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Storage revenue continues to decline

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Total worldwide enterprise storage systems factory revenue declined 7% year over year to $8,2-billion during the first quarter of 2016 (1Q16).
According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were down 4% year over year to 27,8 exabytes during the quarter.
Revenue growth declined within the group of original design manufacturers (ODMs) that sell directly to hyperscale data centres.
This portion of the market was down 39,9% year over year to $681-million. Sales of server-based storage were up 2% during the quarter and accounted for $2,1-billion in revenue.
External storage systems remained the largest market segment, but the $5,4-billion in sales represented a 3,7% year-over-year decline.
“On the heels of a busy end-of-year spending cycle, the enterprise storage system market reverted to a familiar trend,” says Liz Conner, research manager: storage systems at IDC.
“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.”
HPE and EMC finished in a statistical tie for the top position within the total worldwide enterprise storage systems market, accounting for 17,3% and 16,4% of spending respectively.
Dell held the next position with a 10,3% share of revenue during the quarter.
NetApp accounted for 7,9% of global spending. As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale data centre customers accounted for 8,3% of global spending during the quarter.