According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, global market revenue for enterprise external OEM storage systems declined 5.0% year over year to just under $6.3 billion during the second quarter of 2020 (2Q20).
Total external OEM storage capacity shipped was up 5.1% year over year to 17.1 exabytes during the quarter. Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters grew 64.1% year over year to $7.0 billion in 2Q20, while capacity shipped grew 122.1% year over year to 74.8 exabytes. Total capacity shipments for the market (External OEM + ODM Direct + Server-Based Storage) increased 59.7% to 124.6 exabytes.
'The external OEM market was down once again during the second quarter of the year as COVID-19 related impacts spread across the globe and hamstrung enterprise spending on external storage systems outside of China,' said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. 'Aside from China, the ODMs were once again a bright spot in the market as cloud builders and hyperscalers ramped up capacity during the quarter in order to support a strong demand environment from both corporate and consumer markets. While enterprise appetite for infrastructure provision from large cloud service providers remains a core driver of the success of ODMs, consumer demand for services from content delivery networks and collaboration tools remains robust and is driving purchasing from a long tail of providers.'
Enterprise External OEM Storage Systems Results, by Company
Dell Technologies was the number 1 external enterprise storage systems supplier during the quarter, accounting for 27.0% of worldwide revenue. HPE/New H3C group and NetApp finished the quarter in a statistical tie* for second with revenue shares of 10.5% and 9.8% respectively, followed by IBM and Huawei tied* for fourth at 8.1% and 7.7% of quarterly market share.
Top 5 Companies, Worldwide Enterprise External OEM Storage Systems Market, Second Quarter of 2020 (Revenues are in US$ millions)
2Q20 Market Share
2Q19 Market Share
2Q20/2Q19 Revenue Growth
1. Dell Technologiesa
T2. HPE/New H3C Groupb*
Rest of Market
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 8, 2020.
IDC declares a statistical tie in the worldwide enterprise storage systems market when there is a difference of one percent or less in the share of revenues or unit shipments among two or more vendors.
a Dell Technologies represents the combined revenues for Dell and EMC.
b Due to the existing joint venture between HPE and the New H3C Group, IDC is reporting market share on a global level for HPE as 'HPE/New H3C Group' starting from Q2 2016.
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Flash-Based Storage Systems Highlights
The total All Flash Array (AFA) market generated $2.5 billion in revenue during the quarter, up 7.7% year over year. The Hybrid Flash Array (HFA) market was also worth $2.5 billion in revenue, but was down 8.7% from 2Q19.
Regional External Storage System Highlights
On a geographic basis, China grew the fastest of any region during the quarter, up 18.3% year over year, with Canada the only other region to generate growth during the quarter, up 1.1%. All other regions declined during the quarter, with Japan down 4.7% and EMEA declining 7.8% in aggregate. The United States was down 8.7%, Asia/Pacific (excluding Japan and China) declined 14.7%, and Latin America was down 18.7%.
IDC defines an Enterprise Storage System as a set of storage elements, including controllers, cables, and (in some instances) host bus adapters, associated with three or more disks. A system may be located outside of or within a server cabinet and the average cost of the disk storage systems does not include infrastructure storage hardware (i.e. switches) and non-bundled storage software.
The information in this quantitative study is based on a branded view of the enterprise storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer. Original equipment manufacturer (OEM) sales are not included in this study.
IDC's is a quantitative tool for analyzing the global disk storage market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both customer and factory), Terabytes, $/Gigabyte, Gigabyte/Unit, and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, company, family, model, and region.
The IDC Worldwide Quarterly Enterprise Storage Systems Tracker is part of the Worldwide Quarterly Enterprise Infrastructure Tracker, which provides a holistic total addressable market view of the five key enabling infrastructure technologies for the datacenter (servers, external enterprise storage systems, purpose-built appliances: HCI and PBBA, and datacenter switches).
For more information about IDC's Worldwide Enterprise Storage Systems Quarterly Tracker, please contact Lidice Fernandez at 305-351-3051 or email@example.com.
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