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Hyperscale Drives the Disk Storage Systems Market

The ongoing adoption of cloud computing has shifted the demand for storage systems. Total worldwide enterprise storage systems revenue grew by 2.1 percent year-over-year to reach $8.8 billion during the second quarter of 2015 (2Q15), according to the latest worldwide market study by International Data Corporation (IDC).

However, revenue growth and new system demand was the greatest within the group of original design manufacturers that sell directly to Hyperscale data centers. IDC reported that this portion of the market was up by 25.8 percent year-over-year to $1 billion. The outlook for this segment is continued high-growth.

Sales of server-based storage were up 10 percent during the quarter and accounted for $2.1 billion in revenue. External storage systems remained the largest market segment, but the $5.7 billion in sales represented a -3.9 percent year-over-year decline.

Total capacity shipments were up 37 percent year-over-year to 30.3 exabytes during the quarter.

"Companies 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," said Eric Sheppard, research director at IDC.

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.


Total Disk Storage Systems Market Results

EMC finished in the top position within the total worldwide enterprise storage systems market, accounting for 19.2 percent of all revenues in 2Q15. HP held the second position with 16.2 percent of spending during the quarter. Dell accounted for 10.1 percent of global spending.

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.

External Disk Storage Systems Results

EMC was the largest external storage systems supplier during the quarter with 29.9 percent of worldwide revenues. IBM, NetApp, and HP finished the quarter in a statistical tie for the second largest ranking with revenue shares of 11.1 percent, 10.9 percent and 10.5 percent, respectively.

Dell and Hitachi were also a statistical tie with the two companies earning 6.6 percent and 6.5 percent of worldwide external storage revenues during the quarter.

Open Networked Disk Storage Systems Results

The total open networked disk storage market (NAS Combined with non-mainframe SAN) generated $5 billion in revenue during the quarter. EMC maintained its leadership in the total open networked storage market with 32.4 percent revenue share. NetApp generated 12.3 percent of revenue within this market segment.

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