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Sunday, March 5, 2017

Dell Technologies Remains Top Enterprise Storage Supplier Despite Revenue Decline

The latest data from the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker shows that total worldwide enterprise storage systems factory revenue was $11.1 billion in the fourth quarter of 2016. That was down 6.7% from the previous year. However, total capacity shipments were 18.3% higher year over year to 52.4 exabytes during the quarter.

Revenue growth increased within the group of original design manufacturers (ODMs) that sell directly to #hyperscale datacenters. This portion of the market was up 3.2% year over year to $1.2 billion. Sales of server-based storage declined 7.8% during the quarter and accounted for $3.4 billion in revenue. External storage systems remained the largest market segment, but the $6.4 billion in sales represented a year-over-year decline of 7.8%.

Despite the impact of headwinds on the broader enterprise storage systems market, companies continue to increase their investments in some key areas, including #softwaredefinedstorage, cloud-based storage, #allflashstorage systems and converged systems.

The largest external enterprise storage systems supplier during the quarter, accounting for 32.9% of worldwide revenues, was #DellTechnologies Inc. (NYSE: DVMT). Its $2.12 billion in revenue was down 17.3% from a year ago. In a statistical tie for second place were Hewlett Packard Enterprise Co. (NYSE: #HPE ), International Business Machines Corp. (NYSE: #IBM ) and #NetApp Inc. (NASDAQ: NTAP), with about a 10% share of the revenue each. As with #Dell, and all suppliers overall, revenue declined year over year for these three as well. Fifth place #Hitachi had 7% revenue share.

When Hewlett Packard Enterprise reported mixed fiscal first-quarter financial results last week, it specified three headwinds as having an impact on the outlook for 2017: increased pressure from foreign exchange movements, higher commodities pricing and some near-term execution issues.
http://247wallst.com/technology-3/2017/03/03/dell-technologies-remains-top-enterprise-storage-supplier-despite-revenue-decline/

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