Total worldwide enterprise storage systems factory revenue has increased 14 percent to $11.8 billion during the third quarter of 2017, according to the International Data Corporation (IDC).
IDC’s Worldwide Quarterly Enterprise Storage Systems Tracker revealed that about 72.5 exabytes of enterprise storage systems capacity has been shipped during the period, up 24.4 percent year over year, while original design manufacturers (ODMs) that sell directly to hyperscale datacenters witnessed a huge growth of 54.8 percent to nearly $2.7 billion and sales of server-based storage rose 8.7 percent to $3.5 billion in revenue. The largest market segment remains external storage systems, increasing 4.1 percent to $5.6 billion in sales.
IDC Storage Systems research manager Liz Conner said that the enterprise storage market has made decent performance in a short period. Despite that traditional storage vendors were still mainly driven by All Flash, software-defined and converged/hyperconverged systems, hyperscalers showed increasing demands for event-driven storage, reflecting on the strong year-over-year growth in Q3 2017.
During the quarter, HPE/New H3C Group led the total worldwide enterprise storage systems market with a market share of 20.2 percent, followed by Dell Inc. and NetApp, which have market share of 18.8 percent and 6.0 percent respectively, while IBM and Hitachi ended in a draw with 4.3 and 4.0 of global spending each. ODMs targeting directly at hyperscale datacenter customers, as the sole object for research, took up 22.7 percent of market share during the third quarter.
Dell Inc held the No.1 position within the external enterprise storage systems market with 28.8 percent of revenue share, followed by NetApp and HPE/New H3C Group that accounted for 12.5 percent and 11.4 percent share in revenues respectively. Similar to the total enterprise storage systems market results, IBM and Hitachi finished in a tie respectively with revenue shares of 8.7 percent and 8.3 percent.
All Flash Array (AFA) was one of the brightest spots for the report. The total AFA market generated $1.6 billion in revenue in Q3 2017, growing at a year-over-year growth rate of 38.1 percent. At the same time, the Hybrid Flash Array (HFA) remained an important part of the overall enterprise storage systems market, generating $2.3 billion in revenues and accounting for 19.1 percent of market share.
What is Enterprise Storage System?
According to IDC, an Enterprise Storage System represents a range of storage elements, such as cables, controllers, and or host bus adapters, combined with three or more disks. A system can be configured within or outside of a server cabinet. And the infrastructure storage hardware and non-bundled storage software don't consist in the average cost of the disk storage systems.