Enterprise Storage Market Up 19% In Q3, Dell Maintains Leadership

The global enterprise storage system market grew 19.4% during the Q3 of this fiscal to reach $14 billion and the total capacity shipments were up 57.3% year over year to 113.9 exabytes during the quarter, says latest IDC data.

In the previous quarter or Q2 of 2018, the enterprise storage market was at $11.7 billion globally.

“The third quarter results show a continuation of growth realized through the first half of 2018, driven by an ongoing infrastructure refresh cycle, investments in resource intensive next-generation workloads, and expanded use in public cloud services,” said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. “Enterprises appreciate the value that data brings to their operations, client engagement, and innovation initiatives. As a result, there is ongoing investment in storage systems that support efficient data consumption and dissemination.”

Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters increased 45.8% year over year in 3Q18 to $3.9 billion. This represents 27.7% of total enterprise storage investments during the quarter. Sales of server-based storage increased 10.1% year over year to $3.8 billion in revenue. This represents 27.3% of total enterprise storage investments. The external storage systems market was worth roughly $6.3 billion during the quarter, up 12.5% from 3Q17.

Dell Inc that includes the business of EMC was the largest supplier of enterprise storage systems for the quarter with a market share of 19.2%. The company grew by 21.8% year over year to clock revenues of $2695 million in Q3, 2018 as against $2213 million in Q3, 2017.

HPE/New H3C Group was the second largest supplier with 16.4% market share of revenue on a year-to-year decline of 3.3%. NetApp generated a 5.8% share of total revenue, making it the third largest vendor during the quarter. This represented 15.3% growth over 3Q17.

Hitachi, Huawei, IBM, Lenovo, and Inspur were all statistically tied for the number 4 position with shares of 3.0%, 3.0%, 2.9%, 2.6%, and 2.2% respectively. As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 27.7% of global spending during the quarter and grew revenue by 45.8% against 3Q17.

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