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WW Enterprise Storage Systems Market Revenue Up 21% From 2Q17 to 2Q18 at $13 Billion

According to the International Data Corporation Worldwide Quarterly Enterprise Storage Systems Tracker, vendor revenue in the worldwide enterprise storage systems market increased 21.3% year over year to $13.2 billion during 2Q18.

Total capacity shipments were up 70.7% Y/Y to 111.8EB during the quarter.

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.

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. The growing data economy is a big part of the current market growth. Companies of all sizes are investing in platforms that support their need to ingest, process, and disseminate large volumes of data cost effectively and without introducing new risks to the business.

Overall Enterprise Storage Systems Market by Company

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 yearly 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 datacenter customers accounted for 25.1% of global spending during the quarter, up 31.7% over 2Q17.

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