Worldwide Enterprise External OEM Storage Systems Market Revenue Declined 5.0% in 2Q20

Article By : IDC

According to IDC, Worldwide Enterprise External OEM Storage Systems Market Revenue Declined 5.0% in 2Q20...

According to the International Data Corporation (IDC), global market revenue for enterprise external OEM storage systems declined 5.0% 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 datacenters grew 64.1% year over year to $7.0 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,” said 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.”

Enterprise External OEM Storage Systems Results, by Company

Dell Technologies was the number 1 external enterprise storage systems supplier during the quarter, accounting for 27.0% 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.

Top 5 Companies, Worldwide Enterprise External OEM Storage Systems Market, Second Quarter of 2020 (Revenues are in US$ millions)
Company 2Q20 Revenue 2Q20 Market Share 2Q19

Revenue

2Q19 Market Share 2Q20/2Q19 Revenue Growth
1. Dell Technologiesa $1,689.7 27.0% $1,891.6 28.7% -10.7%
T2. HPE/New H3C Groupb* $659.7 10.5% $776.0 11.8% -15.0%
T2. NetApp* $612.6 9.8% $684.0 10.4% -10.4%
T4. IBM* $504.6 8.1% $448.1 6.8% 12.6%
T4. Huawei* $481.5 7.7% $326.2 4.9% 47.6%
Rest of Market $2,314.2 37.0% $2,465.6 37.4% -6.1%
Total $6,262.2 100.0% $6,591.5 100.0% -5.0%
Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker, September 8, 2020.

Notes:

* IDC declares a statistical tie in the worldwide enterprise storage systems market when there is a difference of one percent or less in the share of revenues or unit shipments among two or more vendors.

a Dell Technologies represents the combined revenues for Dell and EMC.

b Due to the existing joint venture between HPE and the New H3C Group, IDC is reporting market share on a global level for HPE as “HPE/New H3C Group” starting from Q2 2016.

Flash-Based Storage Systems Highlights

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.

Regional External Storage System Highlights

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 United States was down 8.7%, Asia/Pacific (excluding Japan and China) declined 14.7%, and Latin America was down 18.7%.

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