 1 position of the total worldwide enterprise storage systems market, accounting for 18.9% and 18.0% of spending, respectively. IBM and NetApp finished tied for third with 5.5% and 5.4% market share, respectively. Huawei and Hitachi were tied for the number 5 position. Huawei achieved 3.8% market share and Hitachi achieved 3.3% market share. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale datacenter customers accounted for 20.4% of global spending during the quarter.

4Q17 External Enterprise Storage Systems Results, by Company

Dell Inc. was the largest external enterprise storage systems supplier during the quarter, accounting for 26.6% of worldwide revenues. HPE/New H3C Group finished in the number 2 position with 12.24% share during the quarter. NetApp and IBM were tied at third place with 11.2% and 10.9% market shares respectively. Hitachi rounded out the top 5 with 6.8% market share.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated just over $1.9 billion in revenue during the quarter, up 15.1% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.7 billion in revenue, up 7.4% from the same quarter last year.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers.


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