Data Center Refresh Cycle Nudges Storage Market: IDC

Posted on September 04, 2015 By Pedro Hernandez

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Businesses are investing in new technologies to help bring their data centers up to snuff in these cloud-enabled times. Fortunately for vendors, they're also devoting some of their budgets to storage systems that help streamline their IT environments and curb costs.

According to new data released by International Data Corporation (IDC) today, the worldwide disk storage systems market grew 2.1 percent in the second quarter (Q2) of 2015, year over year. In total, vendors generated $8.8 billion in sales during that time, the IT research firm said.

Eric Sheppard, research director of IDC Storage, observed that organizations "are increasingly using new project initiatives and infrastructure refresh as an opportunity to deploy new storage technologies that are able to drive cost and complexity out of their existing storage resources," in a statement. And it's creating an opening for newer, more cutting-edge storage technologies.

"This is pushing critical investment dollars towards technologies like cloud-based storage, integrated systems, software-defined storage, and flash-optimized storage systems at the expense of traditional external arrays," concluded Sheppard.

As in the first quarter and the one before it, hyperscale data center operators are helping to lift demand for systems that can help streamline their storage management workloads. Original design manufacturers (ODMs) that specialized in this portion of the market experienced a year-over-year sales increase of 25.8 percent, topping $1 billion.

"As a collective group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale data center customers accounted for 11.5 percent of global spending during the quarter," stated IDC.

Despite a 4 percent drop in revenue, EMC took the enterprise storage systems crown again in Q2 with nearly $1.7 billion in sales and 19.2 percent of the market. Second-place HP saw its sales climb 8.7 percent to $1.4 billion, enough to claim a 16.2 percent of share of the market. Dell, IBM and NetApp rounded out the top five.

External storage systems makers generated $5.7 billion in revenue during Q2, a 3.9 percent drop. The server-based storage segment grew 10 percent, reaching $2.1 billion.

Among this group, EMC came in first with nearly 30 percent of the market. IBM, NetApp and HP were locked in a statistical tie for second place, each with roughly 11 percent of the market sales hovering around $600 million. Dell and Hitachi tied for fifth place.

Pedro Hernandez is a contributing editor at InfoStor. Follow him on Twitter @ecoINSITE.


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