Vendor revenue in the worldwide enterprise storage systems market decreased 0,6% year over year to $13,4-billion during the first quarter of 2019 (1Q19).
According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, total capacity shipments were up 14.1% year over year to 114,2 exabytes during the quarter.
Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale data centres declined 5,3% year over year in 1Q19 to $2,95-billion. This represents 22,1% of total enterprise storage investments during the quarter.
Sales of server-based storage decreased 6,6% year over year to just over $3,6-billion in revenue. This represents 26,6% of total enterprise storage investments. The external storage systems market revenue totaled nearly $6,9-billion during the quarter, up 5% from 1Q18.
“First quarter 2019 results are an acceleration of the slowdown we noted last quarter, with declining ODM and internal (server-based) storage the primary drivers of market contraction,” says Sebastian Lagana, research manager: infrastructure platforms and technologies at IDC.
“OEM vendors selling dedicated storage arrays still generated growth during the quarter, although slowing flash-centric array growth indicates that the opportunity for existing install-base upgrades is beginning to wane.”
Dell Technologies was the largest supplier for the quarter, accounting for 22,2% of total worldwide enterprise storage systems revenue and declining 1% year over year.
HPE/New H3C Group was the second largest supplier with an 17,3% share of revenue on a year-to-year contraction of 1,6%.
NetApp generated a 6,7% share of total revenue, holding the number three position during the quarter.
Hitachi held the fourth position at 3.6% of the market, while Lenovo, IBM, Pure Storage, Huawei, Fujitsu and Inspur all statistically tied for the number five position with shares of 2,5%, 2,5%, 2,2%, 2,1%,1,9%, and 1,9% respectively.
As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 22,1% of global spending during the quarter, down 5,3% against 1Q18.
Dell Technologies was the largest external enterprise storage systems supplier during the quarter, accounting for 34,4% of worldwide revenue.
NetApp was second with 13% of the market, followed by HPE/New H3C Group with 10,9%. Hitachi held the fourth position with 6,6% of the external storage market, while IBM and Pure Storage finished in a statistical tie for fifth with 4,7% and 4,2% market share, respectively.