Enabling successful transition to flash storage
NetApp (NTAP) is optimistic about its product portfolio in its All-Flash Array segment and is leading the user transition to the flash environment. Market research firm Gartner named NetApp as the market leader in its Magic Quadrant for solid-state arrays. The other firms named in Gartner’s leader quadrant were Hewlett-Packard Enterprise (HPE), IBM (IBM), and EMC Corp.
Japan’s (EWJ) Fujitsu and the China-based (FXI) Huawei were named in the Niche Players quadrant. In fiscal 2Q17, NetApp’s All-Flash Array segment rose over 300% YoY (year-over-year) to an annualized run rate of $1 billion.
The CEO of NetApp, George Kurian, stated during the fiscal 2Q17 earnings call, “Our new all-flash FAS systems are included in our flash promotion, which offers 3x guaranteed performance and a 4-to-1 guaranteed increase in storage efficiency over competitive disk arrays, as well as a risk -free upfront trial, free storage controller upgrade, and support extension to simplify ongoing operations.”
Worldwide enterprise storage systems revenue
According to market research firm IDC (International Data Corporation), total worldwide enterprise storage revenues in 2Q16 were flat at $8.8 billion. In 2Q16, total capacity shipments rose 12.9% YoY to 34.7 exabytes. Revenues from original design manufacturers (or ODM) who supply hyperscale data centers fell 21.5% YoY to $794.7 million.
EMC led the enterprise storage system market with an 18.1% share in 2Q16, compared to 19.2% in 2Q15. EMC was followed by Hewlett-Packard Enterprise, Dell, IBM, and NetApp at 17.6%, 11.5%, 6.8%, and 6.7%, respectively.
EMC’s revenues fell 5.5% YoY, and IBM and NetApp saw their revenues fall 15.6% and 3.2%, respectively. Hewlett-Packard Enterprise and Dell gained market share in 2Q16 as their revenues rose 8.8% and 13.8%, respectively.
The external enterprise storage systems space comprises ~$5.7 billion of the market, which EMC leads with a 28.2% share. NetApp and Hewlett-Packard Enterprise follow with 10.5% and 10.6% of the market share, respectively. Among the other major players in this space, IBM, Hitachi, and Dell had shares of 9.5%, 7.4%, and 7%, respectively, in 2Q16.
In 2Q16, total AFA (all-flash array) revenues reached $1.1 billion—a 94.5% YoY rise. The HFA (hybrid flash array) revenue touched $2.3 billion in 2Q16, comprising 26% of the overall market.