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Disk storage increases over Q1 2014, but networked storage declines

Disk storage revenue grew 6.8 percent during the first quarter of 2015, with server-based and hyperscale storage picking up the slack for SAN and NAS sales according to IDC’s latest storage tracker numbers.

External storage – SAN and NAS – dropped 0.6 percent from the first quarter of 2014. It slipped from $5.64 billion to $5.61 billion. That compares to overall disk sales that jumped from $8.21 billion in the first quarter of 2014 to $8.77 billion in the first quarter this year. Total capacity shipments increased 41.1% year over year to 28.3 exabytes during the quarter.

“Following a busy end-of-year spending environment, the enterprise storage market fell back into what has become a familiar market pattern,” IDC storage research director Eric Sheppard said in a statement. “Spending on traditional external arrays fell during the quarter while demand for server-based storage and hyperscale infrastructure was up strongly during the quarter.”

Server-based storage includes hyper-converged and direct attached storage, while hyperscale infrastructure consists of large-scale web storage.

From a vendor perspective, Heweltt-Packard (HP), Dell and Hitachi Data Systems (HDS) increased year-over-year while sales from EMC, NetApp and IBM decreased. Original design manufacturers (ODM’s) selling directly to hyperscale data center customers accounted for 12.6 percent of global spending and the “others” category made up 30.5 percent of disk storage sales.

In the overall disk market, EMC held on to the No. 1 vendor spot despite a 6.7 percent decline to $1.51 billion for the quarter. EMC’s market share dropped from 20 percent to 17.4 percent. No. 2 HP increased 19.3 percent to $1.28 billion and increased market share from 13.1 percent to 14.6 percent. Dell moved past NetApp into third, growing six percent to $897 million for 10.2 percent share. NetApp revenue fell 10.5 percent to $765 million and it slipped from 10.4 percent market share to 8.7 percent. Fifth-place IBM’s revenue declined 29.3 percent to $525 million and went from nine percent share to six percent.

EMC and NetApp remained the top external disk vendors – all of their revenues are in that category – with EMC at 27.3 percent share and NetApp at 13.6 percent. HP ($512 million) and HDS ($507) are in a virtual tie for third with HP holding 9.1 percent share and HDS nine percent. IBM placed fifth with $424 million, falling 12.8 percent and dropping from 8.8 percent share to 7.7 percent. Dell was sixth with $395.1 million, an increase of 2.1 percent over 2014 for seven percent share.