Storage systems vendors have observed a decline in revenues due to a slowdown in hardware sales over the last couple of years. As a result, prominent vendors such as EMC(NYSE: #EMC, #NetApp, #IBM, #Hitachi Data Systems and #HPE have seen weakness in storage revenues. Moreover, the declines reported by these vendors has been greater than the industry-wide declines, since these sellers are increasingly facing competition from smaller vendors and flash-storage startups.
Over the last six to eight quarters, customer preference has been shifting to low-cost original design manufacturer storage boxes, which is cutting into the addressable marketfor large vendors. EMC’s share in the storage systems market declined from 31.3% in 2013 to under 30% in 2015, as its revenues declined at a CAGR of almost 4% compared to the industry-wide decline of 1% in the same period.
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