Global enterprise storage systems market saw decline in Q119, says IDC

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The global enterprise storage systems market recorded $13.4b in revenues in the first quarter of 2019 (1Q19), which is a decline of 0.6% on year-over-year (YOY) basis.

According to International Data Corporation’s (IDC) latest study, titled Worldwide Quarterly Enterprise Storage Systems Tracker, the total capacity shipments increased 14.1% to 114.2 exabytes on a YOY basis during the quarter.

The study also reports $2.95bn in revenue generation by the group of original design manufacturers (ODMs) selling directly to hyperscale data centres. This was a 5.3% decrease on a YOY basis, representing 22.1% of the total enterprise storage investments during 1Q19. The YOY sales of server-based storage slumped 6.6% to just over $3.6b in revenues, which represents a 26.6% of the total enterprise storage investments. However, the external storage systems market totalled approximately $6.9b during the quarter – a YOY increase of 5%.

Sebastian Lagana, research manager of IDC’s infrastructure platforms and technologies division, said: “First quarter 2019 results are an acceleration of the slowdown we noted last quarter, with declining ODM and internal (server-based) storage the primary drivers of market contraction. OEM vendors selling dedicated storage arrays still generated growth during the quarter, although slowing flash-centric array growth indicates that the opportunity for existing install-base upgrades is beginning to wane.”

Last month, a study by Synergy Research concluded that the spending of the cloud hyperscalers has come to a comparative halt. The analyst firm found that the total capital expenditure across the largest cloud vendors amounted to just $26b in 1Q19, which was a 2% fall on a YOY basis.  According to the report, Amazon, Google, Facebook, Microsoft, and Apple were the top five hyperscale spenders in the most recent quarter. in hearing industry leaders discuss subjects like this and sharing their use-cases? Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data Expo and Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam and explore the future of enterprise technology.

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