Vendor revenue in the worldwide enterprise storage systems market decreased 0.6 per cent year-over-year, totalling US$13.4 billion during the first quarter of 2019.
According to IDC findings, total capacity shipments were up 14.1 per cent year-over-year to 114.2 exabytes during the first three months of the year.
Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyper-scale data centres declined 5.3 per cent year-over-year to US$2.95 billion. This represents 22.1 per cent of total enterprise storage investments during the quarter.
Meanwhile, sales of server-based storage decreased 6.6 per cent year-over-year to just over US$3.6 billion in revenue, accounting for 26.6 per cent of total enterprise storage investments.
The external storage systems market revenue totalled nearly US$6.9 billion during the quarter, up five per cent from the same period in 2018.
“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," said Sebastian Lagana, research manager of IDC.
“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.”
From a vendor perspective, Dell Technologies was the largest supplier for the quarter, accounting for 22.2 per cent of total worldwide enterprise storage systems revenue and declining one per cent year-over-year.
Hewlett Packard Enterprise was the second largest supplier with an 17.3 per cent share of revenue on a year-to-year contraction of 1.6 per cent, while NetApp generated a 6.7 per cent share of total revenue, holding the number three position during the quarter.
Hitachi held the fourth position at 3.6 per cent of the market, while Lenovo, IBM, Pure Storage, Huawei, Fujitsu and Inspur all statistically tied for the number five position with shares of 2.5 per cent, 2.5 per cent, 2.2 per cent, 2.1 per cent,1.9 per cent and 1.9 per cent respectively.
As a single group, IDC said storage systems sales by ODMs directly to hyper-scale datacenter customers accounted for 22.1 per cent of global spending during the quarter, down 5.3 per cent against the same period last year.