EMC Capitalize at NetApp's Expense...
Posted on Wednesday, May 4, 2016
The headline findings in IDC’s latest quarterly storage report make for grim reading – if you’re a storage OEM that is. Overall market revenues were down 2.2% on the same period last year.
But in amongst the doom and gloom were a number of interesting findings.
HPe is on the up
With the exception of the nebulous ‘Others’ category (containing players like Pure), Hewlett Packard Enterprise (HPe) was the only vendor to experience any growth during the quarter. A 7.9% growth in revenue allowed HPe to capture 15% of the market, solidifying their position as the third largest storage vendor based on revenue.
EMC capitalize at NetApp’s expense
As HPe was experiencing growth in new sales, NetApp was losing theirs. With a negative revenue growth (-14.4%), NetApp was bounced down into fifth place in terms of revenue, but helping push EMC’s own results well above the 20% mark.
Businesses are still buying storage
Overall industry revenue may have been down 2.2%, but shipments remain strong. Enterprise storage was up 10.7% in Q5 2015, representing 35.5 exabytes shipped in those three months alone.
Whether businesses are storing data locally, or offloading it to third party cloud services, the reality is that storage sales will continue to increase – unless organizations find a way to better manage and repurpose their existing hardware and capacity. And as organizations consider changing the single-vendor approach to storage purchasing in favour of more flexible options (like OpenStack), the ‘Other’ proportion of the market could still grow considerably.
The future is unclear for vendors, particularly as some appear to be more badly affected by changing demand than others. So every business will be forced to re-evaluate their single vendor approach soon rather than later – or to investigate third party service and maintenance providers who can assist in the event their provider does disappear from the marketplace.
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