Global Enterprise Storage Market Sees Decline in Q4

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Total worldwide enterprise storage systems factory revenue declined 2.2% year over year to $10.4 billion during the fourth quarter of 2015 (4Q15), according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker. Total capacity shipments were up 10.7% (year over year) to 35.5 exabytes during the quarter. Revenue growth declined within the group of original design manufacturers (ODMs) that sell directly to hyperscale datacenters. This portion of the market was down 14.4% year over year to $1.2 billion. Sales of server-based storage were up 6.1% during the quarter and accounted for $2.2 billion in revenue. External storage systems remained the largest market segment, but the $7.0 billion in sales represented a 2.3% year-over-year decline.

"The enterprise storage market closed out 2015 on a slight downturn, as spending on traditional external arrays continues to decline," said Liz Conner, Research Manager, Storage Systems. "Over the past year, end user focus has shifted towards server-based storage, software-defined storage, and cloud-based storage. As a result, traditional enterprise storage vendors are forced to revamp and update their product portfolios to meet these shifting demands."

4Q15 Total Enterprise Storage Systems Market Results

EMC finished in the top position within the total worldwide enterprise storage systems market, capturing 21.5% of all revenue. HPE was the number 2 vendor with 15.1% share of revenue during the quarter while Dell and IBM finished tied* for the number 3 position with worldwide shares of 8.9% and 8.6% respectively. As a group, storage systems sales by ODMs selling directly to hyperscale datacenter customers accounted for 11.2% of global spending during the quarter.

4Q15 External Enterprise Storage Systems Results

EMC was the largest external enterprise storage systems supplier during the quarter, accounting for 31.7% of worldwide revenues. IBM finished in the number 2 position with 11.3% share. HPE and NetApp finished the quarter in a statistical tie* for the number 3 position with 10.1% and 9.3% share of worldwide revenues, respectively. Hitachi rounded out the top 5 with a 7.6% share of worldwide external enterprise storage revenue during the quarter.

Flash-Based Storage Systems Highlights

The total All Flash Array (AFA) market generated $955.4 million in revenue during the quarter, up 71.9% year over year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2.9 billion in revenue and 28.0% market share.

2015 Total Enterprise Storage Systems Market Results

EMC finished in the top position within the total worldwide enterprise storage systems market, capturing 19.2% of all revenue. HPE was the number 2 vendor with 15.5% share of revenue during the year. Dell finished in the number 3 position with a worldwide share of 9.7%. As a group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale datacenter customers accounted for 12.3% of global spending during the quarter.

2015 External Enterprise Storage Systems Results

EMC was the largest external enterprise storage systems supplier during the quarter with a 29.6% share of worldwide revenues. NetApp finished in the number 2 position with 11.1% share. HPE and IBM finished the quarter in a statistical tie* for the number 3 position with 10.0% and 10.0% share of worldwide revenues, respectively. Hitachi rounded out the top 5 with a 7.7% share of worldwide external enterprise storage revenue during the year.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.