According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker, global market revenue for enterprise external OEM storage systems declined 5% year over year to just under $6,3-billion during the second quarter of 2020 (2Q20).
Total external OEM storage capacity shipped was up 5,1% year over year to 17,1 exabytes during the quarter.
Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacentres grew 64,1% year over year to $7-billion in 2Q20, while capacity shipped grew 122,1% year over year to 74,8 exabytes.
Total capacity shipments for the market (External OEM + ODM Direct + Server-Based Storage) increased 59,7% to 124,6 exabytes.
“The external OEM market was down once again during the second quarter of the year as Covid-19 related impacts spread across the globe and hamstrung enterprise spending on external storage systems outside of China,” says Sebastian Lagana, research manager: infrastructure platforms and technologies at IDC.
“Aside from China, the ODMs were once again a bright spot in the market as cloud builders and hyperscalers ramped up capacity during the quarter in order to support a strong demand environment from both corporate and consumer markets.
“While enterprise appetite for infrastructure provision from large cloud service providers remains a core driver of the success of ODMs, consumer demand for services from content delivery networks and collaboration tools remains robust and is driving purchasing from a long tail of providers.”
Dell Technologies was the number one external enterprise storage systems supplier during the quarter, accounting for 27% of worldwide revenue. HPE/New H3C group and NetApp finished the quarter in a statistical tie for second with revenue shares of 10,5% and 9,8% respectively, followed by IBM and Huawei tied for fourth at 8.1% and 7.7% of quarterly market share.
The total All Flash Array (AFA) market generated $2,5-billion in revenue during the quarter, up 7,7% year over year. The Hybrid Flash Array (HFA) market was also worth $2,5-billion in revenue, but was down 8,7% from 2Q19.
On a geographic basis, China grew the fastest of any region during the quarter, up 18,3% year over year, with Canada the only other region to generate growth during the quarter, up 1,1%. All other regions declined during the quarter, with Japan down 4,7% and EMEA declining 7,8% in aggregate. The US was down 8,7%, Asia/Pacific (excluding Japan and China) declined 14,7%, and Latin America was down 18,7%.