Networked storage is getting old: Revenues slump again
The market for networked storage arrays is still in decline, with revenues falling for the second quarter in a row, according to market research firm International Data Corporation (IDC), which has just release its Q2 2014 quarter storage tracker, which looks at both networked storage arrays and also the total disk storage market. IDC said that sales of both mid-range and high-end arrays took a hit, marking a full 12 months of high-end storage revenue decline.
Total network storage factory revenues reached $5.9 billion for the quarter, a decline of 1.4 percent year-on-year. However, total disk storage revenues were up slightly, reaching $7.8 billion – a 0.3 percent increase compared to Q2 of 2013.
“The high-end decline was not as striking as last quarter but it was coupled with a drop in midrange sales, suggesting weak demand is spreading to other parts of the market,” said Eric Sheppard of IDC. “Bright spots within the global storage market include growth from entry-level storage and increased sales within EMEA and Latin America.”
IDC’s findings support the theory that server SANs, cloud storage and all-flash storage are slowly but surely eating away at networked disk storage array sales.
As far as the vendors go, EMC Corp. remains top dog with a sizeable 30.1 percent chunk of the market, however that’s down from the 31.2 percent share it held this time last year. NetApp Inc. came in second place, just ahead of third place IBM Corp., with 13 percent and 12.1 percent respectively, compared to 13.2 percent and 12.5 percent in Q2 2013. The top three vendor’s losses mean that others vendors are chipping away at their lead. Fourth place Hewlett-Packard Company held 10.1 percent of the market, up from 10 percent last year. Meanwhile Dell Inc., landed in fifth place with 7.2 percent, followed by Hitachi Ltd. in sixth with 6.4 percent.
Top five vendors, worldwide total disk storage systems market, second quarter of 2014. Source: IDC
IDC defines a disk storage system as a set of storage elements, including controllers, cables, and, in some instances, host bus adapters, and three or more disks.
photo credit: Vittoriofe via photopin cc
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