Traditional Midrange Arrays, Server-Based Storage, and Capacity Consumption by Hyperscale Datacenter Customers Drives Third Quarter Storage System Spending, According to IDC
"The storage market had quite a few bright spots during the third quarter," said Eric Sheppard, Research Director, Storage. "Server-based storage with robust amounts of capacity drove internal storage revenue up 10%, while sub-$100K external array revenue grew more than 6% during the quarter. But the biggest market impact came from sales of storage systems by Original Design Manufacturers (ODM) directly to hyperscale datacenters. Revenue generated by this newly tracked set of complete and partially built storage systems grew 22% during the quarter and accounted for 43% of all capacity consumed."
3Q14 Total Disk Storage Systems Market Results
In the total worldwide disk storage systems market, EMC finished in the top position followed by HP with market shares of 20.8% and 14.6% respectively. It should be noted that the addition of ODM Direct to IDC's Worldwide Quarterly Disk Storage Systems Tracker has increased the size of the total market and thus changed relative shares, though rankings were not impacted.
Open Networked Disk Storage Systems Highlights
The total open networked disk storage market (NAS Combined with non-mainframe SAN) was up 2.1% year over year to $5.1 billion in revenue. EMC maintained its leadership in the total open networked storage market with 34.1% revenue share. NetApp was the second largest supplier with 14.7% share.
3Q14 External Disk Storage Systems Results
EMC was the largest external storage systems supplies during the quarter with 31.4% of worldwide sales, up from 30.6% one year ago. NetApp was the number 2 vendor in the external disk storage systems market with 12.9% share in 3Q14. IBM and HP finished the quarter in a statistical tie* for the number 3 position with market shares of 10.2% and 9.7%, respectively. Hitachi and Dell also ended 3Q14 in a statistical tie* for the number 5 position.
Introduction of ODM Direct Storage Systems
The changing role of the original design manufacturer (ODM) has allowed Web services and cloud service owners of hyperscale datacenters to design, procure, and/or deploy new storage architectures, with limited or no involvement from traditional IT original equipment manufacturers (OEMs). The relevance and size of these environments has expanded steadily over the last five years and many of these cloud players now offer cloud computing services that compete with on-premise server deployments for workloads, including Web, mobile, big data/analytics, social collaboration, etc. This increasing market influence and the importance of maintaining a holistic view of the storage market is what ultimately lead IDC to start tracking ODM Direct systems.
IDC defines a Disk Storage System as a set of storage elements, including controllers, cables, and (in some instances) host bus adapters, associated with three or more disks. A system may be located outside of or within a server cabinet and the average cost of the disk storage systems does not include infrastructure storage hardware (i.e. switches) and non-bundled storage software.
The information in this quantitative study is based on a branded view of the disk storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer. Original equipment manufacturer (OEM) sales are not included in this study. In this study, Hitachi Data Systems (HDS) sales do not reflect their OEM sales to Sun Microsystems and Hewlett-Packard.
IDC's Worldwide Disk Storage Systems Quarterly Tracker is a quantitative tool for analyzing the global disk storage market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both customer and factory), Terabytes, $/Gigabyte, Gigabyte/Unit, and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, vendor, family, model, and region.
For more information about IDC's Worldwide Disk Storage Systems Quarterly Tracker, please contact Lidice Fernandez at 305-351-3051 or firstname.lastname@example.org.
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