According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, global market revenue for enterprise external OEM storage systems declined 1.8% year over year to $6.7 billion during the third quarter of 2020 (3Q20). Total external OEM storage capacity shipped was up 9.1% year over year to 18.8 exabytes during the quarter.
Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters grew at 8.7% year over year to $6.4 billion in 3Q20, while capacity shipped grew by 41.4% year over year to 74.5 exabytes. Total capacity shipments for the market (External OEM + ODM Direct + Server-Based Storage) increased 31.6% to 129.7 exabytes.
“During the third quarter of 2020, the external storage systems market continued to face headwinds due to the effects of the global pandemic,” said Greg Macatee, research analyst, Infrastructure Platforms and Technologies at IDC. “On a regional basis, China’s external OEM market fared better than other global areas, up 21.2% year over year. ODM vendors selling directly to hyperscale customers (i.e., ODM Direct) was once again a bright spot for the market. Collaboration tools and content delivery networks were key drivers of ODM sales as consumers continue to demand these types of at-home services on top of traditional enterprise-driven ODM Direct infrastructure consumption.”
Enterprise External OEM Storage Systems Results, by Company
Dell Technologies was the largest external enterprise storage systems supplier during the quarter, accounting for 28.9% of worldwide revenue. HPE/New H3C group finished second with a 10.8% share. NetApp and Huawei tied* for third place in the market with shares of 9.5% and 9.4%, respectively. Hitachi and IBM finished tied* for fifth with market shares of 5.6% and 4.6%, respectively.
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Top 5 Companies, Worldwide Enterprise External OEM Storage Systems Market, Third Quarter of 2020 |
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Company |
3Q20 |
3Q20 Market |
3Q19 |
3Q19 Market |
3Q20/3Q19 |
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|
1. Dell Technologiesa |
$1,949.9 |
28.9% |
$2,077.2 |
30.2% |
-6.1% |
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2. HPE/New H3C Groupb |
$729.6 |
10.8% |
$680.2 |
9.9% |
7.3% |
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|
T3. NetApp* |
$638.5 |
9.5% |
$651.7 |
9.5% |
-2.0% |
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|
T3. Huawei* |
$633.3 |
9.4% |
$511.8 |
7.4% |
23.7% |
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|
T5. Hitachi* |
$376.2 |
5.6% |
$419.4 |
6.1% |
-10.3% |
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|
T5. IBM* |
$312.3 |
4.6% |
$398.4 |
5.8% |
-21.6% |
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Rest of Market |
$2,104.3 |
31.2% |
$2,132.0 |
31.0% |
-1.3% |
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Total |
$6,744.1 |
100.0% |
$6,870.8 |
100.0% |
-1.8% |
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Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, December 8, 2020. |
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Notes:
* 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.
In addition to the table above, a graphic illustrating the worldwide revenue share of the top 5 enterprise external storage systems companies over the previous five quarters is available by viewing this press release on IDC.com.
Flash-Based Storage Systems Highlights
The total All Flash Array (AFA) market generated $2.6 billion in revenue during the quarter, down 0.4% year over year. The Hybrid Flash Array (HFA) market was worth nearly $2.8 billion in revenue but was down 0.7% from the year ago quarter.
Regional External Storage System Highlights
On a geographic basis, China was the only region that grew during 3Q20, up 21.2% year over year. Japan declined 4.4% on a year-over-year basis, while EMEA was down 4.8% in aggregate, the United States was down 6.6%, Asia/Pacific (excluding Japan and China) was down 7.5%, Canada declined 9.4%, and Latin America was down 14.8%.
Taxonomy Notes
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 Enterprise Storage Systems Tracker 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 lfernandez@idc.com.
About IDC Trackers
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