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June 3, 2016

Global enterprise storage systems market declines 7% to $8.2bn in Q1

HPE and EMC finished in a statistical tie for the top position with 17.3% and 16.4% of spending respectively.

By CBR Staff Writer

Global enterprise storage systems factory revenue dropped 7% year over year to $8.2bn during the first quarter of this year, with Hewlett Packard Enterprise (HPE) and EMC finishing in a statistical tie for the top position, according to International Data Corporation (IDC).

HPE and EMC accounted for 17.3% and 16.4% of spending respectively in Q1. IDC declares a statistical tie in the global enterprise storage systems market if there is less than 1% difference in the revenue share of two or more vendors.

Dell stood at third place with a 10.3% share of revenue in Q1. NetApp held the next position with 7.9% of spending.

IDC said total capacity shipments declined 4% year over year to 27.8 exabytes in Q1.

There was a drop in revenue within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacentres. The market was down 39.9% year over year to $681m.

Server-based storage sales increased 2% in Q1 and accounted for $2.1bn in revenue.

External storage systems remained the largest market segment, but sales declined 3.7% year-over-year to $5.4bn.

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As a single group, storage systems sales by ODMs selling directly to hyperscale data centre customers accounted for 8.3% of worldwide spending in Q1.

EMC stood at the top place in external enterprise storage systems market, accounting for 24.9% of global revenues.

NetApp stood at second place with 11.9% share. HPE and Hitachi finished the quarter in a statistical tie for the third position with 9.9% and 9.2% share of revenues, respectively.

IDC said IBM and Dell rounded out the top five in a statistical tie with a 7.9% and 6.9% share, respectively.

The total all flash array market generated $794.8m in Q1, up 87.4% year over year, and the hybrid flash array segment of the market generated $2.2bn in revenue and 26.5% market share.

IDC storage systems research manager Liz Conner said: "On the heels of a busy end-of-year spending cycle, the enterprise storage system market reverted to a familiar trend.

"Spending on server-based storage was up, spending on traditional external arrays continues to decline, while the nature of hyperscale business leads it to fluctuate heavily with that market segment seeing a heavy decline in 1Q16."

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