The vendor revenue in worldwide enterprise storage systems market increased 21.3% year over year to $13.2 billion during the second quarter of 2018, said a report from IDC. Total capacity shipments were up 70.7% year over year to 111.8 exabytes during the quarter.
“Strong 2Q18 growth was driven by an ongoing infrastructure refresh cycle, investments in next-generation workloads, expanded use in public cloud services and data-driven initiatives,” said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies.
According to IDC's Worldwide Quarterly Enterprise Storage Systems Tracker, the revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters increased 31.7% year over year in 2Q18 to $3.3 billion. This represents 25.1% of total enterprise storage investments during the quarter. Sales of server-based storage increased 24.9% year over year to $3.8 billion in revenue. This represents 28.5% of total enterprise storage investments. The external storage systems market was worth slightly over $6.1 billion during the quarter, up 14.4% from 2Q17.
Overall Enterprise Storage Systems Market
| Top five companies (revenue in millions) | |||||
| Company | 2Q18 Revenue |
2Q18 |
2Q17 Revenue |
2Q17 |
2Q18/2Q17 |
| 1. Dell Inc. | $2,524.5 | 19.1% | $1,993.6 | 18.3% | 26.6% |
| 2. HPE/New H3C Group | $2,288.5 | 17.3% | $2,246.0 | 20.6% | 1.9% |
| 3. NetApp | $832.2 | 6.3% | $694.6 | 6.4% | 19.8% |
| 4. IBM | $609.1 | 4.6% | $566.4 | 5.2% | 7.5% |
| 5. Hitachi | $416.2 | 3.1% | $412.6 | 3.8% | 0.9% |
| 5. Lenovo | $396.8 | 3.0% | $170.5 | 1.6% | 132.8% |
| 5. Huawei | $356.1 | 2.7% | $310.0 | 2.8% | 14.9% |
| ODM Direct | $3,318.0 | 25.1% | $2,520.2 | 23.1% | 31.7% |
| Others | $2,489.4 | 18.8% | $1,995.5 | 18.3% | 24.7% |
| Total | $13,230.6 | 100.0% | $10,909.5 | 100.0% | 21.3% |
| Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 6, 2018 | |||||
Dell Inc. was the largest supplier for the quarter, accounting for 19.1% of total worldwide enterprise storage systems revenue and growing 26.6% over 2Q17. HPE/New H3C Group was the second largest supplier with 17.3% share of revenue and year-to-year growth of 1.9%. NetApp generated 6.3% of total revenue, making it the third largest vendor during the quarter. This represented 19.8% growth over 2Q17.
IBM was the fourth largest supplier with a 4.6% share of market revenue during the quarter and year-over-year growth of 7.5%. Hitachi, Lenovo, and Huawei were all statistically tied for the number 5 position with shares of 3.1%, 3.0%, and 2.7% respectively. As a single group, storage systems sales by ODMs directly to hyperscale data center customers accounted for 25.1% of global spending during the quarter, up 31.7% over 2Q17.
External Enterprise Storage Systems
Dell Inc. was the largest external enterprise storage systems supplier during the quarter, accounting for 29.2% of worldwide revenues. NetApp finished in the number 2 position with 13.5% share of revenue during the quarter. HPE/New H3C Group was the third largest with 10.6% share of revenue. IBM and Hitachi rounded out the top 5 with 9.4% and 6.6% market share, respectively.
Flash-Based Storage Systems
The total All Flash Array (AFA) market generated just over $2.0 billion in revenue during the quarter, up 41.7% year over year. The Hybrid Flash Array (HFA) market was worth slightly under $2.6 billion in revenue, up 20.8% from 2Q17.
