Worldwide enterprise storage systems revenue rose 14% in 3Q17
Market research company IDC (International Data Corporation) estimated a rise of 14% YoY (year-over-year) in sales from total worldwide enterprise storage systems in 3Q17. Total capacity shipments rose 22.4% YoY to 72.5 exabytes in the quarter, which ended in September 2017, while revenue growth was driven by ODM (original design manufacturers) who sold directly to hyperscale datacenters. ODM sales rose almost 55% YoY to $2.7 billion in 3Q17 compared to overall sales of $11.8 billion.
Server-based storage revenue rose 8.7% to $3.5 billion in 3Q17, while external storage systems continued to be the largest segment, with sales rising 4.1% YoY to $5.6 billion. The enterprise storage market returned to double-digit growth after several years as all-flash, software-defined, and converged systems drove revenue in the quarter.
NetApp had a share of 6% in the total enterprise storage systems market
Hewlett Packard Enterprise/New H3C Group (HPE) was the top player in the worldwide enterprise storage systems market, accounting for 20% of the total market. Dell followed at 18.8%. Other major players included NetApp (NTAP), IBM (IBM), and Japan’s (EWJ) Hitachi with shares of 6%, 4.3%, and 4%, respectively, at the end of 3Q17.
In the external enterprise storage space, the top players were Dell, NetApp, HPE, IBM, and Hitachi with market shares of 28.8%, 12.5%, 11.4%, 8.7%, and 8.3%, respectively. NetApp’s revenue in the worldwide external enterprise storage systems market rose 19.4% YoY in 3Q17 compared to the market’s overall growth rate of 4.1%.
IDC expected revenue in the all-flash array market to rise 38% YoY to $1.6 billion. The hybrid flash array market also rose 19% to $2.3 billion in 3Q17.