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IBM and NetApp lose market share in the global storage segment

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December 7, 2015

The latest numbers from IDC's quarterly storage sales report reveals that IBM and NetApp have lost the most market share and that HP has gained the most.

As a whole, global enterprise storage systems revenue grew 2.8 percent year on year to reach about $9.13 billion during the third quarter of this year.

In the total disk storage systems market, EMC led the pack with an 18.4 percent revenue share ($1.82 billion) a drop of eight percent year on year.

In second place, HP rose 16 percent year on year to $1.49 billion, not too far behind EMC.

We then saw Dell trailing in third place with $899.4 million, 1.6 percent less than a year ago.

For its part, NetApp was in joint fourth place with IBM, with its revenues of $651 million being 12.8 percent, down on the year.

But IBM's revenues of $584.6 million were an unexpected 32.5 percent down on the year, although we should remember that the company's third quarter 2015 revenue excludes x86 servers due to the sale of that business to Lenovo.

Other OEMs had $1.25 billion in revenues, up 23.4 percent on the year, and surpassing Dell. Separating external disk systems results causes the scenario to change a little, with IBM’s revenue drop being 9.6 percent on the year, not quite as bad as NetApp’s 12.8 percent.

For its part, EMC remains in top place, now with a 29.1 percent market share at $1.68 billion, an eight percent decline on the year.

Although still in second place for now, NetApp revenues declined 12.8 percent year on year. HP’s on the other hand rose 5.3 percent to $598.4 million, very close to NetApp’s $651 million, and it could overtake NetApp next quarter.

Big Blue was in fourth place with revenues of $522.8 million that fell 9.6 percent on the year. In fifth place was Hitachi at $451.1 million, a drop of 11.3 percent, the second biggest decline after NetApp.

Overall, the external array market had revenues of $5.76 billion and dropped by 31 percent year on year.

However, public cloud and virtual SAN/hyperconverged architecture systems took their toll as well. And there's no reason to presume that this trend won’t continue.

But there's no question that the glory days of external storage array sales look to be over. It will be interesting to see what the next two quarters will bting us.

Source: IDC Market Research.

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