Dell leads HPE in expanding enterprise storage market

Dell was the top enterprise storage vendor during the third quarter (Image Eoneren / iStockPhoto)

Vendor revenue in the worldwide enterprise storage systems market reached US$14 billion during the third quarter of 2018, representing an increase of 19.4% year-over-year.

According to IDC findings, total capacity shipments were up 57.3% year-over-year to 113.9 exabytes during the quarter.

Of note to the channel, Dell Technologies ranked as the largest supplier for the quarter, accounting for 19.2% of total worldwide enterprise storage systems revenue and growing 21.8% year-over-year.

Hewlett Packard Enterprise, alongside the new H3C group, came in as the second largest supplier with 16.4% share of revenue on a year-over-year decline of 3.3%.

This was followed by NetApp, which generated a 5.8% share of total revenue, making it the third largest vendor during the quarter following 15.3% growth year-over-year.

Further down the list, Hitachi, Huawei, IBM, Lenovo and Inspur were all “statistically tied” for the number four position with shares of 3% 3%, 2.9%, 2.6% and 2.2% respectively.

As a single group, storage systems sales by original design manufacturers (ODMs) directly to hyper-scale data center customers accounted for 27.7% of global spending during the quarter and grew revenue by 45.8% against 3Q17.

“The third quarter results show a continuation of growth realized through the first half of 2018, driven by an ongoing infrastructure refresh cycle, investments in resource intensive next-generation workloads, and expanded use in public cloud services," said Sebastian Lagana, research manager at IDC.

“Enterprises appreciate the value that data brings to their operations, client engagement, and innovation initiatives. As a result, there is ongoing investment in storage systems that support efficient data consumption and dissemination.”

Lagana said revenue generated by the group of ODMs selling directly to hyper-scale data centers increased 45.8% year-over-year to US$3.9 billion during the quarter, representing 27.7% of total enterprise storage investments during the period.

Furthermore, sales of server-based storage increased 10.1% year-over-year to US$3.8 billion in revenue, accounting for 27.3% of total enterprise storage investments.

The external storage systems market was worth roughly US$6.3 billion during the quarter, up 12.5% from 3Q17.

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