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IDC: HPE gained share, other large disk vendors tumbled in Q3

Enterprise storage revenue increased 2.8 percent year-over-year in the third quarter of 2015 while networked storage declined 3.1 percent, according to IDC’s disk tracker numbers. Perhaps a better way to put it is Hewlett Packard Enterprise (HPE) and smaller vendors increased, while the rest of the large vendors’ sales tanked.

HPE’s overall disk sales increased 16% to $1.49 billion and its market share grew from 14.4% a year ago to 16.3%. HPE remained second but closed in on leader EMC, which dropped from 20.5% share to 18.4%. EMC’s disk revenue dropped eight percent over last year to $1.68 billion.

IDC said worldwide disk revenue totaled $9.1 billion for the quarter, and capacity shipments grew 31.5% to 33.1 exabytes. IDC credited a rise in server-based storage and storage sold to hyperscale data centers for the overall gain.

HPE was followed by No. 3 Dell with 9.9 percent market share and $899.4 million, No. 4 NetApp with 7.1 percent share and $651 million, and IBM with 6.4 percent share and $584.6 million. All three declined in revenue from last year. IBM’s 32.5% drop reflects it selling its server business to Lenovo.

Revenue from original design manufacturers (ODM) that sell directly to hyperscale data centers increased 23.4% to $1.25 billion and now makes up 13.7% of the market. The smaller vendors who make up the “others” category increased 15.2% to $2.58 billion and 28.2% share.

EMC still has a tighter grip on the external storage market, which consists of storage area networks and network attached storage. All of EMC’s $1.67 billion revenue was in this category, but it fell eight percent from last year and its share dipped from 30.7% to 29.1%. NetApp remained No. 2 despite a 12.8% drop to $651 million and 11.3% share. HPE increased 5.3% to $598.5 million and 10.4% to move past IBM, which stood fourth at $534 million and 9.3 percent market share after a 9.6 percent decline. Hitachi Data Systems rounded out the top five after falling 11.3% to $451.2 million and 7.8 percent share. All other vendors combined increased 8.4 percent to $1.84 billion and 32% share.

The overall networked storage market fell to $5.76 billion in the third quarter. IDC said all-flash array revenue increased 60.8% to $626 million in the quarter and hybrid flash array storage jumped 26.5% to $2.4 billion.

“Spending on traditional external arrays declined during the quarter as infrastructure refresh, coupled with the demand for software-defined storage and cloud-based storage, drove investments more heavily in server-based storage and hyperscale infrastructure,” IDC storage research manager Liz Conner said in the IDC press release.