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Storage sales still sluggish

External storage revenue increased less than one percent year-over-year last quarter, with none of the major vendors growing more than 3.5 percent. That’s better than the two previous quarters of year-over-year declines, but hardly suggests a recovery.

The networked storage revenue of $5.8 billion ticked up from $5.754 million in the third quarter of 2013. EMC held its lead with $1.82 billion, up 3.5 percent from $1.71 billion the previous year. Its overall market share increased from 30.6 percent to 31.4 percent. No. 2 Net App increased 0.3 percent to 12.9 percent market share, No. 4 Hewlett-Packard (HP) went from 9.5 percent share to 9.7 share with 2.7 percent revenue growth, and No. 6 Dell grew 6.2 percent revenue and increased share from 7.2 percent to 7.3 percent.

No. 3 IBM and No. 5 Hitachi Data Systems were the big losers. IBM’s revenue of $591 million was a 9.9 percent drop from last year, and its market share fell from 11.1 percent to 10.2 percent. HDS revenue dropped $2.7 percent to $432 million, and its market share went from 8.3 percent to 7.4 percent.

The losses of IBM and HDS were picked up mostly by smaller vendors. The “others” category grew 6.2 percent to $1.23 million and edged up from 20.1 percent to 21.2 percent.

External disk storage growth lagged behind overall disk storage, which includes server-based and direct attached storage. Total disk storage grew 5.1 percent to $8.75 billion. EMC also led overall disk storage revenue, followed by HP, Dell, IBM and NetApp. The overall disk storage market bounced back from the second quarter, when it fell 5.11.4 percent from last year.

IDC pointed out that server-based storage and smaller external arrays outperformed the market. Server-based storage revenue increased 10 percent and sub-$100,000 external array revenue grew more than six percent. IDC this quarter began tracking Original Design Manufacturers storage sold directly to hyperscale data centers. That ODM storage revenue grew 22 percent, accounted for 43 percent of storage capacity and drove much of the growth in the overall storage market.

IBM and HDS both rely largely on storage for large enterprises, which apparently dropped off in favor of server-based, entry level and ODM storage.

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